Taxpayers spend about $2 billion annually on Medicaid for Amazon and Walmart employees
American taxpayers are spending billions every year providing Medicaid benefits to hundreds of thousands of employees of Amazon and Walmart, a new analysis by Popular Information reveals.
Amazon and Walmart are two of the largest and most profitable companies in the country — collectively generating $100 billion in profits in 2025 — but many of their employees still qualify for Medicaid because their take-home pay hovers around (or below) the poverty line.
As taxpayers keep their workers afloat, the wealth of the two companies’ largest shareholders is increasing exponentially. The Walton family, the largest shareholders of Walmart, saw their collective wealth increase from $238 billion in 2021 to $513 billion at the end of 2025. Meanwhile, Amazon founder and current executive chairman Jeff Bezos saw his net worth increase from $187 billion to $255 billion over roughly the same time period.
Popular Information calculated the public subsidy to Amazon and Walmart by cross-referencing several publicly available data sources. Last week, the Government Accountability Office (GAO) released a report examining the top 25 employers of Medicaid enrollees in six states: Georgia, Indiana, Maine, Massachusetts, Oklahoma, and Rhode Island. This provided state-level Medicaid enrollment for Amazon and Walmart workers in all six states, with the exception of Amazon in Maine.
Popular Information compared these figures to the total number of employees working for Walmart and Amazon in each state, sourced from company disclosures, to establish an average Medicaid enrollment rate for each company. The average Medicaid enrollment rate was then used to establish an estimated Medicaid enrollment for employees of each company in the remaining states.
Finally, the estimated number of employees receiving Medicaid in each state was multiplied by that state’s average annual cost of a non-elderly, non-disabled Medicaid enrollee, as published by the Medicaid and CHIP Payment and Access Commission (MACPAC).
Using this methodology, Popular Information estimates that, nationwide, over 156,000 Walmart employees are enrolled in Medicaid at an annual cost to taxpayers of approximately $1.04 billion.
This figure significantly understates the true cost of Medicaid for Walmart employees to taxpayers. First, the calculation only includes the direct cost of Medicaid for the employees themselves. But Walmart’s low wages for these employees also makes their families eligible for Medicaid. Taking into account dependents, the cost to taxpayers would roughly double. Further, the most recent data on Medicaid cost per enrollee from MACPAC is from fiscal year 2023. Costs for 2025 and 2026 are likely significantly higher.
In Walmart’s 2026 fiscal year, then-CEO Doug McMillon was paid over $29.2 million in total compensation while the median Walmart worker earned $30,520 — a ratio of 958 to 1. The earnings of an average worker put them well below the cutoff for Medicaid eligibility for a family of three.
For Amazon, the same methodology finds that an estimated 123,000 Amazon employees are enrolled in Medicaid at a cost to taxpayers of $927 million.
Amazon CEO Andy Jassy was given a massive compensation package of $212 million in 2021, mostly in stock that vests over 10 years. Jassy’s compensation has been smaller since; he was paid another $2.1 million in 2024. Meanwhile, the median Amazon employee earned $40,206 that year. This global number includes the many higher-paid technical employees who work at Amazon. Warehouse workers in the United States, and others in blue collar positions, make much less, making them eligible for Medicaid.
“Amazon is one of the largest job creators in the country, so looking at raw numbers instead of percentages is misleading,” an Amazon spokesman said in response to Popular Information’s request for comment. “Also, eligibility for both SNAP and Medicaid is based on total household income and family size, not individual wages or benefits – so employers that offer part-time options for those who want them, like we do, are likely to have more people who are eligible.”
While Walmart ranked first in terms of “raw numbers” of employees on Medicaid, Amazon had a higher percentage of its workforce on Medicaid (11.7%) than Walmart (9.4%).
Not everyone who works parttime does so by choice. In June 2026, 4.7 million “individuals would have preferred full-time employment but were working part time because their hours had been reduced or they were unable to find full-time jobs,” according to the Bureau of Labor Statistics. Moreover, according to the GAO, 66.1% of employed individuals on Medicaid work full-time.
Walmart declined to comment on the record. According to the company’s corporate website, starting wages at Walmart have increased by 93% since 2015.
Employers have noted and used the popular government definition of a 40 hour work week, reduced in some cases to 36 hours, to hire workers for 35 hours or less so those employers do not have to offer full time benefits to those workers.
This is the critical issue to be faced by our American government if and when it wishes to fulfill its obligations to its citizens’ “life, liberty, the pursuit of happiness.”
Socialism for the rich. Past time to do something about that.