Fairhaven sees 64.4% jump in Medicaid spending for Medicine Services and Procedures in 2024

In 2024, Medicaid providers in Fairhaven billed $5,809,491 for services categorized under Medicine Services and Procedures, based on the U.S. Department of Health and Human Services Medicaid Provider Spending database. This amounted to a 64.4% rise compared to 2023, when providers filed $3,533,041 in claims under this service type.

Medicaid is a public health insurance initiative administered by each state with joint federal and state government funding, as outlined by the Commonwealth Fund. The program provides coverage for low-income people and families, children, older adults, and individuals with disabilities, representing a significant segment of America’s health care system.

Because Medicaid funds are sourced from taxpayers, fluctuations in local billing amounts reveal how public health dollars are distributed within a community.

The “Medicine Services and Procedures” grouping represents a Medicaid billing classification defined by the type of medical care provided, according to standardized HCPCS and CPT code systems. This review assigned each billing code to a single category using consistent prefixes and numeric ranges to enable comparative analysis of related services, while preventing overlapping counts and ensuring accurate comparison over time.

Spending expanded across several Medicaid service groups, but Medicine Services and Procedures accounted for the highest total dollar amount paid in Fairhaven for 2024.

Within Massachusetts, the Medicine Services and Procedures category ranked fourth in total Medicaid payments statewide for 2024.

Looking at the span from five years leading up to 2024, Medicaid payments for Medicine Services and Procedures in Fairhaven climbed by $4,987,972—or 607.2%. Certain periods showed especially strong annual growth, notably in 2023 and 2021.

Payments for these services were distributed across Fairhaven, yet heavily concentrated by ZIP code. In 2024, ZIP code 02719 saw the entirety of Medicaid spending in this category, reaching $5,809,491—the single largest share, accounting for 100% of payments reported in the category for the city that year.

Within Medicine Services and Procedures, the bulk of Medicaid payments focused on a relatively small set of billing codes.

To compare local dynamics, the 64.4% jump in Fairhaven for Medicine Services and Procedures outpaced the citywide increase across all Medicaid claim types, which rose 13.1% between 2024 and 2023.

Centers for Medicare & Medicaid Services data show combined federal and state Medicaid outlays totaled approximately $871.7 billion in fiscal 2023, which represented about 18% of all national health care costs. That’s up sharply from roughly $613.5 billion in 2019, prior to the onset of COVID-19.

The roughly 40% growth in a short span was largely fueled by increased enrollment and utilization triggered during and after the pandemic period.

Recent major federal budgets enacted under the Trump administration proposed to reduce federal Medicaid spending and alter the program’s structure. For example, the “One Big Beautiful Bill Act,” enacted in 2025, aims to cut federal Medicaid costs by more than $1 trillion over 10 years and puts in place rules like work requirements and greater participant cost-sharing, potentially limiting both funding and coverage for certain enrollees. Experts expect these changes to place more financial responsibility on states and curb the growth rate of federal Medicaid allocations, despite the program’s continued coverage of tens of millions in the U.S.

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.