Medicaid & CHIP

The Medicaid program has grown from $456 billion in 2013 to an estimated $576 billion in 2016, largely fueled by a mostly federally financed expansion of the program to more than 15 million new working age adults.
At the Centers for Medicare & Medicaid Services (CMS), we are making great progress to transform Medicaid, which CMS’s largest program serving 72.5 million beneficiaries.
Two years ago today I was sworn in as CMS Administrator. One of my first actions when I began this journey was to send a letter to the nation’s governors in which I committed to ushering in a new era for the federal and state Medicaid partnership, granting states more freedom to design innovative local solutions.
I have often said that the best action that CMS can take to support state innovation is to get out of the way. We’ve heard loud and clear that states want room to explore new ways of delivering care and designing programs to help their Medicaid beneficiaries live healthier, more independent lives.
Between 2013 and 2016, Federal spending on Medicaid grew by over $100 billion. The program is often the first or second largest line item in state budgets. Just recently, CMS’ independent Office of the Actuary released their Medicaid financial report, confirming what we have already known for quite some time – that our healthcare spending, particularly in Medicaid – is forecast to continue growing, averaging 5.7% annually over the next 10 years to reach over $1 trillion by 2026.
Although some progress has been made in efforts to combat the opioid epidemic, the latest data from the CDC indicate the crisis is not slowing down. However, it is important for our beneficiaries across the country to know that CMS is exploring all of our options to address this national crisis.