Medicaid is a joint federal and state program that provides health coverage to millions of Americans, including low-income adults, children, pregnant women, older adults and people with disabilities. Since its establishment under the Lyndon B. Johnson administration in 1965, Medicaid has helped millions of people access not only vital health care services, but a wide range of supportive services that help maintain their health and well-being.

Apart from the occasional news headline and as a topic of debate among policy wonks and political operatives, Medicaid tends not to get very much attention on an everyday basis. And when it does, it’s easy to get lost in the scale and complexity of this foundational component of the American healthcare system.

Let’s change that. Here are five facts about Medicaid that might surprise you.

Surprise Fact #1: Medicaid and CHIP cover one-fifth of the US Population

One out of every five people (21% to be exact) in the United States have health insurance coverage through Medicaid or CHIP (the Children’s Health Insurance Program, which focuses on coverage for children) – that’s nearly 80 million people. Colorado aligns closely with the national proportion: more than 1.1 million Coloradans are covered by Medicaid. Statistically speaking, this means that when you go to the grocery store, every fifth shopper you walk past on your way to the empty egg section will be covered by Medicaid or CHIP.

Surprise Fact #2: Medicaid Covers 41% of All Births in the US

Medicaid plays a critical role in supporting maternal and child health, providing coverage for nearly half of all births in the United States. This is slightly more modest in Colorado, where Medicaid members still comprise 36%, or more than a third, of all births in the state. Families with low incomes receive prenatal care through Medicaid, which is vital for monitoring and ensuring the health of both the mother and the baby. Prenatal care includes regular check-ups, screenings and education on healthy behaviors, which can significantly reduce the risk of complications during pregnancy and childbirth. Additionally, Medicaid covers pediatric care, ensuring that children from low-income families have access to necessary medical services, including vaccinations, check-ups and treatment for acute and chronic conditions. This support is crucial for fostering the healthy development of children and setting them on a path toward a healthy future.

Surprise Fact #3: More Than Half of Medicaid Spending Covers Old Age or Disability

More than half – 51% – of total US Medicaid spending goes toward vital services for people who qualify because of old age or disability. Medicaid is a lifeline for many elderly and disabled individuals who require long-term care services, which are often not covered by Medicare and are either not covered or are prohibitively expensive under commercial plans. Long-term care includes services such as nursing home care, home health care and personal care assistance, which are essential for individuals who need help with daily activities due to aging, illness or disability. By providing these services, Medicaid enables elderly and disabled individuals to maintain their independence and quality of life, while also supporting their caregivers.

Surprise Fact #4: Medicaid Is the Single Largest Payer for Mental Health in the Country

As the largest source of coverage for mental health services in the US, Medicaid helps millions of people each year access care for mental health and substance use needs. These services include therapy, counseling, medication management, and inpatient and outpatient treatment programs. Access to behavioral health services through Medicaid helps individuals manage their conditions, improve their quality of life and reduce the risk of severe outcomes such as hospitalization or incarceration.

Medicaid is also critical for organizations that provide mental health services. Insurance of some kind can help make out-of-pocket costs manageable for people whose plan covers behavioral health, if their provider even takes insurance at all. Unfortunately, many private and commercial insurance plans do not reimburse providers at levels that allow them even to cover their costs (throat clear: we have been fighting for behavioral health parity for ages), which leads many to decide not to accept insurance at all.

Medicaid in Colorado, on the other hand, tends to pay a higher reimbursement rate to providers than commercial insurers (though there are plenty of obstacles to accessing Medicaid funds for many types of providers), making it much more likely that they will be able to cover their own expenses. This is critical, especially for organizations like WellPower who focus more on people with less access to expensive private practice care.

Surprise Fact #5: Medicaid Is Good for the Economy

Medicaid not only benefits individuals but also has a positive impact on the broader economy and community health. By covering such a substantial portion of the population, Medicaid helps reduce uncompensated care costs for hospitals and healthcare providers, which can otherwise lead to higher healthcare costs for everyone through higher insurance premiums and service prices. Additionally, Medicaid funding supports healthcare jobs, contributing to the economic stability of communities. Studies have shown that states with expanded Medicaid programs see improvements in overall health outcomes, reduced rates of uninsured individuals and increased access to preventive care. These factors collectively contribute to healthier, more resilient, more economically prosperous communities.

Bonus: The Medicaid Fact That Won’t Surprise You

Now, the fact you’ve been waiting for – the fact about Medicaid that you probably already know:

Medicaid makes WellPower possible.

As the nonprofit community mental health center for the people of Denver, WellPower receives funding for our work from a variety of sources. The largest is Medicaid, comprising roughly two-thirds of our funding in any given year. Why is that? While WellPower provides comprehensive behavioral health services for people across the lifespan with a range of needs and levels of acuity, a core part of our mission is to care for those with the most limited resources. It’s why we exist. People from these populations are more likely to have healthcare coverage through Medicaid, so we’ve arranged our finances to align with this primary funding source. Because we’re mission-based, we start with serving people – what do people need and how can we add that capacity – and then make the money work. Medicaid is a critical supporter of the work we do every day to serve many of the most vulnerable people in our community.

Wrapping up

Medicaid is a significant component of the US healthcare system, ensuring access to healthcare for tens of millions of Americans. Without Medicaid, a surprising number of people in our communities would not be able to afford medical care, leading to untreated illnesses and worsening health outcomes. And while it serves people with limited resources more directly, Medicaid benefits everyone – by providing essential medical services, supporting maternal and child health, assisting the elderly and disabled, addressing behavioral health needs and stimulating economic and community health, Medicaid contributes to greater well-being for all. And if that’s not enough, it is a vital source of coverage for thousands of the people WellPower serves every day. Frankly, without Medicaid, we wouldn’t be able to continue providing life-saving behavioral health services for the children, adults and families who need us most.