In 2024, Indiana’s Medicaid providers submitted $6,328,045 in claims for services in the Alcohol and Drug Abuse Treatment category, according to data provided by the U.S. Department of Health and Human Services Medicaid Provider Spending database. This figure represents a 9.1% rise from 2023, when claims in this category totaled $5,799,913.
Medicaid operates as a public health insurance program, administered by each state and jointly funded by federal and state governments. The program covers a range of Americans, including those with low incomes, seniors, children, and individuals with disabilities, and is a major component of the U.S. health care system.
Public funding supports Medicaid, so shifts in billing totals help illustrate how community health care funding is distributed.
The “Alcohol and Drug Abuse Treatment” category encompasses a range of Medicaid-billed services based on care type, categorized according to standardized HCPCS and CPT code sets. For this review, each billing code was placed within a specific service group by assigning codes based on shared prefixes and numeric intervals, which allows for consistent reporting, accurate rankings, and avoids duplicate counting.
Alcohol and Drug Abuse Treatment led all service categories in Indiana for Medicaid payments in 2024, as overall spending in Medicaid increased across a variety of services.
Pennsylvania also saw Alcohol and Drug Abuse Treatment at the top among statewide Medicaid payment categories for 2024.
During the five years preceding 2024, Indiana saw Medicaid payments in the Alcohol and Drug Abuse Treatment group climb by $5,505,103, marking an increase of 669%. Notable year-over-year growth occurred during certain intervals, especially in 2021 and 2023.
Although service payments spanned several areas in the city, the highest share was concentrated in a few ZIP codes. In 2024, ZIP code 15701 accounted for $6,328,044, with the largest single ZIP code representing all Medicaid payments for this treatment category statewide.
Within this service group, most Medicaid payments were linked to a small subset of individual billing codes.
When compared with overall Medicaid claims in Indiana, Alcohol and Drug Abuse Treatment saw a 9.1% increase from 2023 to 2024, while total Medicaid claims across all categories in the city rose by 1% over the same span.
The Centers for Medicare & Medicaid Services reports that combined federal and state Medicaid expenditures reached approximately $871.7 billion in fiscal year 2023, accounting for about 18% of nation-wide health spending. This is a significant jump from $613.5 billion in 2019, prior to the COVID-19 pandemic.
The nearly 40% increase over those years was primarily fueled by broader enrollment and increased use of services during and after the pandemic.
Recent federal budget measures passed during the Trump administration have aimed to decrease federal Medicaid spending and overhaul funding structures. The “One Big Beautiful Bill Act,” enacted in 2025, is expected to reduce federal Medicaid outlays by more than $1 trillion over the next 10 years while adding policies like work requirements and higher cost-sharing, which may affect coverage and funding for some recipients. These changes are likely to shift more financial responsibility to states and slow growth in federal support, though Medicaid will continue to provide coverage for tens of millions in the U.S.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $822,941 | – |
| 2021 | $4,078,467 | 395.6% |
| 2022 | $4,681,360 | 14.8% |
| 2023 | $5,799,912 | 23.9% |
| 2024 | $6,328,044 | 9.1% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | Alcohol and Drug Abuse Treatment | $6,328,044 | 43.2% |
| 2 | Medicine Services and Procedures | $2,547,020 | 17.4% |
| 3 | National Codes Established for State Medicaid Agencies | $1,713,035 | 11.7% |
| 4 | Evaluation and Management | $1,675,720 | 11.4% |
| 5 | Ambulance and Other Transport Services and Supplies | $1,191,510 | 8.1% |
| 6 | Procedures / Professional Services | $442,101 | 3% |
| 7 | Pathology and Laboratory Procedures | $241,935 | 1.7% |
| 8 | Durable Medical Equipment | $176,212 | 1.2% |
| 9 | Medical And Surgical Supplies | $93,352 | 0.6% |
| 10 | Vision Services | $92,927 | 0.6% |
| 11 | Dental Services | $50,382 | 0.3% |
| 12 | Radiology Procedures | $43,490 | 0.3% |
| 13 | Orthotic Procedures and services | $31,623 | 0.2% |
| 14 | Temporary National Codes (Non-Medicare) | $8,801 | 0.1% |
| 15 | Durable medical equipment (DME) Medicare administrative contractors (MACs) | $6,463 | <0.1% |
| 16 | Surgery | $4,602 | <0.1% |
| 17 | Pathology and Laboratory Services | $168 | <0.1% |
| 18 | Drugs Administered Other than Oral Method | $2 | <0.1% |
| 19 | Temporary Codes | $0 | <0.1% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| H2034 | A/d halfway house, per diem | $2,450,266 | 12 |
| H0036 | Comm psy face-face per 15min | $1,429,758 | 12 |
| H0004 | Alcohol and/or drug services | $880,326 | 23 |
| H0035 | Mh partial hosp tx under 24h | $587,312 | 19 |
| H0015 | Alcohol and/or drug services | $524,985 | 11 |
| H0034 | Med trng & support per 15min | $424,166 | 11 |
| H0046 | Mental health service, nos | $20,553 | 2 |
| H0047 | Alcohol/drug abuse svc nos | $9,535 | 2 |
| H2011 | Crisis interven svc, 15 min | $1,060 | 8 |
| H0030 | Alcohol and/or drug hotline | $80 | 11 |
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.
