Redlands sees 14.6% increase in Medicaid payments for Medicine Services and Procedures in 2024

Medicaid providers in Redlands billed $25,080,588 for care categorized as Medicine Services and Procedures in 2024, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. This total increased by 14.6% compared to 2023, when billed claims for this category amounted to $21,878,757.

Medicaid is a state-administered public health insurance program, jointly funded by state and federal resources. It provides coverage to low-income individuals, including families, older adults, children, and people with disabilities, and remains a major component of the U.S. health care system.

Since Medicaid is funded by taxpayer dollars, changes in local Medicaid billing illustrate how public health funds are spent in the community.

The Medicine Services and Procedures category refers to a set of Medicaid-billed care types defined by service, using standardized HCPCS and CPT code groupings. For this analysis, codes were grouped into single service categories based on shared code prefixes and number ranges. This approach enables comparison of similar services, avoids double counting, and supports consistent ranking year to year.

While spending rose across multiple categories, Medicine Services and Procedures represented the second-largest Medicaid payment category in Redlands in 2024.

Statewide in California, Medicine Services and Procedures ranked third among all service categories by Medicaid payments in 2024.

From 2019 through 2024, Medicaid payments related to Medicine Services and Procedures in Redlands climbed by $13,731,424, up 121%. Periods of especially strong growth were seen in 2021 and 2023.

Payments for care in the Medicine Services and Procedures category were not evenly distributed through the city, instead clustering in a few ZIP codes. In 2024, ZIP code 92373 accounted for $14,023,424 and ZIP code 92374 for $11,057,163 in Medicaid payments, with these two areas making up all payments in this category that year.

Within this category, Medicaid reimbursements were further concentrated in relatively few billing codes.

For comparison, Redlands saw Medicaid payments for Medicine Services and Procedures rise 14.6% between 2024 and 2023. Across all Medicaid claim categories in the city, there was a citywide 18% change during that period.

The Centers for Medicare & Medicaid Services reports that combined federal and state Medicaid spending reached about $871.7 billion in fiscal year 2023, making up about 18% of total U.S. health expenditures, a significant rise from roughly $613.5 billion in 2019, prior to the COVID-19 pandemic.

That increase equates to overall growth of about 40% in several years, primarily due to expanded program enrollment and greater service use during and after the pandemic.

Recent federal budget laws enacted under the Trump administration have included major plans to reduce federal Medicaid contributions and alter the program’s structure. The “One Big Beautiful Bill Act,” passed in 2025, is expected to reduce federal Medicaid spending by more than $1 trillion over the next 10 years, bringing measures such as work requirements and increased cost-sharing that could curtail coverage and funding for certain recipients. As a result, more responsibility for funding could shift to states, which may restrict federal growth even though Medicaid continues to serve tens of millions nationwide.

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.