Medicaid payments for alcohol and drug abuse treatment in Milwaukie increase to $3,971,743 in 2024

Milwaukie Medicaid providers billed $3,971,743 for alcohol and drug abuse treatment services in 2024, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. This represents a 26.2% increase over 2023, when providers claimed $3,147,025 for these services.

Medicaid is a public health insurance program jointly funded by state and federal governments and operated by the states. It covers low-income families and individuals, children, seniors, and people with disabilities, and it is a key component of the U.S. health care system.

Since Medicaid is financed by taxpayers, shifts in local billing reflect how communities allocate public health care funds.

The “Alcohol and Drug Abuse Treatment” classification is based on Medicaid claims sorted by type of care using HCPCS and CPT code groupings. In this analysis, each code was assigned to only one category based on established code prefixes and number ranges, allowing for unified tracking of related services without overlap and ensuring precise rankings over time.

Spending for alcohol and drug abuse treatment services ranked second among all Medicaid-billed categories in Milwaukie for 2024, despite overall Medicaid expenditures rising across multiple classifications.

Statewide in Oregon, alcohol and drug abuse treatment was the second-highest Medicaid expenditure category in 2024.

From 2019 through 2024, Medicaid expenditures linked to alcohol and drug abuse treatment in Milwaukie surged by $2,005,381—or 102%. Periods of especially high year-over-year growth were recorded in 2020 and 2023.

Although these expenditures spread across Milwaukie, they were heavily concentrated within select ZIP codes. The 97267 ZIP code accounted for $3,971,743 in 2024, representing 100% of Medicaid payments in this service category for the city during the year.

Activity within the alcohol and drug abuse treatment category was concentrated among a small selection of individual billing codes.

Between 2023 and 2024, Medicaid payments for alcohol and drug abuse treatment in Milwaukie increased 26.2%, compared to an overall 0.2% change for all categories of Medicaid claims locally in the same period.

Centers for Medicare & Medicaid Services data show combined federal and state Medicaid spending reached about $871.7 billion during fiscal year 2023, making up roughly 18% of total national health expenses—a major rise from approximately $613.5 billion in 2019, before the COVID-19 public health emergency.

This growth of nearly 40% over several years was fueled mainly by broader enrollment and increased utilization during and following the pandemic.

Federal budget legislation under the Trump administration has proposed major changes to Medicaid funding and its structure. The “One Big Beautiful Bill Act,” enacted in 2025, is forecast to reduce federal Medicaid disbursements by more than $1 trillion over the coming decade by introducing components like work requirements and greater cost-sharing, which may lower funding or benefits for some enrollees. These adjustments are expected to raise states’ financial share and limit the growth of federal Medicaid support, even as the system continues to serve 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.