Economic consequences for Medicaid of human immunodeficiency virus infection

Medicaid is currently a major source of financing for health care for those with acquired immune deficiency syndrome (AIDS) and, to a lesser degree, for those with other manifestations of human immunodeficiency virus (HIV) infection. The HIV epidemic has resulted in a new and expanding group of chronically ill persons with unusually complex medical and social needs. The US health care financing and delivery system is challenged to respond to these needs. A great deal is being done at the state and federal level to use Medicaid creatively to help those affected by the disease. A methodology is presented for estimating HIV-related Medicaid expenditures. The process of developing and utilizing such a model clarifies the features of the HIV epidemic and Medicaid that are most important, highlights the need for better data, and serves as a guide for setting data collection priorities.