Month: October 2021

This edition of our 5 Slide Series examines state Medicaid spending during Federal Fiscal Year 2020. Using expenditure reports from CMS, we calculated the share of each state’s Medicaid spending that occurred via capitation. Capitation represented the majority (52.6%) of nationwide Medicaid expenditures during 2020, followed by fee-for-service claims payments (40.1%) and special financing programs (7.3%). Use of a comprehensive care coordination model centered around capitation contracting has grown sharply throughout the past decade, increasing from 27% of national Medicaid spending during 2010 to 53% in 2020. In 22 states capitation represented a majority of Medicaid spending during 2020.