Mountain City Medicaid providers submitted $3,552,716 in claims forAlcohol and Drug Abuse Treatment services in 2024, the U.S. Department of Health and Human Services Medicaid Provider Spending database shows. This is a 16.5% increase from 2023, when $3,049,021 was billed for the same service category.
Medicaid, a joint state and federal program, insures low-income individuals, families, seniors, children, and people with disabilities. It is among the largest components of the nation’s health care system, funded by both federal and state governments.
Since Medicaid is funded by taxpayers, local changes in billing reflect how public health care funds are distributed within a community.
The Alcohol and Drug Abuse Treatment category covers a set of Medicaid-billed services designated by type of care provided, using standard HCPCS and CPT coding groups. For this report, service categories were assigned based on consistent code ranges and prefixes, ensuring that comparisons capture related services accurately, without overlapping or double-counting claims.
Alcohol and Drug Abuse Treatment held the second spot among Medicaid service categories by total payments in Mountain City during 2024, as overall Medicaid spending increased in several areas.
Statewide across Tennessee, Alcohol and Drug Abuse Treatment was ranked the third-largest Medicaid payment category in 2024.
Over the five-year span prior to 2024, Medicaid payments for Alcohol and Drug Abuse Treatment services in Mountain City rose by $1,777,257, or 100.1%. Growth accelerated at times, with the most significant annual increases occurring in 2020 and 2023.
Though Medicaid spending in this category was citywide, most payments were concentrated in a few ZIP codes. In 2024, ZIP code 37683 was associated with $3,552,715 in related Medicaid payments, making up the entire share for Alcohol and Drug Abuse Treatment category payments in Mountain City that year.
Among Alcohol and Drug Abuse Treatment services, a small number of HCPCS billing codes accounted for most Medicaid payments.
Comparing the change in activity, Medicaid payments tied to Alcohol and Drug Abuse Treatment in Mountain City grew by 16.5% between 2024 and 2023, while all Medicaid claim categories citywide increased by 1.6% in the same period.
According to the Centers for Medicare & Medicaid Services, federal and state Medicaid spending combined to reach about $871.7 billion in fiscal year 2023. This accounted for roughly 18% of total national health expenditures and marked a significant jump from approximately $613.5 billion in 2019, before the COVID-19 pandemic.
This increase reflects about 40% growth in just a few years, driven mainly by higher enrollment and service use during and after the pandemic.
Recent federal budget measures under the Trump administration included large-scale proposals to decrease federal Medicaid funding and revise the program. The “One Big Beautiful Bill Act,” enacted in 2025, is forecast to reduce federal Medicaid spending by more than $1 trillion over 10 years and introduces initiatives such as work requirements and higher cost-sharing that could shrink coverage for certain recipients. The changes are likely to shift more costs to states and slow federal Medicaid expansion, while the program continues to cover tens of millions of people.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $1,775,459 | 335.6% |
| 2021 | $1,690,965 | -4.8% |
| 2022 | $1,680,154 | -0.6% |
| 2023 | $3,049,020 | 81.5% |
| 2024 | $3,552,715 | 16.5% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | National Codes Established for State Medicaid Agencies | $15,891,329 | 77.3% |
| 2 | Alcohol and Drug Abuse Treatment | $3,552,715 | 17.3% |
| 3 | Evaluation and Management | $756,084 | 3.7% |
| 4 | Ambulance and Other Transport Services and Supplies | $140,499 | 0.7% |
| 5 | Temporary National Codes (Non-Medicare) | $105,331 | 0.5% |
| 6 | Pathology and Laboratory Procedures | $61,149 | 0.3% |
| 7 | Medicine Services and Procedures | $50,655 | 0.2% |
| 8 | Radiology Procedures | $2,487 | <0.1% |
| 9 | Surgery | $2,326 | <0.1% |
| 10 | Dental Services | $816 | <0.1% |
| 11 | Procedures / Professional Services | $281 | <0.1% |
| 12 | Drugs Administered Other than Oral Method | $250 | <0.1% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| H2020 | Ther behav svc, per diem | $2,285,494 | 10 |
| H0019 | Alcohol and/or drug services | $1,267,221 | 10 |
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.