Data from the U.S. Department of Health and Human Services Medicaid Provider Spending database indicate Medicaid providers in Hermitage billed $3,423 for services in the Medicine Services and Procedures category in 2024. That represents a 17.1% rise versus 2023, when claims for similar services totaled $2,922.
Medicaid, one of the primary programs in the U.S. health care system, is a public insurance initiative managed by the states and funded jointly by federal and state governments. It provides coverage to low-income individuals and families, children, seniors, and people with disabilities.
Alterations in local Medicaid billing mirror how tax-funded health dollars are allocated in each community.
The “Medicine Services and Procedures” group is defined using standardized HCPCS and CPT code prefixes and ranges. Each code was assigned to a specific service group in the analysis, enabling a consistent review of related services with accurate observations across different periods and without duplications.
While multiple Medicaid service classes showed increased spending, Medicine Services and Procedures had the highest Medicaid payment total for Hermitage in 2024.
At the state level in Arkansas, the Medicine Services and Procedures category was the second-highest recipient of Medicaid payments during 2024.
During the five years through 2024, Hermitage saw Medicaid payments for Medicine Services and Procedures advance $11,330, or 76.8%. Certain years—such as 2020 and 2022—saw a marked acceleration in year-over-year spending gains.
Spending in this category was distributed citywide, but payment concentrations remained high in specific ZIP codes. In 2024, the largest payment volume was for ZIP code 71647, which totaled $3,423. Collectively, the top single ZIP code comprised 100% of Hermitage Medicaid payments for Medicine Services and Procedures that year.
Within the category itself, a limited set of billing codes dominated Medicaid payment totals.
To put the 17.1% increase between 2024 and 2023 in perspective, payments for Medicine Services and Procedures climbed more moderately than the 34.7% growth across all Medicaid claim categories in Hermitage that same period.
According to the Centers for Medicare & Medicaid Services, federal and state Medicaid spending combined reached roughly $871.7 billion in the 2023 fiscal year, about 18% of nationwide health expenditures. That is a significant jump from $613.5 billion in 2019, prior to the COVID-19 pandemic onset.
This growth amounts to approximately 40% over a few years, mainly fueled by increased enrollment and greater use of services during and following the pandemic.
Bills affecting Medicaid funding have included major measures to reshape the program in recent years. The “One Big Beautiful Bill Act,” signed into law in 2025 under the Trump administration, is set to reduce federal Medicaid outlays by more than $1 trillion over 10 years and incorporates added work requirements plus higher cost-sharing. These changes are expected to push more expenses onto states and curb the expansion of federal Medicaid aid, although the program will still serve tens of millions of Americans.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $14,753 | 14.9% |
| 2021 | $14,203 | -3.7% |
| 2022 | $3,297 | -76.8% |
| 2023 | $2,922 | -11.4% |
| 2024 | $3,423 | 17.1% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | Medicine Services and Procedures | $3,423 | 10<0.1% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| 92508 | Tx sp lang voice comm group | $3,423 | 5 |
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.
