Brian Blase, Ph.D., is the President of Paragon Health Institute. Brian was Special Assistant to the President for Economic Policy at the White House’s National Economic Council (NEC) from 2017-2019, where he coordinated the development and execution of numerous health policies and advised the President, NEC director, and senior officials. After leaving the White House, Brian founded Blase Policy Strategies and served as its CEO.
Paragon Pic
Medicaid Costs Soared for the Federal Government from 2008 to 2023 While Costs Were Flat for States
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In fiscal year 2008 (the last year before President Obama was president) the federal government spent $201 billion on Medicaid and total Medicaid spending was $333 billion. In fiscal year 2023, the federal government spent $616 billion on Medicaid with total Medicaid spending of $860 billion. The federal share of total Medicaid spending increased from 60 percent to 72 percent between 2008 and 2023.
As demonstrated by this week’s Paragon Pic, in terms of real economic output, federal Medicaid spending increased from 1.36 percent of GDP to 2.28 percent of GDP—a 67 percent increase—between fiscal years 2008 and 2023. The state share of spending stayed at the same percentage of GDP over this period—at 0.90 percent. This means that the entire cost increase of Medicaid (in terms of economic resources) over this period was borne by the federal government—an indication of the large shift in costs from states to the federal government and a key consideration for Congress as it evaluates various Medicaid reform proposals
In fiscal year 2008 (the last year before President Obama was president) the federal government spent $201 billion on Medicaid and total Medicaid spending was $333 billion. In fiscal year 2023, the federal government spent $616 billion on Medicaid with total Medicaid spending of $860 billion. The federal share of total Medicaid spending increased from 60 percent to 72 percent between 2008 and 2023.
As demonstrated by this week’s Paragon Pic, in terms of real economic output, federal Medicaid spending increased from 1.36 percent of GDP to 2.28 percent of GDP—a 67 percent increase—between fiscal years 2008 and 2023. The state share of spending stayed at the same percentage of GDP over this period—at 0.90 percent. This means that the entire cost increase of Medicaid (in terms of economic resources) over this period was borne by the federal government—an indication of the large shift in costs from states to the federal government and a key consideration for Congress as it evaluates various Medicaid reform proposals
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President at Paragon Health Institute
Brian Blase, Ph.D., is the President of Paragon Health Institute. Brian was Special Assistant to the President for Economic Policy at the White House’s National Economic Council (NEC) from 2017-2019, where he coordinated the development and execution of numerous health policies and advised the President, NEC director, and senior officials. After leaving the White House, Brian founded Blase Policy Strategies and served as its CEO.