Los Angeles Medicaid bills for pathology and lab procedures rise to $73.7 million in 2024

In 2024, Medicaid providers in Los Angeles charged $73,729,299 for services under the Pathology and Laboratory Procedures category, the U.S. Department of Health and Human Services Medicaid Provider Spending database shows. This reflects a 72.7% jump from 2023, when claims for similar services totaled $42,685,556.

Medicaid, which is operated at the state level and jointly financed by federal and state governments, is a public health insurance initiative. The program assists people with low incomes, seniors, children, and those with disabilities—making it a central part of the U.S. health system.

Because Medicaid is funded by taxpayers, local trends in billing reveal how public health resources are used within a community.

The “Pathology and Laboratory Procedures” grouping encompasses Medicaid-billed services based on the type of care, defined by standard HCPCS and CPT code ranges. This analysis assigned each billing code to only one service grouping using uniform code prefixes and ranges, ensuring accurate group comparisons and rankings while preventing duplicate counting.

While there was growth in a range of service categories, Pathology and Laboratory Procedures ranked eighth in Los Angeles by total Medicaid spending in 2024.

Statewide in California, Pathology and Laboratory Procedures placed fifth by total Medicaid payments in 2024.

From 2019 through 2024, Medicaid payments associated with Pathology and Laboratory Procedures in Los Angeles rose by $51,666,988—a 234.2% increase. Certain years, such as 2023 and 2021, saw particularly marked year-over-year gains.

Though spending on Pathology and Laboratory Procedures occurred throughout Los Angeles, most payments were concentrated in a handful of ZIP codes. In 2024, the ZIP code 90066 accounted for $41,015,275, ZIP code 90027 for $7,749,451, and ZIP code 90059 for $4,767,372. Combined, these three ZIP codes made up 72.6% of the city’s Medicaid payments for this service category in 2024.

Within the Pathology and Laboratory Procedures category, a small subset of billing codes accounted for the majority of Medicaid payments.

Between 2024 and 2023, Medicaid spending for Pathology and Laboratory Procedures in Los Angeles rose 72.7%, while citywide Medicaid payments across all claim categories shifted by 12.9% during that period.

According to the Centers for Medicare & Medicaid Services, nationwide Medicaid spending by federal and state governments reached about $871.7 billion in fiscal year 2023. That represented about 18% of the nation’s total health expenditures, up sharply from $613.5 billion in 2019, prior to the COVID-19 pandemic.

This rise marks an almost 40% increase within a few years, largely due to more people enrolling and increased utilization in and after the pandemic era.

Recent federal budget legislation under the Trump administration has introduced major proposals to lower federal Medicaid spending and revise the program’s structure. The “One Big Beautiful Bill Act,” enacted in 2025, is projected to reduce federal Medicaid funds by more than $1 trillion over 10 years. It also adds measures like work requirements and greater cost-sharing, which could reduce benefits and funding for some enrollees. These steps are expected to shift greater costs to states and restrict the growth of federal Medicaid spending, while the program still serves 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.