Medicaid payments linked to National Codes in South San Francisco climb 19.9% in 2024

In 2024, Medicaid providers in South San Francisco billed $4,133,273 for services within the National Codes Established for State Medicaid Agencies category, the U.S. Department of Health and Human Services Medicaid Provider Spending database shows. This amount represents a 19.9% rise from 2023, when claims for the same services totaled $3,447,255.

Medicaid is a government health insurance program administered by states and funded together by federal and state governments. It provides coverage for low-income residents, including families, seniors, children and people with disabilities, and remains one of the largest elements in the U.S. health care system.

As Medicaid relies on taxpayer funding, shifts in local billing patterns reflect updated allocations of public health care funding in a given area.

The “National Codes Established for State Medicaid Agencies” category includes a set of Medicaid services categorized by the type of care delivered, based on established HCPCS and CPT code groupings. Each billing code for this analysis was placed into a service category using standardized code prefixes and ranges. This approach groups related services together, avoids double counting, and ensures accuracy in tracking changes over time.

While Medicaid expenditures went up in several service categories, National Codes Established for State Medicaid Agencies finished second for total Medicaid payments in South San Francisco in 2024.

Statewide in California, National Codes Established for State Medicaid Agencies led in total Medicaid payments in 2024.

From five years prior to 2024, Medicaid payments connected to the National Codes Established for State Medicaid Agencies category rose by $1,583,848, or 62.1%, in South San Francisco. Spending growth quickened in certain years, with notable annual increases in 2023 and 2020.

Though spending on care in the National Codes Established for State Medicaid Agencies category occurred throughout South San Francisco, the majority of payments were recorded in a small group of ZIP codes. For 2024, ZIP code 94080 saw the highest Medicaid payments under this category, at $4,133,272. The leading ZIP code represented 100% of all Medicaid outlays tied to this category in South San Francisco for the year.

Medicaid payments within the National Codes Established for State Medicaid Agencies category also centered on a limited selection of specific billing codes.

Comparing increases, Medicaid payments tied to this category grew 19.9% in South San Francisco from 2023 to 2024, while all Medicaid claim categories citywide rose 3.9% over the same period.

Data from the Centers for Medicare & Medicaid Services shows that combined federal and state Medicaid expenditures reached approximately $871.7 billion in fiscal year 2023, about 18% of all national health spending. That figure is up sharply from roughly $613.5 billion in 2019, before the COVID-19 pandemic.

This represents growth of about 40% in just a few years, largely due to increased enrollment and utilization during and after the pandemic.

The Trump administration signed federal budget legislation in 2025 with major plans to reduce federal Medicaid funding and overhaul the program. The “One Big Beautiful Bill Act,” for example, is estimated to cut over $1 trillion from federal Medicaid spending over the next decade. It introduces work requirements and higher cost-sharing, potentially reducing coverage and funding for some recipients. These policy updates are expected to increase the financial burden on states and restrain the growth of federal Medicaid support, while 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.