Section records $2,111 in Medicaid payments for COVID-19 services in 2024

Dr. Mehmet Oz CMS Administrator
Dr. Mehmet Oz CMS Administrator
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In 2024, Medicaid payments in Section reached at least $2,111 for services billed under HCPCS codes specifically tied to COVID-19, based on figures from the U.S. Department of Health and Human Services Medicaid Provider Spending database.

Medicaid, managed by state governments and funded through a partnership of federal and state dollars, provides coverage to low-income people, seniors, children, and those with disabilities, making it a significant segment of the U.S. health care system.

Because taxpayer money finances Medicaid, shifts in local billing provide insight into the allocation of public health care funding within a community.

For this review, COVID-19–related services were determined by identifying HCPCS codes designated as “COVID-19” or “coronavirus”-related either in billing descriptions or reference sources. Consequently, the reported totals include only services clearly labeled as COVID-related in billing records, not all pandemic-associated care that may be reported under broader or alternative medical codes.

In comparison, the highest Medicaid payments for COVID-19 services in Alabama during 2024 occurred in Birmingham, where claims connected to the virus totaled $1,029,178.

Records indicate that Amma Health Care Clinic LLC was the sole provider that filed Medicaid claims for COVID-19–related services in the city throughout 2024.

During the pandemic years, Medicaid spending in Section saw notable growth due to COVID-19–specific services.

In the two years before the pandemic, average yearly Medicaid payments in Section were $22,701.

Centers for Medicare & Medicaid Services data shows that federal and state Medicaid expenditures reached about $871.7 billion in fiscal year 2023, making up close to 18% of total national health costs, an increase from approximately $613.5 billion in 2019, before the pandemic.

This jump amounts to a roughly 40% rise over just a few years, largely due to higher enrollment and increased use during and following the pandemic period.

Recent federal budget policies from the Trump administration proposed major reductions in federal Medicaid contributions and structural changes to the program. The “One Big Beautiful Bill Act,” enacted in 2025, is expected to cut more than $1 trillion in federal Medicaid spending over a decade and brings new requirements such as work mandates and increased cost-sharing. These measures may reduce coverage and federal support for some recipients, shifting greater responsibility and costs to states while the program continues to serve millions of Americans.

Medicaid Payments in Section Over 7 Years
Year COVID-19–Related Payments COVID-19 Payments % Change (YoY) Total Medicaid Payments
2024 $2,111 -62.8% $33,413
2023 $5,669 -61.7% $99,073
2022 $14,790 147.5% $92,691
2021 $5,975 N/A $42,967
2020 $0 N/A $15,556
2019 $0 N/A $20,681
2018 $0 N/A $24,721
Top COVID-19–Related HCPCS Codes in Section
HCPCS Code Description Medicaid Payments Claims
87635 COVID Specific $2,111 51

Note: Only includes HCPCS codes explicitly categorized for COVID-19 services; totals do not capture all health care spending related to the pandemic.

Information for this report comes from the U.S. Department of Health and Human Services Medicaid Provider Spending database. The full dataset is available here.



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