Gilbert Medicaid outlays for Medicine Services and Procedures grow to $14.7 million in 2024

According to the U.S. Department of Health and Human Services Medicaid Provider Spending database, Medicaid providers in Gilbert billed $14,653,563 for Medicine Services and Procedures in 2024. This represents a 3% rise from 2023, when claims for the same category amounted to $14,221,171.

Medicaid, a public health insurance effort operated by states with joint state and federal funding, covers low-income families and individuals, seniors, children, and people with disabilities. This program comprises a major portion of the U.S. health care system, and is detailed in this explainer.

Since Medicaid spending is taxpayer funded, fluctuations in billings at the local level offer insight into how community health care funds are allocated.

The “Medicine Services and Procedures” grouping represents an array of Medicaid-billed services, grouped according to standardized HCPCS and CPT code prefixes and set numeric segments. The methodology assigned each billing code to one category, making trends clear and preventing any duplicate counting, which ensured reliable comparisons over time.

Medicine Services and Procedures was the third-largest Medicaid spending category in Gilbert for 2024, as payment increases spanned multiple areas of care.

Statewide in Arizona, Medicine Services and Procedures ranked fifth in total Medicaid payouts for 2024.

Between 2019 and 2024, Medicaid spending for Medicine Services and Procedures in Gilbert rose by $8,440,861—or 135.9%. Notable annual rises occurred during certain years, such as in 2021 and 2022, when growth outpaced prior years.

The spending was mainly clustered in a few ZIP codes citywide. The largest shares of Medicaid payments for this service group came from ZIP code 85234 ($7,069,183), 85295 ($3,061,535), and 85296 ($2,462,707) in 2024. Combined, these areas comprised 85.9% of overall city Medicaid outlays for the group in that year.

Payments were also concentrated across a limited set of individual billing codes within the Medicine Services and Procedures category.

In comparison, while Medicine Services and Procedures claim payments rose by 3% in Gilbert from 2023 to 2024, citywide Medicaid claims across all categories climbed 28.6% over that span.

According to the Centers for Medicare & Medicaid Services, total federal and state Medicaid outlays reached approximately $871.7 billion in fiscal year 2023. That equaled about 18% of nationwide health spending—up sharply from $613.5 billion in 2019, just before the COVID-19 pandemic.

This marks an increase of nearly 40% in a few years, largely spurred by broader Medicaid enrollment and higher utilization in and after the pandemic.

Federal budget initiatives during the Trump administration included major proposals to reduce federal Medicaid funding and restructure the program. The “One Big Beautiful Bill Act,” enacted in 2025, is set to trim federal Medicaid spending by over $1 trillion for the coming decade and to add policies such as work requirements and greater cost-sharing. These changes could reduce both benefits and payments for certain recipients, increasing the burden on states while federal support for Medicaid slows, even as the program continues to cover tens of millions of people 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.