Medicaid spending on medicine services in Carlsbad climbs 17.3% in 2024

Dr. Mehmet Oz CMS Administrator
Dr. Mehmet Oz CMS Administrator
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Carlsbad Medicaid providers billed $2,073,781 for Medicine Services and Procedures in 2024, as reported by the U.S. Department of Health and Human Services Medicaid Provider Spending database. This represents a 17.3% increase over 2023, when providers billed $1,767,289 for the same services.

Medicaid, a government health insurance program, is managed by the states with joint funding from federal and state sources. The program serves low-income individuals, seniors, children, and people with disabilities, making it a major part of the U.S. health care landscape. More details can be found at this explainer.

Since tax dollars support Medicaid payments, fluctuations in local billing reveal how public health care funds are distributed within a community.

The “Medicine Services and Procedures” category encompasses a selection of Medicaid-billed services grouped by the nature of care, based on consistent code prefixes and numeric ranges from standardized HCPCS and CPT codes. For this analysis, each billing code belongs to only one service category, so related services can be tracked without double counting, ensuring accurate rankings over time.

While Medicaid spending rose in multiple service areas, Medicine Services and Procedures was the second-largest category in Carlsbad in 2024 by total Medicaid payments.

Statewide in New Mexico, Medicine Services and Procedures took the top spot for total Medicaid payments in 2024.

Between 2019 and 2024, Medicaid payments for Medicine Services and Procedures in Carlsbad grew by $1,209,240, or 139.9%. There were significant year-on-year jumps, notably in 2021 and 2022.

Though Medicaid spending in this category was distributed citywide, the bulk went to a few ZIP codes. In 2024, ZIP code 88220 accounted for $2,073,781, making up 100% of Carlsbad’s Medicine Services and Procedures Medicaid payments for the year.

Within Medicine Services and Procedures, spending was further concentrated in just a handful of billing codes.

For comparison, the 17.3% growth for Medicine Services and Procedures in Carlsbad between 2024 and 2023 outpaced the 2.3% increase seen across all Medicaid claim categories in the city during that period.

According to the Centers for Medicare & Medicaid Services, total combined state and federal Medicaid spending hit approximately $871.7 billion in fiscal year 2023, covering about 18% of all U.S. health spending—up from roughly $613.5 billion in 2019, before the COVID-19 pandemic.

This reflects about 40% growth over several years, driven primarily by expanded enrollment and increased use of services both during and after the pandemic.

Recent federal budget policies enacted under the Trump administration include major proposals to decrease federal Medicaid funding and overhaul the program. The “One Big Beautiful Bill Act,” signed into law in 2025, is set to cut over $1 trillion in federal Medicaid funding over 10 years and introduce requirements such as employment mandates and higher out-of-pocket costs. These adjustments could limit coverage and funding for some beneficiaries, transfer more costs to states, and restrict federal Medicaid support growth while still covering tens of millions of Americans.

Medicaid Payments Tied to Medicine Services and Procedures in Carlsbad, New Mexico Over Five Years

Year Total Medicaid Payments % Change From Previous Year
2020 $864,540 -23.1%
2021 $1,176,464 36.1%
2022 $1,443,358 22.7%
2023 $1,767,289 22.4%
2024 $2,073,781 17.3%
Top Categories by Medicaid Payments in Carlsbad, New Mexico, 2024

Rank Category Medicaid Payments Share of City Total
1 Evaluation and Management $4,269,357 34.2%
2 Medicine Services and Procedures $2,073,781 16.6%
3 Alcohol and Drug Abuse Treatment $1,579,801 12.7%
4 Radiology Procedures $1,517,422 12.2%
5 National Codes Established for State Medicaid Agencies $1,314,358 10.5%
6 Pathology and Laboratory Procedures $828,121 6.6%
7 Procedures / Professional Services $289,462 2.3%
8 Ambulance and Other Transport Services and Supplies $223,944 1.8%
9 Dental Services $138,605 1.1%
10 Surgery $94,082 0.8%
11 Temporary Codes $81,535 0.7%
12 Drugs Administered Other than Oral Method $49,637 0.4%
13 Durable Medical Equipment $10,873 0.1%
14 Outpatient PPS $551 <0.1%
Top 20 HCPCS Codes Within the Medicine Services and Procedures Category in Carlsbad, New Mexico, 2024

HCPCS Code Description Medicaid Payments Claims
97530 Therapeutic activities $217,303 49
92508 Tx sp lang voice comm group $194,981 155
93005 Electrocardiogram tracing $148,764 13
90834 Psytx w pt 45 minutes $134,492 10
96365 Ther/proph/diag iv inf init $133,226 12
90837 Psytx w pt 60 minutes $129,485 21
97110 Therapeutic exercises $126,644 56
96375 Tx/pro/dx inj new drug addon $123,794 15
97112 Neuromuscular reeducation $109,930 40
93306 Tte w/doppler complete $91,927 18
94640 Airway inhalation treatment $89,220 12
96374 Ther/proph/diag inj iv push $75,748 15
96361 Hydrate iv infusion add-on $68,704 13
90791 Psych diagnostic evaluation $63,879 14
90832 Psytx w pt 30 minutes $57,381 28
96372 Ther/proph/diag inj sc/im $45,273 39
92507 Tx sp lang voice comm indiv $39,512 31
97150 Group therapeutic procedures $36,418 24
97140 Manual therapy 1/> regions $29,442 26
96360 Hydration iv infusion init $23,132 12

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.



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