San Mateo sees $17,164,734 in Medicaid payments for Medicine Services and Procedures in 2024

In 2024, San Mateo Medicaid providers billed $17,164,734 for services categorized as Medicine Services and Procedures, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. This represented a 19.3% rise over 2023, when claims totaled $14,387,968 for the same services.

Medicaid is a public health insurance initiative overseen by individual states and financed through a partnership of federal and state governments. The program serves low-income individuals and families, seniors, children, and people with disabilities, making it a fundamental component of the U.S. health care landscape.

Since Medicaid funding is sourced from taxpayers, variations in local billing highlight how public health resources are distributed in each community.

The “Medicine Services and Procedures” category includes a defined set of Medicaid-billed services organized by the type of care delivered, using standardized HCPCS and CPT code clusters. For this analysis, every billing code was allocated to a single service category based on code prefixes and number ranges, enabling consistent grouping—so related services could be tracked over time without double counting, ensuring accurate annual rankings.

While Medicaid expenditures grew in several service categories, Medicine Services and Procedures ranked fourth in total Medicaid payments for San Mateo in 2024.

Statewide, Medicine Services and Procedures was the third-largest Medicaid payment category in California in 2024.

During the five years prior to 2024, Medicaid payments associated with Medicine Services and Procedures in San Mateo grew by $12,896,460, or 302.1%. Certain periods saw accelerated spending, notably in 2022 and 2023, with substantial year-over-year increases.

Spending on Medicine Services and Procedures was distributed throughout San Mateo, but payments were focused in a handful of ZIP codes. In 2024, ZIP code 94403 saw the largest total—$16,609,864—followed by 94401, which received $358,366, and 94404, which recorded $192,372. Combined, these top 3 ZIP codes accounted for 100% of Medicaid payments for the Medicine Services and Procedures category in San Mateo.

Within this category, Medicaid reimbursement was highly concentrated among a small set of billing codes.

To provide perspective, San Mateo’s Medicaid payments for Medicine Services and Procedures grew by 19.3% between 2024 and 2023, compared to an 8.7% change across all claim categories locally during the same period.

The Centers for Medicare & Medicaid Services reports that combined federal and state Medicaid expenditures reached about $871.7 billion in fiscal year 2023, making up roughly 18% of all national health care spending. This is up significantly from $613.5 billion in 2019, before the onset of the COVID-19 pandemic.

This jump marks an increase of approximately 40% over just a few years, primarily due to expanded enrollment and greater utilization during and after the pandemic phase.

Recent federal budget measures during the Trump administration have brought forward major proposals to reduce federal Medicaid contributions and reshape the program. Notably, the “One Big Beautiful Bill Act,” signed in 2025, is set to reduce more than $1 trillion in federal Medicaid spending over the next decade and adds policies such as work requirements and increased cost-sharing. These changes could result in reduced coverage and funding for some beneficiaries, shifting additional costs to states and slowing federal Medicaid growth, though the program continues to support tens of millions of Americans.

Note: HCPCS codes are provided for category context. Category totals and rankings in this report are derived from standardized service groupings, not individual billing codes.

This article’s information comes from the U.S. Department of Health and Human Services Medicaid Provider Spending database. Source data is available here.