06/16/2026
First established in 2016, state directed payments (SDPs) allow states to direct how managed care organizations pay for Medicaid services.
Our new analysis estimates that the vast majority (84%) of federal Medicaid spending on SDPs covers hospital services, totaling an estimated $78 billion annually.
Learn more about how SDPs are used and forthcoming reductions in their funding from our two new issue briefs: https://on.kff.org/4ebzLmL