Under several national health care reform proposals in 1994, many Medi
caid beneficiaries would have enrolled in health maintenance organizat
ions (HMOs) with other persons. Several states already enroll Medicaid
beneficiaries in HMOs with commercial enrollees. This DataWatch exami
nes the cost of Medicaid enrollees in HMOs relative to the cost of com
mercial enrollees. Data from nine HMOs indicate that, on average, Aid
to Families with Dependent Children (AFDC) and poverty-related Medicai
d enrollees cost 13 percent more than commercial enrollees cost. If on
e adjusts for enrollees' age and sex, Medicaid costs are 23 percent hi
gher than commercial costs.