Medicaid spending on Procedures / Professional Services in Sacramento reaches $43.1 million in 2024

Sacramento Medicaid providers sought $43,110,232 in payments for services classified under the Procedures / Professional Services category in 2024, data from the U.S. Department of Health and Human Services Medicaid Provider Spending database shows. That figure represents a 49.4% increase from 2023, when claims for this same service type totaled $28,851,387.

Medicaid, a public health insurance initiative managed by states with funding from both federal and state levels, provides coverage for low-income individuals and families, seniors, children and people with disabilities, making it a key component of the U.S. health care system. Learn more about how Medicaid is funded from the Commonwealth Fund.

Local shifts in Medicaid billing shed light on how public funds are distributed to support health care in specific communities, given the taxpayer-based structure of the payments.

The “Procedures / Professional Services” group includes a set of Medicaid-billed services categorized by the type of care delivered, referencing standardized HCPCS and CPT coding systems. For this overview, each code was allocated to one service category through consistent code range assignments, which avoids duplication and ensures service trends are accurately tracked over time.

Though spending for various Medicaid service groups was up, Procedures / Professional Services stood as the fifth-largest Medicaid payment category in Sacramento in 2024.

Statewide in California, Procedures / Professional Services ranked sixth by total Medicaid payments for the year.

Between 2019 and 2024, Medicaid payments for Procedures / Professional Services in Sacramento grew by $25,997,126, or 151.9%. Growth accelerated at points over the period, with sharp year-over-year jumps seen in both 2023 and 2020.

While these expenditures were distributed citywide, a few ZIP codes accounted for a substantial share. In 2024, top ZIP codes for Medicaid payments tied to these services were 95816 at $15,779,984, 95823 with $10,294,088, and 95815 totaling $9,257,968. The 3 leading ZIP codes combined for 82% of all local Medicaid Procedures / Professional Services payments.

Spending within this category was also concentrated by billing code, reflecting specific high-demand services or procedures.

To compare, Medicaid payments in Sacramento connected with the Procedures / Professional Services category rose by 49.4% from 2023 to 2024, while payments across all Medicaid claim categories increased just 2.8% in that span.

According to the Centers for Medicare & Medicaid Services, total state and federal spending on Medicaid reached about $871.7 billion in the 2023 fiscal year, equivalent to roughly 18% of national health expenditures, a significant increase from $613.5 billion in 2019, before the COVID-19 pandemic began.

This translates to nearly 40% growth over several years, attributed largely to fast-rising enrollment and increased use during and following the pandemic.

Recent federal budget actions during the Trump administration have featured major proposals to trim federal Medicaid funding and reshape the program. The “One Big Beautiful Bill Act,” passed and signed in 2025, is anticipated to reduce federal Medicaid spending by more than $1 trillion over 10 years and adds policies such as work requirements and expanded cost-sharing. This may shift additional costs to states and restrict future federal Medicaid growth, impacting coverage and financial resources for some program participants even as the program remains a safety net for millions 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.