Federal Way Medicaid outlays for Medicine Services and Procedures climb to $4,005,068 in 2024

In 2024, providers in Federal Way billed Medicaid $4,005,068 for services within the Medicine Services and Procedures category, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. This reflected a 2.1% uptick compared with 2023, when claims for these services totaled $3,920,941.

Medicaid is a public health insurance initiative managed by state governments, with financing shared between federal and state agencies. The program covers low-income individuals, families, children, seniors, and people with disabilities, making it one of the largest components of America’s health care system.

Because Medicaid draws from taxpayer support, shifts in local claim volumes can highlight adjustments in how public dollars are distributed in health care at the community level.

The “Medicine Services and Procedures” group encompasses a range of services billed under Medicaid, categorized by the type of care given using consistent HCPCS and CPT code groupings. This review organized each billing code into a single service group through standard code prefixes and numeric ranges, enabling related services to be tracked together without repetition and supporting accurate long-term comparisons.

Spending across multiple Medicaid health service groups rose, with Medicine Services and Procedures standing as the third highest in Federal Way by total Medicaid payments for 2024.

Statewide in Washington, Medicine Services and Procedures also ranked third for total Medicaid outlays in 2024.

Over the five years preceding 2024, Medicaid spending on Medicine Services and Procedures in Federal Way increased by $299,733, or 8.1%. The rate of growth was particularly strong during some intervals, including significant year-over-year rises in both 2022 and 2023.

While the costs for Medicine Services and Procedures were spread throughout Federal Way, payments were largely concentrated in a few ZIP codes. In 2024, the ZIP codes with the greatest Medicaid payments in this category were 98003 ($2,814,118), 98023 ($710,559), and 98001 ($480,390). Combined, these top 3 ZIP codes made up 100% of Federal Way’s Medicaid spending in the Medicine Services and Procedures category for the year.

Within the category, only a small subset of billing codes drove the majority of Medicaid payments.

Medicaid payments for Medicine Services and Procedures in Federal Way moved up 2.1% from 2023 to 2024, compared with a 7.4% shift among all Medicaid claim types in the city over the same period.

According to the Centers for Medicare & Medicaid Services, combined federal and state Medicaid spending reached about $871.7 billion in fiscal year 2023, accounting for roughly 18% of all U.S. health expenditures, a sharp rise from approximately $613.5 billion in 2019, before the COVID-19 pandemic.

This jump represents growth of roughly 40% in several years, prompted mainly by broader enrollment and increased usage during and following the pandemic.

Recent federal budget measures initiated under the Trump administration have included major proposals that trim federal Medicaid funding and restructure the program. The “One Big Beautiful Bill Act,” enacted in 2025, is projected to reduce federal Medicaid outlays by more than $1 trillion over the next decade and includes new policies like work requirements and increased cost-sharing, which could decrease coverage and funds for some recipients. These changes are expected to place greater financial responsibility on states and limit growth in federal Medicaid assistance, even as the program continues serving tens of millions nationwide.

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.