West Hollywood sees 32% rise in Medicaid payments for National Codes Established for State Medicaid Agencies in 2024

Data from the U.S. Department of Health and Human Services Medicaid Provider Spending database show that Medicaid providers in West Hollywood billed $6,667,678 for services under the National Codes Established for State Medicaid Agencies in 2024. This total marks an increase of 32% compared to 2023, when submitted claims for this service category came to $5,052,016.

Medicaid is a statewide public health insurance initiative funded by both federal and state governments. It provides coverage for low-income individuals, children, seniors and people with disabilities, making it a critical component of the U.S. health care system.

Because taxpayer funding supports Medicaid, local billing levels reflect how public health dollars are distributed within a community.

The “National Codes Established for State Medicaid Agencies” category includes Medicaid services grouped by specific types of care, organized using standardized HCPCS and CPT codes. For this report, each billing code was assigned to a single category using robust code prefixes and numeric ranges to both group related services together accurately and avoid overcounting while ensuring year-to-year comparisons are reliable.

National Codes Established for State Medicaid Agencies accounted for the largest share of Medicaid payments among all categories in West Hollywood in 2024.

Statewide, this category also ranked highest by overall Medicaid payments in California in 2024.

From 2019 through 2024, Medicaid payments in West Hollywood attributable to the National Codes Established for State Medicaid Agencies grew by $3,979,992, a 148.1% increase. Some periods saw accelerated spending growth, with especially notable jumps in both 2022 and 2023 versus the prior years.

Although payments for these services spanned West Hollywood, they were primarily focused in a small number of ZIP codes. In 2024, the single highest concentration occurred in ZIP code 90046, totaling $6,667,677. This represented 100% of all Medicaid payments for this category within West Hollywood for the year.

Within this category, Medicaid spending was further centered on a limited subset of specific billing codes.

Payments linked to the National Codes Established for State Medicaid Agencies category experienced a 32% rise in West Hollywood from 2023 to 2024, while citywide Medicaid claims across all categories increased 6% during the same timeframe.

According to the Centers for Medicare & Medicaid Services, federal and state Medicaid expenditures reached approximately $871.7 billion in fiscal year 2023, equal to about 18% of all national health spending, up sharply from roughly $613.5 billion in 2019, before the onset of the COVID-19 pandemic.

This surge, fueled mostly by expanding enrollment and higher service utilization during and post-pandemic, equals roughly 40% growth in only a few years.

Major federal budget changes enacted under the Trump administration have targeted extensive reductions in Medicaid funding and program restructuring. The “One Big Beautiful Bill Act,” signed into law in 2025, is projected to reduce federal Medicaid disbursements by over $1 trillion over 10 years and institutes work requirements and increased cost-sharing policies that could decrease coverage for certain beneficiaries. Consequently, states may face greater financial responsibility for health coverage even as enrollment remains high.

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.