In 2024, Medicaid providers in Southgate billed a total of $4,051,079 for services categorized under National Codes Established for State Medicaid Agencies, as reported by the U.S. Department of Health and Human Services Medicaid Provider Spending database. This reflects an 8.8% increase from 2023, when billing for the same category amounted to $3,724,254.
Medicaid is a state-administered public health insurance program funded by both federal and state governments. Serving low-income residents, seniors, children, and people with disabilities, it is a major component of the U.S. health care landscape.
As Medicaid uses taxpayer dollars, shifts in local billing levels demonstrate how public health care funds are distributed within the community.
The “National Codes Established for State Medicaid Agencies” group includes various Medicaid services identified by the care provided, organized through standardized HCPCS and CPT code groupings. For this analysis, each code was placed in a single service category using specific code prefixes and numeric ranges to ensure related services were grouped together, preventing double counting and maintaining accurate rankings over time.
Medicaid spending grew across several service categories, but National Codes Established for State Medicaid Agencies was the third largest by total Medicaid payments in Southgate during 2024.
Statewide, this category was ranked second in Michigan for overall Medicaid payments in 2024.
Examining the five years through 2024, Medicaid payments connected to National Codes Established for State Medicaid Agencies in Southgate rose by $439,315, or 12.2%. Growth was especially strong in some years, with notable annual increases in 2023 and 2022.
While these payments were distributed across Southgate, they were highly concentrated in a small number of ZIP codes. In 2024, ZIP code 48195 saw the highest Medicaid payments under this category, totaling $4,051,079. Overall, the leading ZIP code accounted for 100% of all related Medicaid payments in Southgate that year.
Within the National Codes Established for State Medicaid Agencies group, a small set of billing codes accounted for most Medicaid payments.
Comparing growth, payments for this category in Southgate increased 8.8% between 2024 and 2023, compared to a 7.2% rise for all Medicaid claim categories in the city during the same period.
According to the Centers for Medicare & Medicaid Services, combined federal and state Medicaid expenditures totaled about $871.7 billion in fiscal year 2023. This made up around 18% of all national health spending, a significant increase from the approximately $613.5 billion recorded in 2019, prior to the COVID-19 pandemic.
This surge represents growth close to 40% over a few years, mainly driven by more people enrolling in Medicaid and more frequent use of health care services during and after the pandemic.
Recent federal budget measures during the Trump administration have proposed major reductions to federal Medicaid funding and adjustments to the program’s structure. The “One Big Beautiful Bill Act,” enacted in 2025, is expected to reduce federal Medicaid spending by more than $1 trillion over 10 years, with policy measures such as work requirements and increased cost-sharing that may limit coverage and funding for some enrollees. These changes are predicted to increase state responsibilities and slow federal growth in Medicaid support, though the program still serves tens of millions of Americans.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $3,611,763 | -10.5% |
| 2021 | $2,572,681 | -28.8% |
| 2022 | $649,678 | -74.7% |
| 2023 | $3,724,253 | 473.2% |
| 2024 | $4,051,079 | 8.8% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | Alcohol and Drug Abuse Treatment | $10,204,297 | 43.2% |
| 2 | Evaluation and Management | $5,082,919 | 21.5% |
| 3 | National Codes Established for State Medicaid Agencies | $4,051,079 | 17.1% |
| 4 | Medicine Services and Procedures | $3,316,982 | 14% |
| 5 | Pathology and Laboratory Procedures | $368,021 | 1.6% |
| 6 | Dental Services | $188,296 | 0.8% |
| 7 | Surgery | $173,709 | 0.7% |
| 8 | Temporary National Codes (Non-Medicare) | $138,543 | 0.6% |
| 9 | Durable Medical Equipment | $41,941 | 0.2% |
| 10 | Radiology Procedures | $31,864 | 0.1% |
| 11 | Administrative, Miscellaneous and Investigational | $9,134 | <0.1% |
| 12 | Procedures / Professional Services | $6,825 | <0.1% |
| 13 | Drugs Administered Other than Oral Method | $5,984 | <0.1% |
| 14 | Medical And Surgical Supplies | $3,048 | <0.1% |
| 15 | Screening Procedures | $0 | <0.1% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| T1017 | Targeted case management | $3,885,385 | 12 |
| T1023 | Program intake assessment | $165,080 | 8 |
| T1040 | Comm bh clinic svc per diem | $612 | 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.
