Daphne sees 21.1% increase in Medicaid spending for Medicine Services and Procedures in 2024

In 2024, Medicaid providers in Daphne billed $1,067,117 for services under the Medicine Services and Procedures category, based on data from the U.S. Department of Health and Human Services Medicaid Provider Spending database. This was a 21.1% increase over 2023, when providers submitted $880,891 in claims for the same group of services.

Medicaid is a public insurance program managed by the states and funded with joint state and federal dollars. The program covers low-income individuals and families, seniors, children, and people with disabilities, playing a significant role in the U.S. health care system.

Since Medicaid relies on taxpayer funding, shifts in local billing reflect how public health resources are distributed across communities.

The “Medicine Services and Procedures” category is defined by the type of care and is organized under standardized HCPCS and CPT code groupings. In this analysis, each billing code was assigned to its corresponding service category using uniform code prefixes and numeric ranges. This method ensures related services are grouped together without double counting, maintaining accurate year-over-year rankings.

Although several Medicaid service categories experienced rising spending, Medicine Services and Procedures topped the list in Daphne for total Medicaid payments in 2024.

Statewide in Alabama, Medicine Services and Procedures was the fourth-highest category by total Medicaid payments in 2024.

Over the five years leading up to 2024, Medicaid payments for Medicine Services and Procedures in Daphne rose by $697,382, or 188.6%. The rate of increase accelerated during selected periods, with substantial annual growth during 2023 and 2021.

Payments for Medicine Services and Procedures were distributed citywide but heavily concentrated in a small number of ZIP codes. In 2024, ZIP code 36526 accounted for $1,067,116, representing 100% of Medicaid payments for this category in Daphne over the year.

Within this group, most Medicaid payments were tied to a relatively small set of billing codes.

Comparatively, Medicaid payments linked to Medicine Services and Procedures in Daphne rose by 21.1% from 2023 to 2024, whereas all Medicaid claim categories increased by 4.9% citywide in the same period.

According to the Centers for Medicare & Medicaid Services, total federal and state Medicaid spending reached approximately $871.7 billion in fiscal year 2023, making up about 18% of national health expenditures, a sharp rise from $613.5 billion in 2019 before the COVID-19 pandemic.

This jump equals about 40% growth in just several years, largely due to expanded enrollment and increased service use during and following the pandemic.

Recent federal budget laws enacted during the Trump administration have included major proposals aimed at reducing federal Medicaid contributions and changing the program’s structure. For instance, the “One Big Beautiful Bill Act,” signed in 2025, is expected to reduce federal Medicaid spending by more than $1 trillion over a decade and introduces work requirements and greater cost-sharing, which could decrease coverage and funds for certain beneficiaries. These measures are set to shift greater costs to states and constrain the growth of federal Medicaid support, even though the program continues to cover tens of millions of Americans.

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.