South San Francisco Medicaid spending on medicine services reaches $2,378,796 in 2024

In 2024, Medicaid providers in South San Francisco submitted $2,378,796 in claims for services in the Medicine Services and Procedures category, based on data from the U.S. Department of Health and Human Services Medicaid Provider Spending database. This was a 29.1% rise compared with 2023, when providers billed $1,842,657 for the same services.

Medicaid is a state-administered health coverage program funded in partnership between federal and state governments. The program supports low-income individuals and families, children, seniors, and those with disabilities, making it one of the primary components of health care in the U.S.

Because Medicaid funding is sourced from taxpayers, trends in local claims levels reflect the way public health care money is allocated in a given community.

The “Medicine Services and Procedures” category represents a set of Medicaid claims defined by care type, grouped using standard HCPCS and CPT code conventions. Each billing code involved in this analysis was placed into a single service group based on standardized numeric codes and prefixes, ensuring related services were aggregated for review while avoiding double counting and supporting precise rankings over various years.

Though overall Medicaid outlays increased across different service groups, Medicine Services and Procedures stood as the fourth largest category by total Medicaid claims in South San Francisco for 2024.

Statewide, Medicine Services and Procedures placed third in California based on total Medicaid spending in 2024.

Over the five-year span through 2024, Medicaid payouts for Medicine Services and Procedures in South San Francisco grew by $1,267,196, or 114%. Growth accelerated at several points, notably in 2023 and 2021, with year-to-year increases.

Spending on Medicine Services and Procedures was present throughout the city, but it was mainly focused in a few ZIP codes. In 2024, the largest Medicaid payments for this category were tied to ZIP code 94080, with $2,378,796. The top ZIP code accounted for 100% of these Medicaid claims in South San Francisco during this period.

Within the category, a small segment of distinct billing codes represented the majority of Medicaid payments.

Comparatively, while Medicaid payments linked to Medicine Services and Procedures in South San Francisco rose by 29.1% from 2023 to 2024, payments across all Medicaid claim categories in the city increased by 3.9% during the same frame.

According to the Centers for Medicare & Medicaid Services, combined state and federal Medicaid costs reached approximately $871.7 billion in fiscal year 2023, making up about 18% of total U.S. health expenditures. That’s a sharp rise from the roughly $613.5 billion recorded in 2019, ahead of the COVID-19 pandemic.

This jump equates to an increase of about 40% over a few years, mostly driven by expanded enrollment and higher use of benefits during and following the pandemic.

Recent federal budget acts under the Trump administration contain sweeping measures to slash federal Medicaid funding and modify the structure of the program. For instance, the “One Big Beautiful Bill Act,” signed into law in 2025, is expected to reduce federal Medicaid outlays by over $1 trillion over 10 years, incorporating work requirements and increased cost-sharing that may lower benefits and funding for certain groups. These steps are projected to push more expenses to states and curtail federal Medicaid growth, while tens of millions of Americans remain covered by the program.

Note: HCPCS codes are provided for reference within the category. This article’s totals and rankings are based on standardized service groups, not individual code totals.

Details in this story come from the U.S. Department of Health and Human Services Medicaid Provider Spending database. The source data is available here.