What Does Medicaid Do? Key Research Findings from 2025

Medicaid is a vital health insurance program that provides coverage to nearly 80 million Americans, including seniors, individuals with disabilities, children, and pregnant women. Regardless of where someone lives in the U.S., many rely on Medicaid for affordable or free access to a wide range of health services, such as hospital stays, doctor visits, nursing homes, pharmacies, and mental health support. This program is responsible for covering approximately 40% of all births, half of all pediatric healthcare, and more than half of long-term nursing home stays, highlighting its critical role in the healthcare system. However, the substantial cost—around $880 billion annually—makes it a focal point of policy discussions at both federal and state levels to ensure effective and responsible spending. Research from the University of Michigan Institute for Healthcare Policy and Innovation sheds light on the program’s multifaceted benefits: it improves health outcomes and reduces mortality, promotes responsible healthcare usage, and encourages high-value care tailored to individual needs. Studies show that Medicaid expansion correlates with a 9% decrease in mortality among low-income populations, preventing over 15,000 deaths in just three years if all states adopt expansion policies. Additionally, Medicaid supports responsible health management, with enrollees more likely to undergo preventive screenings and receive consistent primary care. The program also facilitates better health for those with mental health and substance abuse conditions, with significant improvements observed post-enrollment. For older adults qualifying for both Medicare and Medicaid, continued coverage proves essential in maintaining necessary health services. Medicaid's telehealth initiatives offer increased access to care, especially for those facing transportation or mobility challenges. The economic benefits extend beyond health; enrollees experience substantial reductions in unpaid medical debts, bankruptcies, and evictions, alongside improvements in credit scores and employment prospects. Dental coverage, which is variably included across states, has been linked to enhanced oral and overall health, supporting work capabilities and quality of life. Finally, Medicaid plays a crucial role in stabilizing healthcare facilities, reducing unpaid hospital care costs, and sustaining the healthcare infrastructure needed to serve all populations.

Source: https://medicalxpress.com/news/2025-05-medicaid.html