Cupertino sees 530.7% rise in Medicaid payments for medical and surgical supplies in 2024

In 2024, Cupertino Medicaid providers submitted $23,763 in billings for Medical And Surgical Supplies services, data from the U.S. Department of Health and Human Services Medicaid Provider Spending database shows. This amount represents a 530.7% rise compared with 2023, when claims for this service totaled $3,768.

Medicaid, a public health insurance initiative, is run at the state level and is supported by both federal and state governments. The program covers low-income people, seniors, children, and those with disabilities, making it a significant component of U.S. health care.

Since Medicaid payments come from public tax sources, fluctuations in local spending highlight the distribution of community health care funding.

The “Medical And Surgical Supplies” category includes a selection of Medicaid services grouped by the type of care, based on standardized HCPCS and CPT codes. For this analysis, each code was assigned to a single service category using defined code prefixes and number ranges to group related services together, avoiding duplicate counts and maintaining accurate rankings over time.

Though Medicaid spending rose in several service areas, Medical And Surgical Supplies was third overall in 2024 for Cupertino by total Medicaid payments.

Statewide, in California, Medical And Surgical Supplies placed 13th in Medicaid payments in 2024.

Between 2019 and 2024, Cupertino’s Medicaid spending on Medical And Surgical Supplies increased by $20,689, equating to a 673% rise. There were particularly strong gains in 2023 and 2022, as year-over-year spending accelerated during some intervals.

Spending tied to Medical And Surgical Supplies services in Cupertino was relatively concentrated by location, with a handful of ZIP codes accounting for most of the payments. In 2024, ZIP code 95014 alone recorded $23,763 in Medicaid payments for the category, contributing 100% of the total within the city that year.

Additionally, a limited number of billing codes accounted for most of the spending within this category.

For context, the 530.7% year-over-year increase in Medical And Surgical Supplies Medicaid payments between 2024 and 2023 was significantly higher than the 25.2% change across all claim categories citywide for the same timeframe.

According to the Centers for Medicare & Medicaid Services, combined federal and state Medicaid spending totaled about $871.7 billion in fiscal 2023, roughly 18% of overall national health expenditures, which marks a sharp increase from nearly $613.5 billion in 2019, before the onset of the COVID-19 pandemic.

This growth is about 40% over a few years and has been driven chiefly by greater Medicaid enrollment and increased utilization during and after the pandemic.

Federal budget legislation enacted during the Trump administration has included substantial provisions to reduce federal Medicaid funding and alter the program’s structure. Notably, the “One Big Beautiful Bill Act,” signed in 2025, is forecasted to cut over $1 trillion in federal Medicaid funding over the next decade and introduces changes such as work requirements and more cost-sharing, potentially reducing usage and coverage for some recipients. These shifts are expected to result in increased costs for states and may restrain federal Medicaid growth while the program continues to support tens of millions of residents.

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.