In 2024, Medicaid providers in Montrose billed $2,346,686 for Alcohol and Drug Abuse Treatment services, based on the U.S. Department of Health and Human Services Medicaid Provider Spending database. This was a 16.5% increase over 2023, when providers billed $2,014,559 for the same services.
Medicaid is a government-run health insurance program managed by states and funded in partnership by federal and state governments. It serves low-income individuals and families, seniors, children, and people with disabilities, making it a major component of the U.S. health care system.
Since taxpayer funds support Medicaid payments, shifts in local billing amounts reflect how public health care spending is distributed within a community.
The “Alcohol and Drug Abuse Treatment” category includes Medicaid-billed services defined by care type, using standardized HCPCS and CPT code groupings. Each billing code was mapped to a single service category for this analysis, relying on consistent code prefixes and numeric ranges to aggregate related services without overlap, ensuring accurate and unduplicated rankings by year.
Alcohol and Drug Abuse Treatment ranked third among Medicaid service categories in Montrose by total payments in 2024 despite growth in multiple spending areas.
Statewide, Alcohol and Drug Abuse Treatment was also the third-largest category for Medicaid payments in Colorado in 2024.
Looking at the five years before 2024, Medicaid spending for Alcohol and Drug Abuse Treatment in Montrose rose by $989,338, or 72.9%. Notably, spending accelerated during certain periods, including in 2023 and 2020, with strong year-over-year increases.
While payments for Alcohol and Drug Abuse Treatment services extended across Montrose, most funds were concentrated within a small set of ZIP codes. For 2024, ZIP code 81401 accounted for $2,346,685, which represented 100% of the Medicaid payments for this category in Montrose for the year.
Within the Alcohol and Drug Abuse Treatment group, Medicaid outlays were similarly focused among a handful of specific billing codes.
Comparing year-over-year changes, Medicaid payments for Alcohol and Drug Abuse Treatment in Montrose rose 16.5% between 2024 and 2023, whereas all Medicaid claim categories combined posted a 12.1% increase in the city over the same period.
According to the Centers for Medicare & Medicaid Services, joint federal and state Medicaid spending was approximately $871.7 billion in fiscal year 2023, which made up about 18% of total U.S. health expenditures and rose sharply from $613.5 billion in 2019, prior to the COVID-19 pandemic.
This increase equates to roughly 40% growth over several years, mainly due to expanded enrollment and increased use during and after the pandemic.
Recent federal budget measures under the Trump administration have featured noteworthy proposals to scale back federal Medicaid funding and alter the program. For instance, the “One Big Beautiful Bill Act,” enacted in 2025, is expected to reduce federal Medicaid spending by more than $1 trillion over 10 years and introduces policies such as work requirements and higher cost-sharing, which may reduce coverage and funding for some participants. As a result, more costs could shift to states, and the pace of federal Medicaid growth may slow, even as the program remains vital to millions of Americans.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $1,357,347 | 4.5% |
| 2021 | $1,326,936 | -2.2% |
| 2022 | $1,175,608 | -11.4% |
| 2023 | $2,014,559 | 71.4% |
| 2024 | $2,346,685 | 16.5% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | National Codes Established for State Medicaid Agencies | $4,902,833 | 34.5% |
| 2 | Evaluation and Management | $2,746,650 | 19.3% |
| 3 | Alcohol and Drug Abuse Treatment | $2,346,685 | 16.5% |
| 4 | Medicine Services and Procedures | $1,572,188 | 11.1% |
| 5 | Dental Services | $894,054 | 6.3% |
| 6 | Vision Services | $482,628 | 3.4% |
| 7 | Temporary National Codes (Non-Medicare) | $475,086 | 3.3% |
| 8 | Durable Medical Equipment | $265,702 | 1.9% |
| 9 | Ambulance and Other Transport Services and Supplies | $200,808 | 1.4% |
| 10 | Pathology and Laboratory Procedures | $114,956 | 0.8% |
| 11 | Surgery | $81,358 | 0.6% |
| 12 | Radiology Procedures | $53,477 | 0.4% |
| 13 | Medical And Surgical Supplies | $47,846 | 0.3% |
| 14 | Procedures / Professional Services | $10,401 | 0.1% |
| 15 | Durable medical equipment (DME) Medicare administrative contractors (MACs) | $4,643 | <0.1% |
| 16 | Drugs Administered Other than Oral Method | $29 | <0.1% |
| 17 | Temporary Codes | $0 | <0.1% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| H2036 | A/d tx program, per diem | $1,338,649 | 11 |
| H0038 | Self-help/peer svc per 15min | $612,861 | 12 |
| H2017 | Psysoc rehab svc, per 15 min | $188,511 | 27 |
| H0005 | Alcohol and/or drug services | $147,979 | 21 |
| H0004 | Alcohol and/or drug services | $15,635 | 10 |
| H0036 | Comm psy face-face per 15min | $15,531 | 2 |
| H0032 | Mh svc plan dev by non-md | $14,963 | 13 |
| H0001 | Alcohol and/or drug assess | $4,621 | 2 |
| H2021 | Com wrap-around sv, 15 min | $3,553 | 2 |
| H2014 | Skills train and dev, 15 min | $3,192 | 2 |
| H0006 | Alcohol and/or drug services | $1,187 | 2 |
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.
