Daly City Medicaid bills for Medicine Services and Procedures hit $7,800,242 in 2024

Data from the U.S. Department of Health and Human Services Medicaid Provider Spending database show that Medicaid providers in Daly City submitted $7,800,242 in claims for Medicine Services and Procedures in 2024. This represents a 31.6% increase over 2023, when $5,927,266 was billed for the same category.

Medicaid is a public health insurance initiative that operates through state administration and is funded jointly by the federal and state governments. It provides coverage for low-income groups, including families, seniors, children and people with disabilities, and constitutes a major component of the U.S. health care system.

Because payments made by Medicaid are taxpayer funded, fluctuations in billing at the local level reflect the distribution of public health care funding in the community.

The “Medicine Services and Procedures” group consists of Medicaid-billed services identified by the care provided, organized using standard HCPCS and CPT code ranges. For these figures, each code is attributed to a single service category based on numeric groupings, enabling related services to be tracked together without duplication, maintaining data accuracy over time.

Spending increases were noted in several categories, but Medicine Services and Procedures ranked second for total Medicaid dollars paid in Daly City in 2024.

Statewide in California, Medicine Services and Procedures was the third-leading category in terms of Medicaid payments for 2024.

From 2019 through 2024, Medicaid payments for Medicine Services and Procedures in Daly City rose by $2,591,706, amounting to a 49.8% increase. Certain periods within those years saw accelerated spending growth, with strong year-over-year increases in both 2023 and 2020.

While Medicaid spending for this category occurred citywide, the majority was concentrated in a small group of ZIP codes. In 2024, the ZIP code 94015 accounted for $4,111,579 of Medicaid payments, while 94014 represented $3,688,661. Taken together, these 2 ZIP codes made up 100% of the city’s Medicaid expenditures for the Medicine Services and Procedures category during the year.

Payment distribution within the Medicine Services and Procedures group also concentrated on a small number of specific billing codes.

For context, Medicaid payments for Medicine Services and Procedures in Daly City climbed by 31.6% from 2023 to 2024, in contrast to a 2.6% increase for all Medicaid categories in the city over the same period.

According to the Centers for Medicare & Medicaid Services, total federal and state Medicaid expenditures reached around $871.7 billion in the 2023 fiscal year, representing about 18% of all U.S. health expenditures. This reflects a significant rise from approximately $613.5 billion in 2019, before the onset of the COVID-19 pandemic.

The data shows this is roughly a 40% increase in a few years, primarily due to expanded enrollment and higher usage during and after the pandemic.

Recent federal budget measures passed during the Trump administration have included major proposals aimed at reducing federal Medicaid spending and changing the program’s structure. The “One Big Beautiful Bill Act,” enacted in 2025, is anticipated to cut more than $1 trillion in federal Medicaid spending over 10 years and brings in policies like work requirements and higher cost-sharing, which may lower coverage and funding for some beneficiaries. These adjustments are likely to increase the share of costs borne by states and curb federal Medicaid growth, as the program continues to serve tens of millions nationwide.

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.