In 2024, Medicaid providers in Inver Grove Heights billed $4,801,358 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 show. This represented a 5.6% increase from the previous year, when billed services for the same category totaled $4,545,482.
Medicaid operates as a state-managed public insurance program financed in partnership with federal and state governments. Coverage includes low-income individuals, families, seniors, children and those with disabilities, making it a key part of the nation’s health care system.
Because taxpayer funding supports Medicaid payments, trends in billing at the local level highlight how public funds are distributed for health care within communities.
The “National Codes Established for State Medicaid Agencies” category includes a defined group of Medicaid services, identified by specific HCPCS and CPT code sets. For this report, service billing codes were assigned to a single category using consistent prefixes and number ranges, supporting trend analysis without overlap and ensuring accurate rankings over time.
While Medicaid spending increased in several service categories, National Codes Established for State Medicaid Agencies led in total Medicaid payments in Inver Grove Heights in 2024.
Statewide in Minnesota, the National Codes Established for State Medicaid Agencies category was the second-highest by total Medicaid payments for 2024.
Over the five-year period leading up to 2024, payments in this category in Inver Grove Heights rose by $3,646,882, or 315.9%. During certain years—including 2022 and 2023—year-to-year growth was especially strong.
Although care payments within the National Codes Established for State Medicaid Agencies category were dispersed citywide, a few ZIP codes received most of the funds. In 2024, the ZIP codes 55077 and 55076 accounted for $2,690,902 and $2,110,454, respectively. Combined, these ZIP codes represented 100% of all payments in this Medicaid service category in Inver Grove Heights for the year.
Within this service category, Medicaid disbursements were highly concentrated among a relatively small set of billing codes.
Comparatively, while Medicaid spending for National Codes Established for State Medicaid Agencies in Inver Grove Heights grew 5.6% from 2023 to 2024, all Medicaid claim categories in the city increased by 3.1% over the same time frame.
Centers for Medicare & Medicaid Services data indicate that combined federal and state Medicaid spending reached approximately $871.7 billion in fiscal year 2023, making up around 18% of total national health care expenditures. That is up from approximately $613.5 billion in 2019 before the COVID-19 pandemic.
This growth reflects about a 40% increase over a few years, driven by expanded program enrollment and greater use of health services during and after the pandemic period.
Recent federal budget measures under the Trump administration introduced key proposals to lower federal Medicaid spending and modify the structure of the program. The “One Big Beautiful Bill Act,” enacted in 2025, is expected to cut federal Medicaid funding by over $1 trillion over 10 years, introducing measures such as work requirements and higher cost-sharing for beneficiaries. These changes may shift greater costs to states and limit federal funding growth for Medicaid, even as the program serves millions nationwide.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $1,154,475 | 35.5% |
| 2021 | $1,301,915 | 12.8% |
| 2022 | $3,029,055 | 132.7% |
| 2023 | $4,545,482 | 50.1% |
| 2024 | $4,801,357 | 5.6% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | National Codes Established for State Medicaid Agencies | $4,801,357 | 70.2% |
| 2 | Medicine Services and Procedures | $920,526 | 13.5% |
| 3 | Alcohol and Drug Abuse Treatment | $470,230 | 6.9% |
| 4 | Dental Services | $307,834 | 4.5% |
| 5 | Evaluation and Management | $270,371 | 4% |
| 6 | Temporary National Codes (Non-Medicare) | $49,396 | 0.7% |
| 7 | Pathology and Laboratory Procedures | $10,379 | 0.2% |
| 8 | Surgery | $5,211 | 0.1% |
| 9 | Vision Services | $617 | <0.1% |
| 10 | Procedures / Professional Services | $66 | <0.1% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| T2031 | Assist living waiver/diem | $4,624,746 | 33 |
| T1018 | School-based iep ser bundled | $176,611 | 5 |
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.



