In 2024, Medicaid providers in Palo Alto billed $2,527,405 for services categorized under Temporary National Codes (Non-Medicare), based on U.S. Department of Health and Human Services Medicaid Provider Spending database information. This represented a 12.4% rise compared with 2023, when claims for the same category totaled $2,247,675.
Medicaid is operated by state governments and financed through both federal and state contributions. It provides health coverage for people with low incomes, older adults, children, and individuals with disabilities, making it a major component of the nation’s health system.
Because taxpayer funds support Medicaid payments, shifts in local billing highlight how public health care spending is distributed at the community level.
The “Temporary National Codes (Non-Medicare)” service group represents a range of Medicaid-billed services designated by care type using standardized HCPCS and CPT coding systems. This analysis assigned each billing code to one service category using set code prefixes and number ranges, so services could be analyzed as a group without duplication and with consistent year-over-year category rankings.
Though overall Medicaid spending grew in several service groups, Temporary National Codes (Non-Medicare) ranked fourth in Palo Alto by total Medicaid payments in 2024.
Statewide in California, this same category finished seventh for total payments during 2024.
During the five years preceding 2024, Medicaid payments for Temporary National Codes (Non-Medicare) in Palo Alto grew by $640,551, or 20.2%. There were larger annual increases during certain years, notably 2021 and 2020.
While the category’s spending was citywide, the bulk of payments were concentrated within two ZIP codes. In 2024, ZIP code 94303 accounted for $2,399,119 and 94304 made up $128,285. Together, these two areas represented 100% of Medicaid payments tied to Temporary National Codes (Non-Medicare) in Palo Alto for the year.
Payments in this category were also focused among a small set of billing codes.
Comparatively, payments for Temporary National Codes (Non-Medicare) jumped 12.4% from 2023 to 2024, while all Medicaid claim categories in Palo Alto saw a 7.6% change in the same span.
The Centers for Medicare & Medicaid Services reports that total federal and state Medicaid spending reached about $871.7 billion in fiscal year 2023, amounting to roughly 18% of the nation’s total health costs, and up significantly from $613.5 billion in 2019, before the onset of COVID-19.
This growth represents about a 40% surge over several years, mainly due to expanded Medicaid enrollment and greater use of services during and after the pandemic.
Federal budget legislation passed during the Trump administration outlined major proposals to cut federal Medicaid funding and reorganize the program. The “One Big Beautiful Bill Act,” enacted in 2025, is set to reduce federal Medicaid spending by more than $1 trillion over 10 years and introduce policies like work requirements and higher cost-sharing, likely reducing coverage and funding for certain recipients. These modifications are expected to transfer more costs to states and limit increases in federal Medicaid support while the program continues to cover tens of millions across the U.S.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $3,167,955 | 1.2% |
| 2021 | $3,225,503 | 1.8% |
| 2022 | $2,802,330 | -13.1% |
| 2023 | $2,247,675 | -19.8% |
| 2024 | $2,527,405 | 12.4% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | Evaluation and Management | $6,327,541 | 34.6% |
| 2 | Medicine Services and Procedures | $3,015,038 | 16.5% |
| 3 | Radiology Procedures | $2,637,318 | 14.4% |
| 4 | Temporary National Codes (Non-Medicare) | $2,527,405 | 13.8% |
| 5 | Pathology and Laboratory Procedures | $2,165,271 | 11.9% |
| 6 | Anesthesia | $519,978 | 2.8% |
| 7 | National Codes Established for State Medicaid Agencies | $298,077 | 1.6% |
| 8 | Drugs Administered Other than Oral Method | $235,549 | 1.3% |
| 9 | Surgery | $205,272 | 1.1% |
| 10 | Alcohol and Drug Abuse Treatment | $171,175 | 0.9% |
| 11 | Ambulance and Other Transport Services and Supplies | $61,955 | 0.3% |
| 12 | Procedures / Professional Services | $51,262 | 0.3% |
| 13 | Hearing Services | $23,289 | 0.1% |
| 14 | Administrative, Miscellaneous and Investigational | $16,729 | 0.1% |
| 15 | Chemotherapy Drugs | $4,767 | <0.1% |
| 16 | Temporary Codes | $1,996 | <0.1% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| S5102 | Adult day care per diem | $2,399,119 | 12 |
| S0302 | Completed epsdt | $126,332 | 22 |
| S9446 | Pt education noc group | $1,762 | 8 |
| S9445 | Pt education noc individ | $190 | 1 |
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.
