Medicaid is Cost-Effective

Medicaid is a cost-effective health coverage program. It generally provides a more comprehensive benefit package than private insurance and costs less per beneficiary than private insurance. A recent analysis of Medicaid expenditure data shows that in 2005, for people with similar health status, Medicaid cost 27% less for children and 20% less for adults than private insurance. In addition, Medicaid’s costs per beneficiary have been growing more slowly than per beneficiary costs under private employer coverage.

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