Medicaid spending for Medicine Services and Procedures climbs 43% in Scotts Valley in 2024

In 2024, Scotts Valley Medicaid providers billed $96,387 for services classified under the Medicine Services and Procedures category, as reported by the U.S. Department of Health and Human Services Medicaid Provider Spending database. This represented a 42.7% jump from 2023, when providers billed $67,557 for similar services.

Medicaid, a public health insurance program, is administered by states and funded jointly by federal and state governments. It provides coverage for low-income residents, seniors, children, and people with disabilities, making it a major component of the U.S. health care landscape.

As Medicaid payments are funded through public dollars, changes in billing patterns at the local level illustrate how health care resources are distributed within the community.

The “Medicine Services and Procedures” category encompasses a range of Medicaid-billed services grouped by care type, using standardized HCPCS and CPT code guidelines. For this review, each billing code was categorized under a single service group, with consistent code prefixes and numeric ranges applied to ensure accurate rankings and to prevent double counting.

While several service categories saw increased Medicaid spending, Medicine Services and Procedures held the No. 2 spot in total Medicaid payments in Scotts Valley for 2024.

Statewide, in California, Medicine Services and Procedures placed third by total Medicaid payment volume in 2024.

From 2019 through 2024, Medicaid payments for Medicine Services and Procedures in Scotts Valley rose by $15,947, an increase of 19.8%. Certain intervals during this span saw particularly rapid growth, with sharp year-over-year increases in 2021 and 2022.

Despite being available across the city, the majority of Medicaid payments in the Medicine Services and Procedures category were concentrated in just a few ZIP codes. In 2024, ZIP code 95066 alone accounted for $96,386, representing 100% of these payments within Scotts Valley for the year.

Medicaid payments in this category were also focused around a small subset of individual billing codes.

Medicaid payments for Medicine Services and Procedures in Scotts Valley grew by 42.7% from 2023 to 2024. By comparison, all Medicaid claim categories in the city saw an increase of 10.7% during this time frame.

According to the Centers for Medicare & Medicaid Services, federal and state Medicaid expenditures totaled about $871.7 billion for fiscal year 2023. That accounted for nearly 18% of national health outlays, a significant rise from $613.5 billion in 2019 before the COVID-19 pandemic.

This change reflects about 40% growth within several years, propelled largely by increased enrollment and service use during and after the pandemic.

Recent federal budget measures enacted under the Trump administration have included major plans to curtail federal Medicaid funding and reshape how the program operates. The “One Big Beautiful Bill Act,” signed into law in 2025, is expected to trim over $1 trillion in federal Medicaid funding over 10 years and bring changes such as work requirements and higher cost-sharing. These policies may decrease coverage and funding for some enrollees, shifting more costs to states and slowing future federal Medicaid growth, even as the program continues to cover tens of millions of Americans.

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.