Medicaid payments linked to state-defined national codes increase 9.1% in Ludlow for 2024

In 2024, Ludlow Medicaid providers billed $439,539 for services under the National Codes Established for State Medicaid Agencies category, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. This was a 9.1% rise from the $402,965 reported in 2023 for the same services.

Medicaid is a joint federal-state public health insurance program for low-income individuals and families, seniors, children, and people with disabilities, making it a significant part of the U.S. health care system. Funding comes from both state and federal sources, according to the Commonwealth Fund.

Because Medicaid is taxpayer-funded, local shifts in billing show how public health care finances are allocated within a community.

The “National Codes Established for State Medicaid Agencies” category includes a set of Medicaid-billed services defined by specific care types, using standardized HCPCS and CPT code groups. Each billing code for this review was sorted into a single service category based on uniform code prefixes and number ranges, ensuring related care is grouped while avoiding overlaps and maintaining accurate yearly comparisons.

Although Medicaid payments rose in several service categories, National Codes Established for State Medicaid Agencies represented the largest share of total Medicaid payments in Ludlow for 2024.

Statewide, the National Codes Established for State Medicaid Agencies also ranked first in total Medicaid payments in Massachusetts in 2024.

Over the five-year period ending in 2024, Ludlow’s Medicaid payments for this category increased by $163,354, representing 59.1% growth. This acceleration was most notable in certain periods, with significant year-over-year gains noted in 2022 and 2023.

Medicaid payments for this category were distributed throughout the city but heavily concentrated in a small number of ZIP codes. In 2024, ZIP code 01056 accounted for $439,538. Altogether, the top 1 ZIP codes comprised 100% of all Medicaid payments for this category in Ludlow during the year.

Payments within this category were also concentrated across a small number of billing codes.

Between 2024 and 2023, Ludlow’s 9.1% growth rate in Medicaid payments for this category outpaced the 2.6% change across all Medicaid claim categories in the city during the same interval.

According to the Centers for Medicare & Medicaid Services, federal and state Medicaid spending reached about $871.7 billion in fiscal year 2023. This accounted for nearly 18% of total U.S. health expenditures, up significantly from $613.5 billion in 2019, before the COVID-19 pandemic.

This jump marks approximately 40% growth within several years, driven in large part by expanded enrollment and increased use through and following the pandemic period.

Recent federal budget measures under the Trump administration have featured major initiatives to reduce federal Medicaid funding and revise the structure of the program. For instance, the “One Big Beautiful Bill Act,” enacted in 2025, is forecasted to cut over $1 trillion in federal Medicaid expenditures over ten years, with the inclusion of work requirements and greater cost-sharing that could reduce access and resources for some individuals. These policies are expected to transfer more financial responsibility to states and slow federal Medicaid expansion, even as millions continue to rely on the program nationwide.

Note: HCPCS codes are included for information within the category. Totals and rankings refer to groupings by standardized service categories, not by individual codes.

The details in this story were drawn from the U.S. Department of Health and Human Services Medicaid Provider Spending database. Source data can be found here.