In 2024, Medicaid providers in New City billed $386,925 for services grouped under the Medical And Surgical Supplies category, data from the U.S. Department of Health and Human Services Medicaid Provider Spending database shows. This represents a 43.6% rise from 2023, when the total was $269,535 for these services.
Medicaid, a state-run public health insurance program with joint federal and state funding, provides coverage to low-income people, including families, seniors, children, and individuals with disabilities, and is a significant component of the U.S. health care system. See more details from the explainer by the Commonwealth Fund.
Since Medicaid spending originates from taxpayer contributions, shifts in local billing can reflect how public dollars for health care services are used in particular communities.
The Medical And Surgical Supplies category encompasses a variety of Medicaid-billed services, sorted by care type and based on standard HCPCS and CPT code groups. For this report, billing codes were assigned to distinct service categories using specific prefixes and number sequences to ensure accurate analysis, prevent overlap, and preserve clear rankings.
While many service categories received increased Medicaid payments, Medical And Surgical Supplies stood as the fourth-largest in New City for 2024 by total spending.
Statewide in New York, this category was ranked 13th in total Medicaid payments during 2024.
Looking at the five years before 2024, New City’s Medicaid payments for the Medical And Surgical Supplies category grew by $375,125, equating to a 3,179% increase. The rate of spending growth moved even faster during certain intervals, particularly in 2023 and 2022, marked by strong year-over-year jumps.
Although Medicaid spending was distributed throughout New City for this category, payments mainly centered in a small group of ZIP codes. In 2024, ZIP code 10956 alone accounted for $386,924, with the top ZIP code representing 100% of related Medicaid spending in the city that year.
Medicaid payments for Medical And Surgical Supplies were also focused on a small number of individual billing codes.
Comparatively, the 43.6% growth rate for Medical And Surgical Supplies between 2024 and 2023 outpaced the 28.7% increase seen across all Medicaid claim categories in New City during that period.
Centers for Medicare & Medicaid Services data shows combined federal and state Medicaid spending reached approximately $871.7 billion in fiscal year 2023, overall representing around 18% of U.S. health care costs and up substantially from roughly $613.5 billion in 2019, just before the COVID-19 pandemic.
This expansion equals nearly 40% growth in a short timeframe, fueled largely by increased enrollment and service use during and after the pandemic.
Federal budget changes under the Trump administration have involved major suggestions to limit federal Medicaid contributions and adjust how the program is structured. The “One Big Beautiful Bill Act,” enacted in 2025, is set to decrease federal Medicaid spending by more than $1 trillion over 10 years and includes new rules such as work requirements and higher patient cost-sharing, which may reduce both coverage and distribution of funds among some groups. The result is likely a greater financial responsibility on states and slower growth in federal aid for Medicaid, despite the program maintaining its reach for millions of recipients.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $11,800 | -23% |
| 2021 | $30,800 | 161% |
| 2022 | $89,095 | 189.3% |
| 2023 | $269,534 | 202.5% |
| 2024 | $386,924 | 43.6% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | National Codes Established for State Medicaid Agencies | $8,939,616 | 62.5% |
| 2 | Medicine Services and Procedures | $2,638,080 | 18.4% |
| 3 | Evaluation and Management | $1,056,501 | 7.4% |
| 4 | Medical And Surgical Supplies | $386,924 | 2.7% |
| 5 | Durable Medical Equipment | $323,078 | 2.3% |
| 6 | Surgery | $322,938 | 2.3% |
| 7 | Radiology Procedures | $213,690 | 1.5% |
| 8 | Orthotic Procedures and services | $186,998 | 1.3% |
| 9 | Temporary National Codes (Non-Medicare) | $113,963 | 0.8% |
| 10 | Pathology and Laboratory Procedures | $60,404 | 0.4% |
| 11 | Procedures / Professional Services | $31,286 | 0.2% |
| 12 | Vision Services | $26,662 | 0.2% |
| 13 | Ambulance and Other Transport Services and Supplies | $5,431 | <0.1% |
| 14 | Drugs Administered Other than Oral Method | $4,676 | <0.1% |
| 15 | Dental Services | $2,826 | <0.1% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| A4287 | Disp col sto bag breast milk | $152,206 | 12 |
| A4554 | Disposable underpads | $149,449 | 12 |
| A6540 | Gc stocking waistlngth 30-40 | $36,920 | 11 |
| A4550 | Surgical trays | $24,400 | 8 |
| A6539 | Gc stocking waistlngth 18-30 | $13,512 | 9 |
| A4927 | Non-sterile gloves | $10,435 | 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.
