Shenandoah Medicaid spending on medicine services climbs to $1,049 in 2024

In 2024, Medicaid providers in Shenandoah billed $1,049 for Medicine Services and Procedures, as shown in the U.S. Department of Health and Human Services Medicaid Provider Spending database. That total reflects a 3646.4% jump from 2023, when providers billed $28 for similar services.

Medicaid is a government health insurance program funded jointly by federal and state governments and administered by the states. The program provides coverage for low-income people, families, children, seniors and people with disabilities, making it one of the largest components of the U.S. health care system.

Shifts in local Medicaid provider billing show how taxpayer-funded health care resources are distributed within a community.

The “Medicine Services and Procedures” designation includes a range of Medicaid-billed services grouped by care type, using established HCPCS and CPT code sets. The analysis assigned each billing code to a single service category according to patterned prefixes and numeric ranges, grouping similar services while preventing double counting and maintaining consistent rankings across time.

While overall Medicaid expenditures increased among several categories, Medicine Services and Procedures placed second in Shenandoah for total Medicaid payments in 2024.

Across Virginia, Medicine Services and Procedures ranked fourth by total Medicaid payments in 2024.

Medicaid payments for Medicine Services and Procedures in Shenandoah grew by $752, or 252.9%, over the five years leading to 2024. The pace of spending rose most sharply during certain periods, with major year-over-year gains seen in 2023 and 2022.

Although payments in this category were reported throughout the city, they were concentrated within a small number of ZIP codes. In 2024, ZIP code 22849 accounted for $1,049—the total Medicaid payments in Shenandoah for Medicine Services and Procedures that year. This single ZIP code represented 100% of citywide Medicaid payments in the category for 2024.

Within Medicine Services and Procedures, Medicaid payments were also focused on a small group of specific billing codes.

For context, from 2023 to 2024, Medicaid spending on Medicine Services and Procedures in Shenandoah jumped 3646.4%, compared with a 35.1% change for all Medicaid claim categories in the city during that timeframe.

According to the Centers for Medicare & Medicaid Services, combined state and federal Medicaid expenditures hit about $871.7 billion in fiscal year 2023, making up close to 18% of all national health spending, a significant rise from roughly $613.5 billion in 2019, the year before the COVID-19 pandemic.

The increase represents about 40% growth in just a few years, largely driven by wider enrollment and greater use of medical services during and after the pandemic.

Recent federal budgets under the Trump administration have included substantial proposed reductions in federal Medicaid funding and some restructuring. For instance, the “One Big Beautiful Bill Act,” enacted in 2025, is estimated to reduce federal Medicaid spending by over $1 trillion in the next decade and introduces policies like work requirements and increased cost-sharing, which may limit coverage and funding for certain groups. These reforms are likely to increase the proportion of Medicaid costs borne by states and may slow the future growth of federal support, even as the program continues to cover tens of millions across the country.

Note: HCPCS codes are presented for context within the category. Totals and rankings throughout this article are calculated using standardized groupings rather than individual billing codes.

Details in this article were sourced from the U.S. Department of Health and Human Services Medicaid Provider Spending database. The original data is available here.