Aberdeen Medicaid providers submitted $6,182,866 in claims for Alcohol and Drug Abuse Treatment services in 2024, according to U.S. Department of Health and Human Services Medicaid Provider Spending data. This reflects an 18.5% rise compared with 2023, when claims for these services totaled $5,217,145.
Medicaid is a public health insurance program operated by the states and funded in partnership with federal and state governments. The program serves low-income people, families, seniors, children, and individuals with disabilities, making it a major component of the U.S. health care system.
Because taxpayer revenue supports Medicaid payments, shifts in local billing patterns reflect how public health care funds are distributed in the community.
The Alcohol and Drug Abuse Treatment service classification encompasses a set of Medicaid-billed services determined by the nature of care, using standardized HCPCS and CPT code groupings. Each code was assigned to a single service category using uniform code prefixes and numeric ranges for this analysis, ensuring related services could be tracked together without double counting and supporting consistent rankings over time.
While Medicaid expenditures increased in several service categories, Alcohol and Drug Abuse Treatment ranked as the second-highest by total Medicaid payments in Aberdeen for 2024.
Statewide in Washington, Alcohol and Drug Abuse Treatment placed fourth in total Medicaid payments for 2024.
During the five-year period ending in 2024, Aberdeen experienced a $2,102,480 increase—a 51.5% gain—in Medicaid payments for Alcohol and Drug Abuse Treatment. The rate of spending growth accelerated at times, with significant annual increases observed in 2020 and 2023.
Most of the Medicaid spending for Alcohol and Drug Abuse Treatment was concentrated in a small number of ZIP codes in Aberdeen. In 2024, payments in ZIP code 98520 totaled $6,182,866, accounting for 100% of all Medicaid funds connected to Alcohol and Drug Abuse Treatment in the city.
Additionally, Medicaid payments for Alcohol and Drug Abuse Treatment involved a limited selection of billing codes.
Comparing 2024 to 2023, spending on Alcohol and Drug Abuse Treatment rose 18.5% in Aberdeen, versus a 40.3% increase across all Medicaid claim categories in the city during the same time.
According to the Centers for Medicare & Medicaid Services, combined state and federal Medicaid expenditures reached about $871.7 billion in fiscal year 2023, or roughly 18% of total U.S. health spending. This was a notable increase from approximately $613.5 billion in 2019, prior to the COVID-19 pandemic.
This growth represents an approximate 40% increase in just a few years, largely the result of broadened enrollment and higher service utilization during and after the pandemic.
Recent federal budget measures under the Trump administration have included major proposals to shrink federal Medicaid funding and alter the program framework. The “One Big Beautiful Bill Act,” enacted in 2025, is expected to cut federal Medicaid expenses by more than $1 trillion over the next decade and establish measures such as work requirements and greater cost-sharing that may reduce coverage and funding for certain recipients. These reforms are likely to shift greater costs onto states and slow the rise of federal Medicaid contributions, even as program enrollment remains high.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $4,080,386 | 311.3% |
| 2021 | $3,429,913 | -15.9% |
| 2022 | $3,920,293 | 14.3% |
| 2023 | $5,217,144 | 33.1% |
| 2024 | $6,182,866 | 18.5% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | National Codes Established for State Medicaid Agencies | $26,690,457 | 64.1% |
| 2 | Alcohol and Drug Abuse Treatment | $6,182,866 | 14.8% |
| 3 | Evaluation and Management | $2,960,147 | 7.1% |
| 4 | Medicine Services and Procedures | $2,128,989 | 5.1% |
| 5 | Radiology Procedures | $933,710 | 2.2% |
| 6 | Ambulance and Other Transport Services and Supplies | $689,371 | 1.7% |
| 7 | Pathology and Laboratory Procedures | $668,846 | 1.6% |
| 8 | Dental Services | $579,343 | 1.4% |
| 9 | Durable Medical Equipment | $260,347 | 0.6% |
| 10 | Surgery | $190,093 | 0.5% |
| 11 | Procedures / Professional Services | $105,026 | 0.3% |
| 12 | Medical And Surgical Supplies | $104,901 | 0.3% |
| 13 | Drugs Administered Other than Oral Method | $99,229 | 0.2% |
| 14 | Temporary Codes | $40,935 | 0.1% |
| 15 | Durable medical equipment (DME) Medicare administrative contractors (MACs) | $5,322 | <0.1% |
| 16 | Orthotic Procedures and services | $3,302 | <0.1% |
| 17 | Temporary National Codes (Non-Medicare) | $851 | <0.1% |
| 18 | Administrative, Miscellaneous and Investigational | $0 | <0.1% |
| 18 | Coronavirus Diagnostic Panel | $0 | <0.1% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| H0020 | Alcohol and/or drug services | $2,737,230 | 40 |
| H0043 | Supported housing, per diem | $2,011,099 | 22 |
| H2023 | Supported employ, per 15 min | $587,223 | 23 |
| H0004 | Alcohol and/or drug services | $509,696 | 24 |
| H2025 | Supp maint employ, 15 min | $224,343 | 21 |
| H0001 | Alcohol and/or drug assess | $58,203 | 15 |
| H0033 | Oral med adm direct observe | $33,905 | 12 |
| H0038 | Self-help/peer svc per 15min | $18,477 | 8 |
| H0046 | Mental health service, nos | $2,688 | 5 |
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.
