The Social Environment and Medicaid Expenditures: Factors Influencing the Level of State Medicaid Spending

Whatfactors determine the differences in Medicaid expenditures found among the states? In this note, three researchers use a model thatfocuses on economic, political, and administrativefactors to answer that question. Using data from 47statesfor the period 1977 to 1987, theyfind that economicfactors (eg., wealth of residents) have the greatest influence, while implementation factors (e.g., pre- vious year's spending levels, level of government responsible for administration) have a significant impact. Least important were politicalfactors. Buchanan and colleagues offer several suggestions based on thesefindingsfor controlling Medicaid expenditures, including a callfor greater state-level management.

The Social Environment and Medicaid Expenditures: Factors Influencing the Level of State Medicaid Spending Academic Article