Medicaid prices, volume of services vary widely

New Jersey, New York, and Pennsylvania had the highest costs of care in a recent study of how Medicaid volume of services and prices vary across states.

According to the study, which appeared in the July issue of Health Affairs, per-beneficiary spending in the 10 highest-spending states was $1,650 above the national average. About 72% of the difference was due to the higher-than-average number of services residents of those states received. Spending in the 10 lowest-spending states was $1,161 below the national average, with lower-than-average service use accounting for 58% of that amount. The study examined Medicaid cash data from 2001 to 2005 for inpatient hospital services, outpatient services, and prescription drugs.