Medicaid payments for alcohol and drug abuse treatment in Hastings reach $766,102 in 2024

Hastings Medicaid providers submitted $766,102 in billed services for the Alcohol and Drug Abuse Treatment category in 2024, based on data from the U.S. Department of Health and Human Services Medicaid Provider Spending database. This total represents an 11.8% increase over 2023, when claims for the same service type amounted to $685,216.

Medicaid, a state-run public health insurance program jointly financed by federal and state governments, covers low-income people, seniors, children and those with disabilities and constitutes a major part of the U.S. health care system. Learn more at the Commonwealth Fund explainer.

Because funding for Medicaid is supported by taxpayers, changes in how much is billed at the community level reflect patterns in public spending on health care services.

The Alcohol and Drug Abuse Treatment category includes a collection of Medicaid-billed care services defined by both standardized HCPCS and CPT code groupings. For this analysis, each billing code was assigned only once to a single category using consistent code prefixes and number ranges. This grouping allows related services to be studied collectively, minimizes the chance of double counting, and supports accurate rankings over time.

Although support for other care categories also grew, Alcohol and Drug Abuse Treatment placed second in overall Hastings Medicaid payments for 2024.

Across Minnesota, the Alcohol and Drug Abuse Treatment category had the highest Medicaid payments by category statewide during 2024.

Over the five years through 2024, Medicaid alcohol and drug abuse treatment payments in Hastings grew by $529,203, an increase of 223.4%. At times, the pace of growth picked up significantly, with especially large year-over-year jumps emerging in 2022 and 2021.

The city’s Alcohol and Drug Abuse Treatment spending, while geographically spread, was most highly concentrated in specific ZIP codes. In 2024, ZIP code 55033 saw $766,101 in Medicaid payments associated with this category. The top ZIP code accounted for 100% of such Medicaid payments in Hastings during this period.

A limited number of billing codes accounted for most Alcohol and Drug Abuse Treatment Medicaid spending during 2024.

Comparing year to year, Hastings saw an 11.8% rise in alcohol and drug abuse treatment Medicaid payments between 2023 and 2024, while total Medicaid spending across all categories in the city increased by 45% over the same timeframe.

The Centers for Medicare & Medicaid Services report that federal and state Medicaid spending totaled around $871.7 billion in fiscal 2023—about 18% of all U.S. health spending—up sharply from $613.5 billion in 2019, prior to the COVID-19 pandemic.

This reflects an over 40% increase within just a few years, accelerated largely by more enrollees and higher service use during and after the pandemic.

Recent federal budget laws instituted during the Trump administration have made notable proposals aiming at reducing federal Medicaid funding and modifying its structure. The “One Big Beautiful Bill Act,” passed into law in 2025, is expected to cut federal Medicaid spending by more than $1 trillion over 10 years, while introducing provisions such as work requirements and increased cost sharing, which could limit both funding and coverage for some users. These adjustments are forecast to shift greater costs to state governments and slow federal assistance growth, as Medicaid continues serving 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.