Medicaid payments for Medicine Services and Procedures climb to $398,580,366 in Los Angeles in 2024

In 2024, providers participating in Medicaid in Los Angeles billed a total of $398,580,366 for services grouped under the Medicine Services and Procedures category, figures from the U.S. Department of Health and Human Services Medicaid Provider Spending database show. This represents a jump of 21.3% over 2023, when $328,689,096 was billed for these services in the area.

Medicaid operates as a public health coverage program run by states and funded in partnership with federal and state governments. Serving low-income people and families, older adults, children and people with disabilities, it ranks among the nation’s largest health care programs.

Given that Medicaid spending comes from taxpayer resources, fluctuations in community billing reflect changes in how health care funds are distributed locally.

The “Medicine Services and Procedures” grouping encompasses a set of Medicaid-billed services characterized by the care provided, using established HCPCS and CPT code ranges. For this report, billing codes were mapped to a single service category based on organized prefixes and related numbers, preventing overlap and ensuring comparisons retain their accuracy over time.

Medicaid spending was up in several categories, with Medicine Services and Procedures ranking as the second-largest category in total payments in Los Angeles for 2024.

On the statewide level, Medicine Services and Procedures held third place by total Medicaid payment amount in California during 2024.

Across the five years before 2024, local Medicaid payments for Medicine Services and Procedures rose by $313,549,011, amounting to a 368.7% increase. Periods of especially fast growth were seen, including notable year-to-year jumps in both 2023 and 2020.

Although payments in this category occurred throughout Los Angeles, higher concentrations appeared in a select number of ZIP codes. The most significant Medicaid payments in 2024 came from ZIP codes 90020 ($292,540,845), 90027 ($15,585,937), and 90003 ($10,385,592). Together, these 3 areas made up 79.9% of all payments linked to Medicine Services and Procedures in Los Angeles for the period.

Within the overall category, billings were concentrated into a limited range of specific billing codes.

Comparing payment growth, the 21.3% increase for Medicine Services and Procedures in Los Angeles between 2023 and 2024 outpaced a 12.9% growth recorded for all Medicaid claim categories citywide over the same period.

Data from the Centers for Medicare & Medicaid Services indicate that combined federal and state Medicaid spending reached approximately $871.7 billion in fiscal year 2023, which was about 18% of all national health expenditures, up from around $613.5 billion in 2019 before the pandemic.

This change amounts to roughly 40% growth over several years, much of it stemming from increased enrollment and greater use during and following the pandemic.

Recent Congressional budget actions under the Trump administration approved significant cuts to federal Medicaid funding and altered its structure. The “One Big Beautiful Bill Act,” signed in 2025, is projected to reduce federal Medicaid expenditures by more than $1 trillion in the next 10 years, establishing mandates such as work requirements and higher cost-sharing that may reduce coverage or funding for certain recipients. These changes are expected to shift more fiscal responsibility to states and potentially slow the federal share of Medicaid program growth, even while the program supports tens of millions nationwide.

Note: HCPCS codes are displayed for reference within the category. Overall category figures and rankings in this story are based on standardized service groupings as opposed to individual codes.

The information for this story comes from the U.S. Department of Health and Human Services Medicaid Provider Spending database, with source data accessible here.