Medicine Services and Procedures led Moody Medicaid payments with $33,853 in 2024

In 2024, Medicaid providers in Moody reported $33,853 in billings for services categorized as Medicine Services and Procedures, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. This represented a 12.6% increase over 2023, when providers submitted $30,061 for the same services.

Medicaid, operated by states and jointly funded by federal and state governments, serves low-income individuals and families, seniors, children, and those with disabilities and remains one of the largest health care programs in the U.S.

As Medicaid payments are supported by taxpayers, local billing trends reflect the allocation of public health care resources within the community.

The “Medicine Services and Procedures” category comprises a specific set of Medicaid claims distinguished by standardized HCPCS and CPT code segments. For this study, each billing code was grouped under a single service category by common code prefixes and number ranges. This method allows for consistent comparison and prevents duplicated counts over different years.

Though Medicaid spending rose in several service categories, Medicine Services and Procedures represented the highest total for Medicaid payments in Moody during 2024.

Statewide in Alabama, Medicine Services and Procedures placed fourth by total Medicaid payments in 2024.

Between 2019 and 2024, Moody’s Medicaid payments for Medicine Services and Procedures grew by $11,811 (53.6%). The area experienced especially strong increases in certain years, including in 2021 and 2023.

Spending in this category, while present citywide, was focused in a few ZIP codes. For 2024, ZIP code 35004 reported $33,853 in Medicaid payments for Medicine Services and Procedures. Altogether, this ZIP accounted for all Medicaid outlays in this category within Moody.

Most of the Medicaid spending on Medicine Services and Procedures centered on several key billing codes.

Compared to the overall 7.4% change across Medicaid claim categories in Moody for 2024, Medicine Services and Procedures saw a larger increase at 12.6% over the period from 2023 to 2024.

The Centers for Medicare & Medicaid Services reports that combined federal and state Medicaid spending hit about $871.7 billion in fiscal year 2023, making up roughly 18% of national health expenditures — a significant jump from $613.5 billion in 2019, prior to the COVID-19 public health emergency.

This growth totals approximately 40% in just several years, mainly due to rising enrollment and higher service use during and after the pandemic.

Recent federal budget measures passed under the Trump administration include plans aiming to reduce federal Medicaid spending and revamp the program. The “One Big Beautiful Bill Act,” enacted in 2025, is anticipated to cut federal Medicaid funds by over $1 trillion across 10 years. It sets out policies such as work requirements and larger cost-sharing responsibilities, which could decrease coverage and federal funds for some participants. These developments are expected to transfer more Medicaid program expenses to the states and may restrain federal Medicaid growth, even with the program still serving tens of millions nationally.

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.