Kalamazoo Medicaid spending for Medicine Services and Procedures climbs 6.7% in 2024

In 2024, Medicaid providers in Kalamazoo billed $19,642,260 for Medicine Services and Procedures, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. That total amounts to a 6.7% gain from 2023, when the same service category drew $18,411,756 in Medicaid claims.

Medicaid, the public health insurance coverage program run by states and funded by both federal and state governments, covers low-income families and individuals, seniors, children and people with disabilities, making it one of the largest sectors in U.S. health care.

Because Medicaid funds originate with taxpayers, fluctuations in local claims show how a community’s health care expenditures are prioritized.

The “Medicine Services and Procedures” category includes Medicaid-billed services classified by type of care, based on standard HCPCS and CPT groupings. This analysis assigned each billing code to a specific service area using established code prefixes and number ranges, grouping related services for review, avoiding double counting, and maintaining consistent rankings by year.

While Medicaid spending increased for a range of categories, Medicine Services and Procedures ranked third for total Medicaid payments in Kalamazoo for 2024.

Statewide, Michigan ranked Medicine Services and Procedures fourth for total Medicaid payments in 2024.

Examining the past five years leading to 2024, Kalamazoo’s Medicaid spending in the Medicine Services and Procedures category grew by $4,322,899, or 28.2%, with accelerated annual growth seen during 2021 and 2023.

Although spending for Medicine Services and Procedures claims was distributed citywide, most payments were concentrated in a few ZIP codes. In 2024, ZIP code 49006 led with $6,353,587 in claims, followed by 49001 at $5,222,807, and 49007 with $4,769,209. Together, these top 3 ZIP codes represented 83.2% of Kalamazoo’s total Medicaid payments for this category during the year.

Within Medicine Services and Procedures, a handful of individual billing codes drew the majority of Medicaid payouts.

Medicaid payments for Medicine Services and Procedures increased by 6.7% from 2023 to 2024 in Kalamazoo, compared with a 3% rise for all Medicaid claim categories combined within the city for the same time frame.

According to the Centers for Medicare & Medicaid Services, combined state and federal Medicaid spending totaled about $871.7 billion in fiscal year 2023, accounting for approximately 18% of national health expenditures, which represents a significant increase from $613.5 billion in 2019 before the COVID-19 pandemic.

This jump equates to nearly 40% growth over a span of several years, driven mainly by expanded enrollment and increased service use during and following the pandemic.

Recent budget laws under the Trump administration brought significant proposals to cut federal Medicaid funding and overhaul the program. For instance, the “One Big Beautiful Bill Act,” adopted in 2025, is forecast to reduce federal Medicaid spending by more than $1 trillion over the next decade while imposing work conditions and higher cost-sharing that could affect coverage and funding available to some recipients. These reforms are poised to shift expenses to states and limit federal Medicaid growth even as enrollment figures remain high for tens of millions of Americans.

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.