Medicaid payments for select state codes surge 69.2% in Lebanon in 2024

In 2024, Medicaid providers in Lebanon billed a total of $1,675,961 for services categorized under the National Codes Established for State Medicaid Agencies, as reported by the U.S. Department of Health and Human Services Medicaid Provider Spending database. This figure represents a 69.2% rise from 2023, when claims totaled $990,700 for these services.

Medicaid operates as a public health insurance option administered at the state level and financed in partnership by federal and state governments. It provides coverage for low-income individuals and families, seniors, children, and those with disabilities, making it a major part of the overall U.S. health care system.

Since Medicaid funding comes from taxpayers, trends in billing reflect how local communities allocate public health care resources.

The “National Codes Established for State Medicaid Agencies” group is made up of Medicaid-billed services defined by standardized HCPCS and CPT coding guidelines that indicate service type. For this report, each code was sorted into a single service group using the same code prefixes and numerical series, grouping related claims for consistent analysis and ranking while avoiding duplication.

While spending rose in various Medicaid service groups, the National Codes Established for State Medicaid Agencies category was the second-largest in total payments made in Lebanon for 2024.

Statewide in Tennessee, the National Codes Established for State Medicaid Agencies led in total Medicaid payments for 2024.

In the five years preceding 2024, Medicaid payments for this category in Lebanon increased from $0 to $1,675,961. Growth accelerated during certain intervals, with significant annual increases observed in 2022 and 2023.

Although these payments were spread citywide, most were concentrated within specific ZIP codes. The largest 2024 payments in this category came from ZIP code 37087, totaling $1,675,960. This top ZIP code comprised 100% of Medicaid payments for the category in Lebanon during the period.

Medicaid spending in this area also tended to cluster among a small set of individual billing codes.

Between 2024 and 2023, payments in Lebanon for services tied to the National Codes Established for State Medicaid Agencies increased 69.2%, compared with an 18.6% change among all Medicaid claim categories across the city during the same time span.

According to the Centers for Medicare & Medicaid Services, combined federal and state expenditures for Medicaid came to about $871.7 billion in fiscal year 2023. This accounted for around 18% of all national health expenses, up significantly from an estimated $613.5 billion in 2019, before the COVID-19 pandemic began.

This 40% increase over several years is mostly attributed to higher enrollment numbers and expanded utilization during and after the pandemic.

Federal budget policy under the Trump administration has included key measures to cut federal Medicaid funding and introduce program changes. For instance, the “One Big Beautiful Bill Act,” adopted in 2025, is set to reduce federal Medicaid funding by more than $1 trillion over a decade, instituting requirements such as work stipulations and greater cost-sharing, which could limit eligibility and funding for certain recipients. As federal support levels off or declines, states may see a larger share of Medicaid cost responsibility even while the program remains essential to 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.