Medicaid utilization in children: Condition-specific incidence and spending - Summary - MDSpire
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Condition-Specific Incidence and Spending Among Children Using Medicaid

  • By

  • Madelyn Hall

  • Jay G. Berry

  • Samir S. Shah

  • Vineeta Mittal

  • Matt Hall

  • Henry T. Puls

  • Jessica L. Markham

  • October 7, 2026

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Objective:

Characterize healthcare utilization among Medicaid-enrolled children and quantify use and spending across preventive, chronic, and nonchronic care, clinical conditions, and care settings.

Approach:
  • Design and population: Retrospective analysis of 2022 Medicaid Marketscan data for children younger than 20 years enrolled for any duration across 12 states.
  • Classification and analysis: Claims were categorized by principal diagnosis using PECCS, classified as preventive, chronic, or nonchronic care, and grouped by outpatient, inpatient, pharmacy, or emergency setting. Spending was standardized to fee-for-service claims.
Key Findings:
  • The study included 7.2 million children; 78.5% had at least one Medicaid claim, while 21.5% had none.
  • Total expenditures were $22.3 billion. Outpatient care accounted for 55.2% of spending, inpatient care 25.2%, pharmacy 13.9%, and emergency services 5.8%.
  • Preventive care was used by about 50% of healthcare utilizers and accounted for 8.5% of spending.
  • Chronic-condition care was used by about 27% of utilizers and accounted for 41.1% of spending; nonchronic care was used by nearly 70% and accounted for 50.4%.
  • Outpatient services represented 88.5% of preventive-care spending, 64.4% of chronic-care spending, and 42.1% of nonchronic-care spending.
Interpretation:

In this 12-state 2022 Medicaid dataset, spending shares differed across preventive, chronic, and nonchronic care and across service settings.

Limitations:
  • The database lacked a state identifier, and the validity of race data could not be evaluated because race collection and standardization may vary by state.
  • Plan type was assigned from enrollment records rather than individual claims.
  • For claims without a principal diagnosis, the last diagnosis carried forward was used for imputation.
Sources:

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