Medicare vs MedicaidFY2025
Medicare vs Medicaid: how much does the US spend on each?
Medicare $996.7 billion, Medicaid $668.1 billion (federal share) in fiscal year 2025.Together 23.7% of all federal spending: $4,871 per US resident, or $10,229 per individual tax return. In FY2026 through August 2026: Medicare $979.3 billion, Medicaid $655.0 billion.
By year
Since FY2015, Medicare +82% and federal Medicaid +91%
Federal outlays by fiscal year, nominal dollars · FY2026* = to August 2026
- Medicare
- Medicaid (federal share)
Every year as a table
| Fiscal year | Medicare | Medicaid (federal) | Medicare ÷ Medicaid |
|---|---|---|---|
| FY2026 to Aug '26 | $979.3 billion | $655.0 billion | 1.50× |
| FY2025 | $996.7 billion | $668.1 billion | 1.49× |
| FY2024 | $874.1 billion | $617.5 billion | 1.42× |
| FY2023 | $847.5 billion | $615.8 billion | 1.38× |
| FY2022 | $755.1 billion | $591.9 billion | 1.28× |
| FY2021 | $696.5 billion | $520.6 billion | 1.34× |
| FY2020 | $776.2 billion | $458.5 billion | 1.69× |
| FY2019 | $651.0 billion | $409.4 billion | 1.59× |
| FY2018 | $588.7 billion | $389.2 billion | 1.51× |
| FY2017 | $597.3 billion | $374.7 billion | 1.59× |
| FY2016 | $594.5 billion | $368.3 billion | 1.61× |
| FY2015 | $546.2 billion | $349.8 billion | 1.56× |
U.S. Treasury, Monthly Treasury Statement Table 5 (Medicaid) and Table 9 (Medicare budget function).
What each figure counts
Medicare is the Treasury's Medicare budget function (Monthly Treasury Statement Table 9): hospital insurance (Part A), medical insurance (Part B), Medicare Advantage and prescription drugs (Part D), net of the premiums enrollees pay. See what share of your taxes goes to Medicare.
Medicaid is the Treasury line “Grants to States for Medicaid” (Table 5): the federal share only. The state share is not included. See federal Medicaid spending by year and by state.
Questions and answers
- Which costs the federal government more, Medicare or Medicaid?
- Medicare: $996.7 billion in FY2025, against $668.1 billion of federal Medicaid grants to states, 1.49 times as much.
- What is the difference between Medicare and Medicaid?
- Medicare is a federal health insurance program for people 65 and older and for some younger people with disabilities, paid for by payroll taxes, enrollees' premiums and general revenue. Medicaid covers people with low income; each state runs its own program and the federal government pays a share of the cost that is larger in poorer states.
- Do these figures include what states pay for Medicaid?
- No. Only the federal grants are federal spending. States pay the rest of Medicaid's cost from their own budgets, so total Medicaid spending is considerably larger than the federal figure here.
- Why is Medicare shown net of premiums?
- The Treasury's budget-function figure for Medicare subtracts the premiums enrollees pay for Parts B and D, which are offsetting receipts. Gross Medicare benefit payments are higher.
Related
- Medicaidby year and state
- Medicareshare of taxes
- CHIPby year
- Obamacare subsidiesby year
- Every federal programsearch
- Your federal tax receiptcalculator
Sources and notes
- U.S. Department of the Treasury, Monthly Treasury Statement, Table 5 line "Grants to States for Medicaid" and Table 9 budget function "Medicare", FY2015-FY2025 and FY2026 to 2026-08-31, Fiscal Data API. Public domain.
- Per tax return: IRS Data Book Table 1-2. Population: U.S. Census Bureau, Vintage 2025.