Medicaid spending on Medicine Services and Procedures surges 445.6% in New Market for 2024

Providers participating in Medicaid in New Market billed $31,559 for Medicine Services and Procedures in 2024, based on figures from the U.S. Department of Health and Human Services Medicaid Provider Spending database. That figure represents a 445.6% rise over 2023, when claims for this service category totaled $5,784.

Medicaid, administered by states and funded jointly by federal and state governments, serves low-income families and individuals, seniors, children and people with disabilities, making it a core component of U.S. health care.

Since Medicaid funding is derived from taxpayer dollars, shifts in local billings provide insight into how health care resources are distributed within communities.

The Medicine Services and Procedures classification includes a range of Medicaid-billed services defined by certain standardized HCPCS and CPT code groupings. For this report, each medical billing code was assigned uniquely to a service category based on code prefix and range, permitting related services to be analyzed collectively while avoiding duplicate counting and preserving consistent rankings year over year.

While Medicaid outlays rose in multiple service segments, Medicine Services and Procedures led all categories in total Medicaid payments in New Market for 2024.

Statewide in Tennessee, Medicine Services and Procedures ranked as the fifth-highest category by Medicaid payment volume for the same year.

During the five-year period prior to 2024, Medicaid payments linked to Medicine Services and Procedures in New Market grew by $31,559, or 0%. In certain years, spending growth accelerated, with notable increases occurring in 2023 and 2022.

Although services in the Medicine Services and Procedures grouping were billed across New Market, most Medicaid payments were concentrated in a few ZIP codes. The 37820 ZIP code recorded $31,559 in 2024 Medicaid payments for this category, accounting for 100% of the city’s total in this segment for the year.

Payments within the Medicine Services and Procedures segment were also focused within a limited set of specific billing codes.

Comparatively, Medicaid spending on Medicine Services and Procedures in New Market increased 445.6% from 2023 to 2024, a jump that mirrors the overall percentage change for all Medicaid claim categories citywide in the same period.

According to the Centers for Medicare & Medicaid Services, combined federal and state outlays for Medicaid reached approximately $871.7 billion in fiscal year 2023, making up nearly 18% of total national health expenditures. That figure is up sharply from about $613.5 billion in 2019, prior to the COVID-19 pandemic.

This increase amounts to about 40% growth in recent years, largely attributed to higher enrollment and utilization during and after the pandemic.

Recent federal budget policies under the Trump administration have proposed major reductions to federal Medicaid support and program restructuring. The “One Big Beautiful Bill Act,” enacted in 2025, is projected to lower federal Medicaid spending by over $1 trillion across the next decade and contains provisions such as work requirements and increased cost-sharing, which may decrease coverage and funding for some recipients. These adjustments are expected to push more costs onto states and curb federal growth, even as Medicaid continues to cover tens of 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.