Medicaid spending on Medicine Services and Procedures up 34.4% in Covington for 2024

In 2024, Covington Medicaid providers billed $76,368 for services in the Medicine Services and Procedures category, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. This amount was 34.4% higher than 2023, when providers claimed $56,820 for this service category.

Medicaid, a public health insurance program managed by states and funded by both federal and state governments, insures low-income people and families, seniors, children, and individuals with disabilities, making it a significant portion of the U.S. health care system.

Because taxpayer money supports Medicaid payments, shifts in local billing patterns highlight how public funds for health care are used within a community.

The “Medicine Services and Procedures” category encapsulates a range of Medicaid-billed services organized by care type, following standardized HCPCS and CPT code groupings. For this report, each billing code was categorized by consistent code prefixes and number ranges to examine similar services together, prevent duplicate counts, and maintain accurate rankings over time.

Medicine Services and Procedures led all categories in Medicaid payments in Covington in 2024 as overall Medicaid expenses rose across a variety of service categories.

Statewide in Indiana, Medicine Services and Procedures held the second spot for total Medicaid payments in 2024.

Across the five years preceding 2024, Medicaid expenditures related to Medicine Services and Procedures in Covington rose by $76,368, or 0%. More rapid growth occurred in select years, with significant yearly increases noted in 2022 and 2023.

The distribution of spending in this category spanned the city, but most payments were concentrated in relatively few ZIP codes. In 2024, ZIP code 47932 represented $76,367 in payments. This ZIP code alone accounted for 100% of Covington’s Medicaid spending for Medicine Services and Procedures that year.

Within Medicine Services and Procedures, Medicaid payments were focused on a small subset of billing codes.

To compare, from 2023 to 2024, Medicaid payments for Medicine Services and Procedures in Covington grew by 34.4%, matching the percentage increase seen across all Medicaid claim categories in the city for the same timeframe.

The Centers for Medicare & Medicaid Services reports that federally and state-funded Medicaid spending reached about $871.7 billion in fiscal year 2023, making up about 18% of all national health care expenditures, which was a sharp rise from $613.5 billion in 2019, before the COVID-19 pandemic.

This growth of approximately 40% over several years is attributed mainly to higher enrollment figures and increased utilization during and following the pandemic.

Recent federal budget legislation during the Trump administration featured significant recommendations to lower federal Medicaid funding and modify the program. For instance, the “One Big Beautiful Bill Act,” signed in 2025, is projected to reduce federal Medicaid spending by over $1 trillion in the next decade and implements policies like work requirements and higher cost-sharing, potentially reducing coverage and support for certain beneficiaries. These changes are likely to transfer more costs to states and restrain federal Medicaid growth, even though the program continues to serve 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.