Stanford Medicaid spending on chemotherapy drugs reaches $11,178,101 in 2024

Dr. Mehmet Oz CMS Administrator
Dr. Mehmet Oz CMS Administrator
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Stanford Medicaid providers submitted claims totaling $11,178,101 for services in the Chemotherapy Drugs category in 2024, data from the U.S. Department of Health and Human Services Medicaid Provider Spending database shows. This reflects an increase of 50.2% over 2023, when providers billed $7,442,332 for the same services.

Medicaid is a state-run public health insurance program funded by both federal and state governments. It serves low-income residents, families, seniors, children, and individuals with disabilities, comprising one of the largest segments of the U.S. health care system.

Since Medicaid is funded by taxpayers, trends in local billing levels help illustrate how public health care funds are distributed within a community.

The “Chemotherapy Drugs” service category represents a set of Medicaid-billed services based on the care delivered and standardized HCPCS and CPT code groupings. In this analysis, each billing code was sorted into a single service category using consistent code prefixes and numeric groupings, enabling the grouping of similar services for analysis, maintaining accuracy by avoiding duplicate counts and ensuring reliable historical comparisons.

Despite overall increases across various Medicaid service categories, Chemotherapy Drugs ranked third in total Medicaid payments in Stanford for 2024.

On a statewide level in California, the Chemotherapy Drugs category was 16th by total Medicaid payments in 2024.

Across the five years preceding 2024, Medicaid payments related to the Chemotherapy Drugs category in Stanford grew by $7,936,959, or 244.9%. The rate of spending growth was higher in some years, particularly with notable annual increases observed in 2021 and 2022.

Although spending on Chemotherapy Drugs services was citywide, most payments were concentrated in few ZIP codes. In 2024, ZIP code 94305 saw the highest Medicaid payments for Chemotherapy Drugs at $11,178,101. This represented 100% of the category’s Medicaid payments in Stanford for the year.

Within the Chemotherapy Drugs service category, Medicaid payments were also focused in a small set of billing codes.

For context, Medicaid payments in Stanford tied to Chemotherapy Drugs grew 50.2% from 2023 to 2024, compared to a 26.4% increase seen across all Medicaid claim types in the city over the same period.

According to the Centers for Medicare & Medicaid Services, combined federal and state Medicaid spending was approximately $871.7 billion in fiscal year 2023, constituting about 18% of national health expenditures. This was a significant increase from roughly $613.5 billion in 2019, prior to the COVID-19 pandemic.

The jump represents an approximate 40% increase within a few years, primarily driven by higher enrollment and increased service use during and after the pandemic.

Recent federal budget measures under the Trump administration have included significant proposals to cut federal Medicaid funding and restructure the program. For instance, the “One Big Beautiful Bill Act,” enacted in 2025, is expected to reduce federal Medicaid spending by over $1 trillion over 10 years and brings policies such as work requirements and increased cost-sharing, which could limit coverage and funding for some beneficiaries. The legislation is anticipated to move more financial responsibility to states and restrict the pace of federal Medicaid spending growth, even as the program continues to cover millions nationwide.

Medicaid Payments Tied to Chemotherapy Drugs in Stanford, California Over Five Years

Year Total Medicaid Payments % Change From Previous Year
2020 $3,241,141 -22.9%
2021 $5,533,220 70.7%
2022 $9,326,608 68.6%
2023 $7,442,332 -20.2%
2024 $11,178,101 50.2%
Top Categories by Medicaid Payments in Stanford, California, 2024

Rank Category Medicaid Payments Share of City Total
1 Radiology Procedures $18,879,940 25%
2 Evaluation and Management $13,522,808 17.9%
3 Chemotherapy Drugs $11,178,101 14.8%
4 Pathology and Laboratory Procedures $8,989,941 11.9%
5 Drugs Administered Other than Oral Method $7,562,672 1<0.1%
6 Medicine Services and Procedures $7,525,786 9.9%
7 Anesthesia $4,906,714 6.5%
8 Surgery $1,126,146 1.5%
9 Temporary Codes $721,070 1%
10 Procedures / Professional Services $578,730 0.8%
11 Administrative, Miscellaneous and Investigational $375,567 0.5%
12 Pathology and Laboratory Services $189,747 0.3%
13 Vision Services $38,940 0.1%
14 Ambulance and Other Transport Services and Supplies $28,644 <0.1%
15 National Codes Established for State Medicaid Agencies $14,471 <0.1%
16 Medical And Surgical Supplies $2,747 <0.1%
17 Outpatient PPS $336 <0.1%
18 Hearing Services $0 <0.1%
Top 20 HCPCS Codes Within the Chemotherapy Drugs Category in Stanford, California, 2024

HCPCS Code Description Medicaid Payments Claims
J9271 Inj pembrolizumab $6,185,699 11
J9299 Injection, nivolumab $2,849,461 11
J9144 Daratumumab, hyaluronidase $1,189,075 5
J9035 Bevacizumab injection $780,284 7
J9075 Inj, cyclophosphamide, nos $33,566 4
J9045 Carboplatin injection $25,021 11
J9267 Paclitaxel injection $21,311 11
J9190 Fluorouracil injection $18,659 11
J9217 Leuprolide acetate suspnsion $18,048 4
J9263 Oxaliplatin $14,087 10
J9201 In gemcitabine hcl nos 200mg $12,249 9
J9171 Docetaxel injection $11,988 3
J9395 Injection, fulvestrant $9,123 6
J9305 Inj. pemetrexed nos 10mg $4,787 1
J9206 Irinotecan injection $4,736 4

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.



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