Medicaid spending for procedures and professional services jumps 37.7% in Lafayette in 2024

Lafayette Medicaid providers billed a total of $2,728,569 in 2024 for the Procedures / Professional Services category, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. This represents a 37.7% rise from 2023, when providers submitted $1,981,434 in claims for identical services.

Medicaid, a public health insurance initiative administered by individual states with joint federal and state funding, covers low-income people, seniors, children, and those with disabilities, making it a significant part of the nation’s health care system. Additional information can be found at the Commonwealth Fund explainer.

Local changes in Medicaid payment levels reflect how taxpayer-funded health care resources are distributed throughout the community.

The “Procedures / Professional Services” group includes several types of Medicaid-billed services, identified by standardized HCPCS and CPT code sets. In this analysis, each billing code was assigned to a distinct category using set code prefixes and numeric ranges. This method prevents duplicate counts and maintains precise tracking and comparisons year over year.

Although increases were seen across multiple categories, Procedures / Professional Services ranked fourth in total Medicaid payments for Lafayette during 2024.

The Procedures / Professional Services category held the fifth spot among all payment categories in Indiana for 2024.

Between 2019 and 2024, Medicaid payments associated with Procedures / Professional Services in Lafayette grew by $2,690,926, a jump of 7148.5%. Certain years saw especially fast growth, particularly with significant increases in both 2023 and 2022 compared to previous periods.

While these services were provided citywide, the highest payments were concentrated within a handful of ZIP codes. For 2024, ZIP code 47905 saw the largest Medicaid payments related to this category at $2,725,097, followed by 47904 at $3,470, and 47901 with $0. Collectively, the top 3 ZIP codes comprised the entire Medicaid spending for Procedures / Professional Services in Lafayette for the year.

Within the same category, a limited set of billing codes accounted for most payments.

To compare, Medicaid payments tied to the Procedures / Professional Services category in Lafayette increased 37.7% between 2023 and 2024, while overall Medicaid claims in the city rose by 35.8% during the same timeframe.

Centers for Medicare & Medicaid Services data show that federal and state Medicaid spending reached nearly $871.7 billion in fiscal year 2023, representing around 18% of total national health expenditures. That figure has climbed sharply from about $613.5 billion in 2019, prior to the COVID-19 outbreak.

This nearly 40% increase over a few years was mainly driven by expanded enrollment and greater usage during and after the pandemic period.

Recent federal budget measures during the Trump administration have included significant proposals to reduce federal Medicaid funding and reshape the program’s structure. For instance, the “One Big Beautiful Bill Act,” enacted in 2025, is expected to cut over $1 trillion in federal Medicaid outlays over the next 10 years and brings policies such as work requirements and higher cost-sharing, which may decrease coverage and funding for some users. These changes could shift more financial responsibility to states, curbing federal Medicaid growth as the program continues to serve millions of Americans.

Note: HCPCS codes shown indicate context within the service category. All totals and rankings here are based on standard service groupings rather than specific billing codes.

The figures in this report are sourced from the U.S. Department of Health and Human Services Medicaid Provider Spending database, accessible here.