Variations in Medicaid spending among states and regions

A new research article published by Health Affairs describes and analyzes sources of interstate variation in Medicaid spending over several years. This article finds substantial variations both in the volume of services and in prices. Overall, per capita spending in the ten highest-spending states was $1,650 above the average national per capita spending, of which $1,186, or 72 percent, was due to the volume of services delivered. Spending in the ten lowest-spending states was $1,161 below the national average, of which $672, or 58 percent, was due to volume. In the mid-Atlantic region, increased price and volume resulted in the most expensive care among regions, whereas reduced price and volume in the South Central region resulted in the least expensive care among regions.

Source: Health Affairs. "Differences In The Volume Of Services And In Prices Drive Big Variations In Medicaid Spending Among US States And Regions." Vol 30 No 7, July 2011. http://content.healthaffairs.org/content/30/7/1316.abstract