In 2024, Medicaid providers in Palmdale billed a total of $4,283,022 for services in the National Codes Established for State Medicaid Agencies category, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. This total reflects a 12% rise from 2023, when $3,824,398 was billed for the same services.
Medicaid is a state-administered public health insurance program partially funded by federal and state governments, covering low-income individuals and families, older adults, children, and people with disabilities across the nation.
Since Medicaid payments are delivered using taxpayer funds, fluctuations in billing levels provide insight into how health care dollars are distributed within a local area.
The National Codes Established for State Medicaid Agencies category consists of services coded by type of care, grouped under standardized HCPCS and CPT coding structures. For this report, service categories were assigned using defined code prefixes and numbering sequences to maintain consistent categorization and ensure rankings are accurate over time and double counting is prevented.
Despite an overall increase in Medicaid spending across several categories, the National Codes Established for State Medicaid Agencies category was ranked fifth for total Medicaid payments in Palmdale for 2024.
At the statewide level, the National Codes Established for State Medicaid Agencies category ranked first in California by payment totals in 2024.
Looking at the five years leading up to 2024, Medicaid spending for the National Codes Established for State Medicaid Agencies in Palmdale grew by $3,219,598—a rise of 302.8%. The pace of growth accelerated in certain years, with particularly significant increases in 2023 and 2022.
Across Palmdale, Medicaid spending for these services was not evenly distributed, as most payments were concentrated within a few ZIP codes. In 2024, ZIP code 93550 led with $4,125,861 in payments, followed by 93591 at $83,145 and 93552 at $47,640. Combined, these 3 ZIP codes represented 99.4% of Medicaid payments in this category for the city that year.
Payments within the National Codes Established for State Medicaid Agencies category were also concentrated among relatively few individual billing codes.
Comparing trends, Medicaid payments for this category in Palmdale increased by 12% between 2024 and 2023, while Medicaid payments citywide for all claim categories grew by 25% in the same period.
According to the Centers for Medicare & Medicaid Services, total combined state and federal Medicaid expenditures were approximately $871.7 billion during fiscal year 2023. This spending comprised about 18% of all U.S. health expenditures and marked a sharp rise from $613.5 billion in 2019, prior to the COVID-19 pandemic.
This growth represents an approximately 40% increase over several years, with the primary drivers being greater enrollment and utilization related to and following the pandemic.
Several significant federal budget actions during the Trump administration have aimed to lower federal contributions to Medicaid and alter program structure. For example, the “One Big Beautiful Bill Act,” enacted in 2025, is expected to reduce federal Medicaid spending by over $1 trillion within the next ten years while introducing work requirements and higher cost-sharing, potentially affecting coverage and finances for certain recipients. This could result in a greater financial burden shifting to states and a reduced trajectory of federal Medicaid increases, although the program still serves tens of millions of Americans nationwide.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $1,063,424 | -66.3% |
| 2021 | $1,433,137 | 34.8% |
| 2022 | $2,027,104 | 41.4% |
| 2023 | $3,824,397 | 88.7% |
| 2024 | $4,283,021 | 12% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | Evaluation and Management | $10,727,735 | 21.4% |
| 2 | Anesthesia | $9,839,867 | 19.6% |
| 3 | Medicine Services and Procedures | $7,705,545 | 15.3% |
| 4 | Procedures / Professional Services | $4,810,519 | 9.6% |
| 5 | National Codes Established for State Medicaid Agencies | $4,283,021 | 8.5% |
| 6 | Dental Services | $4,127,636 | 8.2% |
| 7 | Temporary National Codes (Non-Medicare) | $3,506,977 | 7% |
| 8 | Radiology Procedures | $2,058,807 | 4.1% |
| 9 | Pathology and Laboratory Procedures | $1,238,239 | 2.5% |
| 10 | Alcohol and Drug Abuse Treatment | $1,136,568 | 2.3% |
| 11 | Surgery | $397,263 | 0.8% |
| 12 | Drugs Administered Other than Oral Method | $200,189 | 0.4% |
| 13 | Medical And Surgical Supplies | $114,317 | 0.2% |
| 14 | Temporary Codes | $30,388 | 0.1% |
| 15 | Vision Services | $26,447 | 0.1% |
| 16 | Ambulance and Other Transport Services and Supplies | $9,686 | <0.1% |
| 17 | Pathology and Laboratory Services | $3,749 | <0.1% |
| 18 | Durable Medical Equipment | $424 | <0.1% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| T2033 | Res, nos waiver per diem | $2,280,379 | 11 |
| T1015 | Clinic service | $1,149,475 | 23 |
| T4541 | Large disposable underpad | $203,979 | 12 |
| T4523 | Adult size brief/diaper lg | $187,588 | 12 |
| T1017 | Targeted case management | $100,459 | 8 |
| T1001 | Nursing assessment/evaluatn | $97,082 | 12 |
| T2003 | N-et; encounter/trip | $80,843 | 10 |
| T4535 | Disposable liner/shield/pad | $66,852 | 12 |
| T4524 | Adult size brief/diaper xl | $49,845 | 12 |
| T1030 | Rn home care per diem | $28,988 | 2 |
| T1016 | Case management | $19,806 | 14 |
| T4537 | Reusable underpad bed size | $12,626 | 9 |
| T4536 | Reusable pull-on any size | $4,224 | 12 |
| T1013 | Sign lang/oral interpreter | $870 | 1 |
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.
