Palm Harbor Medicaid payments for state-specified services rise to $2,761,557 in 2024

In 2024, data from the U.S. Department of Health and Human Services Medicaid Provider Spending database show that Medicaid providers in Palm Harbor billed $2,761,557 for services grouped under the National Codes Established for State Medicaid Agencies. This reflected a 19.5% rise over 2023, when local providers billed $2,311,678 for this same service category.

Medicaid is a public health insurance program administered by each state and funded together by federal and state governments. As one of the nation’s largest health coverage programs, it serves low-income families and individuals, older adults, children, and people with disabilities.

Because these Medicaid funds are provided by taxpayers, variations in local billing reflect how a community allocates its public health care financing.

The “National Codes Established for State Medicaid Agencies” grouping consists of services defined by the type of care, using set HCPCS and CPT code groups. In this analysis, each billing code was assigned to a single category according to consistent prefixes and number ranges, letting similar services be counted together while preventing double counting and supporting accurate rankings over time.

Though several Medicaid service categories saw spending increases, National Codes Established for State Medicaid Agencies was the second-largest by total Medicaid payments in Palm Harbor in 2024.

For all of Florida, this category also ranked as the second-largest for total Medicaid payments that year.

Across the five years leading up to 2024, Medicaid payments tied to this category in Palm Harbor rose by $1,646,569, an increase of 147.7%. Some years, including 2020 and 2023, saw sharp annual increases.

While payments for care in this group were distributed throughout Palm Harbor, much of the spending was located in a small number of ZIP codes. In 2024, ZIP code 34683 accounted for $2,494,824 and 34684 for $266,732; together, these two ZIP codes comprised 100% of all Medicaid payments tied to the National Codes Established for State Medicaid Agencies in Palm Harbor for that year.

Within this Medicaid category, most spending was also directed to a small set of billing codes.

Comparing 2024 to 2023, Medicaid payments tied to this category in Palm Harbor saw a 19.5% increase, while all Medicaid claim categories citywide grew by 28.9% during the same timeframe.

Centers for Medicare & Medicaid Services data indicate that combined federal and state Medicaid spending reached approximately $871.7 billion in fiscal year 2023, making up about 18% of total national health expenditures. That figure considerably increased from about $613.5 billion in 2019, before the COVID-19 pandemic.

This increase represents about 40% growth over just a few years, driven mostly by broader enrollment and greater use of services during and after the pandemic.

Recent federal budget actions under the Trump administration have introduced proposals for major reductions in Medicaid funding and program restructuring. The “One Big Beautiful Bill Act,” signed in 2025, is set to cut over $1 trillion in federal Medicaid spending over a decade and adds requirements such as work rules and higher cost-sharing, which could reduce financial aid and coverage for some recipients. The resulting changes are forecasted to shift more Medicaid costs to states and curb future federal funding growth, even as the program continues serving 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.