Fredericksburg Medicaid spending for Medicine Services and Procedures rises to $26.5 million in 2024

In 2024, Medicaid providers in Fredericksburg billed a total of $26,513,533 for services grouped under Medicine Services and Procedures, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. This figure represents a 2.2% rise compared to 2023, when claims for the category amounted to $25,945,448.

Medicaid, a joint federal and state public health insurance program, provides coverage for low-income families and individuals, seniors, children, and those with disabilities, making it a major component of the nation’s health care system. For more information on funding, see the Commonwealth Fund explainer.

Since Medicaid funding is supported by taxpayer dollars, fluctuations in local billing levels reflect how public health resources are allocated within Fredericksburg.

The Medicine Services and Procedures category is defined by standardized HCPCS and CPT code groupings that sort Medicaid-billed services by care type. This analysis assigned each billing code to one service category using consistent code prefixes and number ranges, ensuring grouped services could be reviewed together with accurate year-over-year rankings and without double counting.

Medicaid spending increased in several categories, but Medicine Services and Procedures led all categories in Fredericksburg by total Medicaid payments for 2024.

Across Virginia, Medicine Services and Procedures placed fourth among all service categories by dollar amount paid from Medicaid in 2024.

From 2019 through 2024, Medicaid payments for Medicine Services and Procedures in Fredericksburg grew by $16,730,983, or 171%. Some periods, particularly in 2022 and 2023, saw especially high annual increases.

Spending in this category was spread across Fredericksburg but concentrated in a handful of ZIP codes. In 2024, ZIP code 22401 saw $13,887,393 in Medicaid payments, 22408 accounted for $10,708,546, and 22407 recorded $1,742,033. In total, these top 3 ZIP codes comprised 99.3% of all Medicaid Medicine Services and Procedures payments in Fredericksburg during the year.

Medicaid spending in the Medicine Services and Procedures category was also focused on a relatively small set of billing codes.

To compare, the 2.2% increase in Fredericksburg’s Medicine Services and Procedures Medicaid payments between 2024 and 2023 was below the 3.8% rise seen across all Medicaid claim categories in the city for the same timeframe.

According to the Centers for Medicare & Medicaid Services, combined federal and state Medicaid expenditures reached about $871.7 billion in fiscal 2023, making up approximately 18% of national health spending. That’s a significant jump from roughly $613.5 billion in 2019, before the COVID-19 pandemic.

This change marks a roughly 40% gain in a few years, mostly because of expanded program rolls and elevated demand for services both during and after pandemic-related disruptions.

Major budget legislation under the Trump administration featured substantial proposals to lower federal Medicaid support and modify the program’s structure. For instance, the “One Big Beautiful Bill Act,” enacted in 2025, is estimated to trim federal Medicaid spending by more than $1 trillion in the next decade and sets policies like work requirements and more cost-sharing—which could mean less coverage or funding for certain enrollees. These measures are expected to transfer more cost responsibility to states and limit future federal Medicaid increases, though the program continues to cover 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.