Olathe Medicaid providers billed a total of $71,279 in 2024 for claims within the Medicine Services and Procedures category, according to data from the U.S. Department of Health and Human Services Medicaid Provider Spending database. This represented an 8.2% rise from 2023, when the same services brought in $65,895 through claims.
Medicaid, which is run by individual states and jointly funded by both the federal and state governments, provides health insurance coverage for low-income individuals and families, older adults, children, and people with disabilities, making it a central component of the U.S. health care landscape. More information on Medicaid’s funding structure is available at the Commonwealth Fund website.
Because taxpayer dollars support Medicaid payments, shifts in local billing volumes reflect how a community allocates public funds for health care services.
The “Medicine Services and Procedures” category includes grouped Medicaid-billed services identified by care type, using standardized HCPCS and CPT code classifications. For the purposes of this data, each bill code fits a single service category aligned by code prefix and number range. This methodology allows a comprehensive analysis of related billed services while avoiding duplication and preserving ranking accuracy over time.
While multiple Medicaid service groups experienced spending increases, Medicine Services and Procedures was the highest-ranking category in Olathe for total Medicaid payments during 2024.
Statewide in Colorado, Medicine Services and Procedures placed fifth overall for total Medicaid payments during 2024.
Between 2020 and 2024, Medicaid payments connected to the Medicine Services and Procedures category in Olathe grew by $9,001, or 11.2%. Spending expanded most rapidly during selected intervals, which included notable annual increases in 2021 and 2023.
Although Medicine Services and Procedures costs were incurred citywide, Medicaid payments mainly came from a small group of ZIP codes. In 2024, ZIP code 81425 contributed the entirety—$71,279—of Medicaid payments for this category. Thus, the leading ZIP code accounted for 100% of all Medicine Services and Procedures Medicaid payments recorded in Olathe that year.
Within Medicine Services and Procedures, Medicaid payments were focused on a limited subset of billing codes within the category.
Comparatively, Medicaid payments for Medicine Services and Procedures in Olathe grew 8.2% between 2023 and 2024, while payments for all Medicaid claim categories in the city during that time rose by 29.2%.
The Centers for Medicare & Medicaid Services calculates that combined federal and state Medicaid spending totaled approximately $871.7 billion for fiscal year 2023. This sum accounted for nearly 18% of the nation’s total health spending, representing a significant rise from roughly $613.5 billion in 2019, before the start of the COVID-19 pandemic.
This increase amounts to about 40% growth over just a few years, primarily due to higher enrollment and increased service usage during and after the pandemic.
Recent federal budget measures passed during the Trump administration have introduced several significant proposals impacting federal Medicaid finances and program design. The “One Big Beautiful Bill Act,” enacted in 2025, is expected to reduce federal Medicaid expenditures by more than $1 trillion over 10 years, adding features such as work requirements and heightened cost-sharing that may reduce both funding and coverage for certain beneficiaries. These changes are predicted to transfer more cost to states and curtail increases in federal support, while the program continues serving millions across the country.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $80,280 | -93.5% |
| 2021 | $150,835 | 87.9% |
| 2022 | $63,451 | -57.9% |
| 2023 | $65,894 | 3.9% |
| 2024 | $71,279 | 8.2% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | Medicine Services and Procedures | $71,279 | 57.5% |
| 2 | Ambulance and Other Transport Services and Supplies | $50,290 | 40.6% |
| 3 | Evaluation and Management | $1,293 | 1% |
| 4 | Dental Services | $915 | 0.7% |
| 5 | Procedures / Professional Services | $202 | 0.2% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| 90837 | Psytx w pt 60 minutes | $68,477 | 12 |
| 90785 | Psytx complex interactive | $2,801 | 12 |
Note: HCPCS codes are displayed for informational purposes within the category. All category totals and rankings reflect standardized service group analysis, not single billing codes.
Details in this article use information from the U.S. Department of Health and Human Services Medicaid Provider Spending database. Source data is available here.


