Eagan sees 24.7% growth in Medicaid payments for state agencies category in 2024

In 2024, Eagan Medicaid providers billed $26,428,876 for services under the National Codes Established for State Medicaid Agencies category, data from the U.S. Department of Health and Human Services Medicaid Provider Spending database shows. This amount was up 24.7% from 2023, when claims in this category reached $21,193,431.

Medicaid is a publicly run health insurance program that is operated by states and financed by both federal and state governments. It serves low-income individuals and families, as well as seniors, children, and people with disabilities, making it a significant component of the U.S. health care system.

Since Medicaid funding comes from taxpayers, changes in local billing reflect how public health care resources are distributed in a community.

The “National Codes Established for State Medicaid Agencies” category includes a range of Medicaid-billed services based on the type of care, using standardized HCPCS and CPT code groups. For this analysis, each billing code was matched to a single service category via standardized prefixes and numeric ranges to study related services together without duplication and to maintain consistent rankings over time.

Medicaid spending across several service areas grew, but in Eagan, National Codes Established for State Medicaid Agencies led all categories by total payments in 2024.

Statewide in Minnesota, National Codes Established for State Medicaid Agencies was the second-highest category for total Medicaid payments in 2024.

In the five years preceding 2024, Eagan’s Medicaid payments for the National Codes Established for State Medicaid Agencies category rose by $6,115,365, an increase of 30.1%. The city saw especially notable annual increases in 2020 and 2022.

Although payments were distributed throughout Eagan, most Medicaid funds in this category were concentrated in a few ZIP codes. In 2024, ZIP code 55122 received $23,290,706, ZIP code 55121 had $2,453,058, and ZIP code 55123 had $685,111. Combined, these 3 ZIP codes made up 100% of Eagan’s Medicaid payments under this category for the year.

A small number of individual codes accounted for the majority of payments within the National Codes Established for State Medicaid Agencies category.

Compared with a 1.6% total rise across all Medicaid claim categories in Eagan between 2024 and 2023, payments specific to the National Codes Established for State Medicaid Agencies category surged by 24.7%.

According to the Centers for Medicare & Medicaid Services, combined state and federal Medicaid outlays reached approximately $871.7 billion in fiscal year 2023. That accounted for about 18% of all national health expenditures, representing a steep rise from roughly $613.5 billion in 2019, before the COVID-19 pandemic.

This 40% increase over several years was primarily due to greater enrollment and increased service usage during and after the pandemic period.

Major federal budget legislation passed under the Trump administration has included proposals to significantly reduce federal Medicaid financing and change program structure. The “One Big Beautiful Bill Act,” enacted in 2025, is expected to cut federal Medicaid funding by more than $1 trillion over the next decade, introducing requirements such as work conditions and increased cost-sharing, which could reduce benefits and funding for certain recipients. These adjustments are anticipated to shift more costs to states and may cap the growth of federal support as Medicaid continues to cover tens of millions nationwide.

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.