Chart 5: Medicaid Estimated Expenditures (in $ Billions) for Selected Expenditure Categories: Elderly and Nursing Home Spending Combined

Chart 5 represents Medicaid total estimated expenditures by fiscal year. It differs, however from Chart 4 in that nursing home spending has been combined with spending on other services for the elderly, and adults and children have been combined as well. The vertical axis is expenditures in billions of dollars from $0 to $300 and the horizontal axis is fiscal years from 1990 to 2002. The items graphed are adults and children, nursing home and the elderly, and the disabled. This chart illustrated the proportion of Medicaid dollars used by each of these three groups. According to this chart, in FY1990, total Medicaid spending on these three populations was approximately $87 billion. Of that amount, roughly $19 billion went to adults and children, about $26 billion went to disabled beneficiaries, and the remaining $42 billion was spent on nursing homes and services for the elderly. All three categories steadily increased until FY1996, when spending on adults and children decreased to approximately $37.5 billion, down from nearly $40 billion in FY1995. Spending on disabled beneficiaries and nursing home/elderly increased modestly from FY1995 to FY1996, with spending on disabled populations growing from about $62 billion in FY1995 to about $64 billion in FY1996 and nursing home/elderly spending increasing slightly from about $83 billion to $84 billion. The primary takeaway from Chart 5 is most apparent in later fiscal years, which show that spending on the disabled population is increasing in proportion to the other two groups. In FY1990 spending on disabled beneficiaries was approximately 60 percent of spending on nursing home/elderly services; however, in FY2002 spending on both groups was about the same at about $106 billion each. Total Medicaid expenditures for these three populations for FY2002 was around $272 billion. When comparing Chart 5 to Chart 4, note that Chart 5 excludes Medicaid spending on prescription drugs and includes all adults covered by Medicaid, not just women as in Chart 4. These differences explain why total Medicaid expenditures from Chart 4 and Chart 5 do not match.

Last Revised: November 6, 2003