Nursing Homes Account for 15% of All Medicaid Spending

Dollar bills

Disclaimer: Since Medicaid rules and insurance regulations are updated regularly, past blog posts may not present the most accurate or relevant data. Please contact our office for up-to-date information, strategies, and guidance.


According to the CBO, Congressional Budget Office, 15% of the total $50 billion spent on the federal level to support Medicaid programs, is spent covering nursing home residents’ care; that’s $7.5 billion dollars. And this is only going to increase moving forward.

For some providers, even this amount of spending is not enough to cover resident’s care. Due to the fact that Medicaid pays the Medicaid reimbursement rate for patient’s care rather than the private pay rate, some providers operate in the red. They need a higher reimbursement rate to become profitable and stay in business.

The CBO is estimating future care costs based on current laws and spending trends. They project “spending on Medicare and Social Security alone to jump from $1.3 trillion last year to $2.7 trillion in 2029.”