Medicaid payments for National Codes Established for State Medicaid Agencies soar to $27,620 in Foster City for 2024

Foster City Medicaid providers submitted $27,620 in claims for services under the National Codes Established for State Medicaid Agencies in 2024, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. This represented an increase of 776.8% over 2023, when $3,150 was billed under the same service category.

Medicaid, a government health insurance initiative managed by states and jointly funded by federal and state governments, covers eligible low-income individuals and families, seniors, children and people with disabilities, making it a core part of the U.S. health care landscape.

Because Medicaid payments are supported by taxpayers, shifts in billing amounts indicate changes in how each community allocates public health care resources.

The National Codes Established for State Medicaid Agencies category includes a set of services billed under Medicaid that are defined by the type of care, structured by standardized HCPCS and CPT code groupings. In this review, each billing code was grouped into a single service category using uniform code prefixes and number ranges, which allowed analysts to track related services, avoid double counting and maintain accurate rankings year over year.

While multiple service categories saw higher Medicaid spending, National Codes Established for State Medicaid Agencies was the fifth-largest by total payments in Foster City for 2024.

Across California, the National Codes Established for State Medicaid Agencies category ranked first statewide by total Medicaid payments in 2024.

Between 2020 and 2024, Medicaid payments for this specific category in Foster City grew by $27,453, equating to a 16448.8% increase. There were significant acceleration periods, particularly in 2021 and 2022, marked by large year-over-year gains.

Spending on these services was present throughout Foster City but was most heavily concentrated within a few ZIP codes. In 2024, ZIP code 94404 made up the full $27,620 billed, accounting for 100% of Medicaid payments linked to the National Codes Established for State Medicaid Agencies in the city that year.

Payments associated with this category of care centered on a small subset of billing codes within Medicaid.

For context, the 776.8% increase for this category in Foster City from 2023 to 2024 compares with a 35.1% rise across all categories of Medicaid spending in the city over the same timeframe.

According to the Centers for Medicare & Medicaid Services, total federal and state Medicaid spending was about $871.7 billion in fiscal year 2023, representing roughly 18% of all national health expenditures. This total rose sharply from about $613.5 billion in 2019, prior to the COVID-19 pandemic.

The increase is around 40% over several years and is primarily attributed to expanded enrollment and increased service usage during and following the pandemic.

Federal budget legislation enacted during the Trump administration introduced major Medicaid funding reduction provisions and restructuring efforts. The “One Big Beautiful Bill Act,” signed in 2025, aims to cut more than $1 trillion from federal Medicaid spending over ten years and brings in new policies like work requirements and higher cost-sharing, potentially limiting coverage and federal funding for some recipients. These measures are expected to transfer more financial responsibility to states and restrain federal Medicaid spending growth, even as the program continues serving millions of people 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.