Livermore Medicaid spending on alcohol and drug abuse treatment surges more than 1,050% in 2024

Dr. Mehmet Oz CMS Administrator
Dr. Mehmet Oz CMS Administrator
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In 2024, Medicaid providers in Livermore billed $788,687 for services categorized under Alcohol and Drug Abuse Treatment, data from the U.S. Department of Health and Human Services Medicaid Provider Spending database shows. This amount represents a 1,057.8% rise compared to the prior year, when billing for this service totaled $68,119.

Medicaid, operated by each state and funded jointly by the federal and state governments, provides health coverage to low-income families and individuals, seniors, children, and people with disabilities. It is one of the largest components of the U.S. health care system.

As Medicaid payments are sourced from taxpayers, shifts in local billing levels reflect how public health care dollars are distributed throughout a community.

The Alcohol and Drug Abuse Treatment classification covers a range of Medicaid services based on standardized HCPCS and CPT code groupings. For this analysis, each billing code was mapped to a single service category using defined code prefixes and numeric ranges to ensure related services were grouped together, prevent double counting, and maintain accuracy in year-over-year comparisons.

While Medicaid expenditures increased in several categories, Alcohol and Drug Abuse Treatment represented the highest total Medicaid payments in Livermore in 2024.

Statewide in Maine, Alcohol and Drug Abuse Treatment was the second-largest category by Medicaid payments in 2024.

Between 2019 and 2024, Medicaid payments for Alcohol and Drug Abuse Treatment in Livermore climbed by $243,533, a 23.6% increase. There were periods during these years, notably in 2021 and 2022, where spending saw accelerated year-over-year growth.

Although spending on this category was spread across Livermore, payments were heavily concentrated in a small number of ZIP codes. In 2024, ZIP code 04253 accounted for the full $788,687 in Medicaid payments related to Alcohol and Drug Abuse Treatment. This single ZIP code represented 100% of all such spending in Livermore during the year.

Most Medicaid payments within the Alcohol and Drug Abuse Treatment group were focused on just a few individual billing codes.

When compared with overall Medicaid claim categories in Livermore, payments tied to Alcohol and Drug Abuse Treatment also increased by 1,057.8% from 2023 to 2024, matching the rate of change for all categories in that period.

According to the Centers for Medicare & Medicaid Services, combined federal and state Medicaid spending reached around $871.7 billion in fiscal year 2023, making up about 18% of total national health expenditures. This is a sharp increase from approximately $613.5 billion in 2019, prior to the COVID-19 pandemic.

This jump equates to roughly 40% growth over just a few years, primarily due to wider enrollment and greater utilization during and after the pandemic.

Recent federal budget actions during the Trump administration included major proposals to scale back federal Medicaid funding and change program structures. For example, the “One Big Beautiful Bill Act,” enacted in 2025, is expected to reduce federal Medicaid outlays by more than $1 trillion over the next decade and implements rules such as work requirements and increased cost-sharing, potentially limiting coverage and financial support for some recipients. These adjustments are projected to shift more costs to states and moderate future federal Medicaid growth, while the program continues to support tens of millions of Americans.

Medicaid Payments Tied to Alcohol and Drug Abuse Treatment in Livermore, Maine Over Five Years

Year Total Medicaid Payments % Change From Previous Year
2020 $1,032,219 -31.2%
2021 $1,381,780 33.9%
2022 $863,547 -37.5%
2023 $68,119 -92.1%
2024 $788,687 1057.8%
Top Categories by Medicaid Payments in Livermore, Maine, 2024

Rank Category Medicaid Payments Share of City Total
1 Alcohol and Drug Abuse Treatment $788,687 10<0.1%
Top 20 HCPCS Codes Within the Alcohol and Drug Abuse Treatment Category in Livermore, Maine, 2024

HCPCS Code Description Medicaid Payments Claims
H2021 Com wrap-around sv, 15 min $788,687 9

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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