Health Affairs has released a study examining per capita Medicaid spending, finding significant variance in both spending and service volume across states.  The study determined that the 10 states with the highest per capita spending paid $1,650 more than the national average, of which $1,186 was attributed to increased service volume.  Conversely, the 10 states with the lowest per capita spending paid $1,161 less than the national average, of which $672 was attributed to lower service volume.  The authors emphasize the need for improved understanding of these variations to improve care quality and reduce costs, particularly in the context of expanded Medicaid coverage under national health care reform.

Gilmer Todd, P. and Kronick, Richard G. (2011). Differences In The Volume Of Services And In Prices Drive Big Variations In Medicaid Spending Among US States And Regions. Health Affairs, 30 (7):1316-1324. doi: 10.1377/hlthaff.2011.0106. http://content.healthaffairs.org/content/30/7/1316.abstract

Authors: Todd P. Gilmer and Richard G. Kronick.