Medicaid payments for national codes rise 6.3% in Vermillion in 2024

In 2024, Medicaid providers in Vermillion billed $4,685,954 for services categorized under the National Codes Established for State Medicaid Agencies, using data from the U.S. Department of Health and Human Services Medicaid Provider Spending database. The total marked a 6.3% growth from 2023, when $4,409,033 in claims were submitted for the same services.

Medicaid operates as a statewide public health insurance program, jointly funded by federal and state governments, covering low-income individuals and families, seniors, children and people with disabilities. This coverage places Medicaid among the largest components of the U.S. health care system.

Because taxpayer dollars support Medicaid, trends in local billing highlight how public health care resources are distributed within the community.

The “National Codes Established for State Medicaid Agencies” category represents a selection of Medicaid-billed services, grouped by the type of care provided and defined by standardized HCPCS and CPT code groupings. For this analysis, each code was linked to a single category based on prefixes and numeric ranges, allowing analysts to examine related services together without overlap and to keep the annual rankings consistent.

Spending on Medicaid services increased in several categories, but National Codes Established for State Medicaid Agencies held the top position in Vermillion for total Medicaid payments in 2024.

Across South Dakota, the National Codes Established for State Medicaid Agencies group also received the highest Medicaid payments statewide in 2024.

Over the five years preceding 2024, Vermillion recorded a rise of $2,406,841—or 105.6%—in total Medicaid payments tied to this category. Growth accelerated in particular periods, with sizeable year-to-year increases observed in 2021 and again in 2023.

While spending on these services was distributed in different parts of the city, the majority occurred in a small number of ZIP codes. In particular, ZIP code 57069 accounted for $4,685,953 of the Medicaid payments in this category during 2024, making up the entire total tracked for Vermillion that year.

Within this service category, Medicaid spending was mainly distributed among few billing codes.

For perspective, while National Codes Established for State Medicaid Agencies showed a 6.3% year-over-year increase in Vermillion, overall Medicaid claim payments for all types of providers in the city rose by 2.5% in the same time frame.

According to the Centers for Medicare & Medicaid Services, total federal and state Medicaid spending was about $871.7 billion in fiscal year 2023, or around 18% of national health expenditures. This represents a sharp climb from about $613.5 billion in 2019, prior to the COVID-19 pandemic.

This approximate 40% surge in spending over several years reflects larger enrollment and increased use both during and following the pandemic.

Recent changes in federal budget law under the Trump administration have included major proposals to cut federal contributions to Medicaid and redesign the program. For example, the “One Big Beautiful Bill Act,” enacted in 2025, is expected to slash more than $1 trillion in federal Medicaid money over a decade and implement policies such as work requirements and higher cost-sharing, possibly reducing funding and beneficiary coverage. These policy shifts are projected to shift additional cost burdens to state governments and restrain federal Medicaid spending growth even as enrollment remains extensive.

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.