In 2024, Medicaid providers in Atascadero submitted $2,801,647 in claims for the Medicine Services and Procedures category, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. This total reflects an increase of 90.3% from the $1,472,043 recorded in 2023 for the same category of service.
Medicaid is a public health insurance program managed by the states with funding coming from both federal and state governments. The program covers low-income people and families, seniors, children, and individuals with disabilities, making it a major component of the U.S. health care system.
Since taxpayer dollars support Medicaid, shifts in how providers bill for care show how public funds are used in individual communities.
The “Medicine Services and Procedures” classification encompasses a range of Medicaid-billed services defined by specific care types according to standardized HCPCS and CPT code groupings. For this report, each code was sorted into one service group using consistent prefixes and numeric ranges. This method ensures related services are analyzed together without duplicating counts, which supports accurate rankings year over year.
Medicaid spending rose in a number of service categories, with Medicine Services and Procedures ranking as the top category by total Medicaid payments in Atascadero in 2024.
Statewide, Medicine Services and Procedures placed third in California for total Medicaid spending in 2024.
In the five years ending in 2024, Medicaid payments for Medicine Services and Procedures in Atascadero rose by $2,721,162, a 3381% increase. Some of the sharpest annual jumps occurred in 2022 and 2021.
The citywide spending in the Medicine Services and Procedures group was not evenly distributed, with payments concentrated within a small number of ZIP codes. In 2024, ZIP code 93422 alone represented $2,801,647 in Medicaid payments for the category. This ZIP code was responsible for 100% of total Medicaid dollars spent on Medicine Services and Procedures in Atascadero during the year.
Most Medicaid payments for Medicine Services and Procedures were tied to a small subset of billing codes within the broader category.
Between 2024 and 2023, the 90.3% rise in Medicaid payments for Medicine Services and Procedures in Atascadero considerably outpaced the 40.2% increase seen across all Medicaid claim types in the city for the same time frame.
The Centers for Medicare & Medicaid Services reports that combined state and federal Medicaid spending was about $871.7 billion in fiscal 2023, accounting for nearly 18% of all national health expenses, an increase from $613.5 billion in 2019, before the COVID-19 pandemic.
This growth equals about 40% over several years, mainly due to expanded program enrollment and greater use of medical services during and after the pandemic.
Recently enacted federal budget legislation during the Trump administration included substantial changes to Medicaid funding and its structure. The “One Big Beautiful Bill Act,” which became law in 2025, calls for over $1 trillion in federal Medicaid spending cuts over the next 10 years. The law brings new policies such as work requirements and increased cost-sharing, which could affect coverage and spending for certain beneficiaries. As a result, states are expected to carry more of the cost burden, and limits on federal Medicaid funding growth are anticipated even as the program remains a pillar for millions of Americans.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $80,484 | 1.8% |
| 2021 | $195,224 | 142.6% |
| 2022 | $622,968 | 219.1% |
| 2023 | $1,472,042 | 136.3% |
| 2024 | $2,801,647 | 90.3% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | Medicine Services and Procedures | $2,801,647 | 32.2% |
| 2 | Alcohol and Drug Abuse Treatment | $2,166,507 | 24.9% |
| 3 | National Codes Established for State Medicaid Agencies | $1,757,210 | 20.2% |
| 4 | Evaluation and Management | $1,384,333 | 15.9% |
| 5 | Procedures / Professional Services | $363,870 | 4.2% |
| 6 | Ambulance and Other Transport Services and Supplies | $181,744 | 2.1% |
| 7 | Temporary National Codes (Non-Medicare) | $29,339 | 0.3% |
| 8 | Dental Services | $5,305 | 0.1% |
| 9 | Anesthesia | $4,905 | 0.1% |
| 10 | Vision Services | $4,304 | <0.1% |
| 11 | Pathology and Laboratory Procedures | $12 | <0.1% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| 90837 | Psytx w pt 60 minutes | $1,645,877 | 43 |
| 90834 | Psytx w pt 45 minutes | $322,815 | 20 |
| 90847 | Family psytx w/pt 50 min | $233,960 | 21 |
| 92507 | Tx sp lang voice comm indiv | $169,052 | 31 |
| 97535 | Self care mngment training | $110,204 | 47 |
| 90791 | Psych diagnostic evaluation | $69,796 | 23 |
| 90832 | Psytx w pt 30 minutes | $64,831 | 22 |
| 92508 | Tx sp lang voice comm group | $49,580 | 10 |
| 97140 | Manual therapy 1/> regions | $39,493 | 40 |
| 97110 | Therapeutic exercises | $33,607 | 46 |
| 97533 | Sensory integration | $22,114 | 17 |
| 90792 | Psych diag eval w/med srvcs | $6,275 | 3 |
| 90853 | Group psychotherapy | $5,512 | 5 |
| 92004 | Compre oph exam new pt 1/> | $4,771 | 6 |
| 92551 | Pure tone hearing test air | $4,287 | 4 |
| 96110 | Developmental screen w/score | $4,142 | 4 |
| 92015 | Determine refractive state | $3,224 | 18 |
| 92340 | Fit spectacles monofocal | $2,972 | 9 |
| 97112 | Neuromuscular reeducation | $2,691 | 7 |
| 90785 | Psytx complex interactive | $2,622 | 4 |
Note: HCPCS codes are shown for context within the category. Category totals and rankings in this article are based on standardized service groupings rather than individual billing codes.
Information in this article was obtained from the U.S. Department of Health and Human Services Medicaid Provider Spending database. The source data can be found here.
