Medicaid spending on alcohol and drug treatment climbs 6.4% in Oregon City for 2024

In 2024, Oregon City Medicaid providers billed $988,880 for Alcohol and Drug Abuse Treatment services, as reported by the U.S. Department of Health and Human Services Medicaid Provider Spending database. This represented a 6.4% rise from 2023, when $929,828 in claims were submitted for these services.

Medicaid, a public health insurance program managed by each state and co-funded by federal and state governments, covers low-income people, families, seniors, children, and those with disabilities—making it a significant part of the U.S. health care system.

Because Medicaid is funded by taxpayers, variations in local billing reflect how communities allocate public health care funds.

The “Alcohol and Drug Abuse Treatment” group includes types of Medicaid-billed services categorized by the nature of care, based on standardized HCPCS and CPT code groupings. For these figures, each billing code was assigned to a single category with consistent code prefixes and number ranges to analyze related services as a whole and prevent double counting, ensuring reliable rankings over time.

Medicaid spending increased across a number of service categories; Alcohol and Drug Abuse Treatment was the fourth largest by Medicaid payments in Oregon City in 2024.

Statewide in Oregon, Alcohol and Drug Abuse Treatment was the second largest Medicaid spending category in 2024.

From 2019 to 2024, Medicaid payments for Alcohol and Drug Abuse Treatment in Oregon City grew by $160,684, or 19.4%. Spending accelerated at several points, with significant year-over-year increases noted in 2020 and 2023.

While Alcohol and Drug Abuse Treatment payments were recorded across Oregon City, most were concentrated in a limited number of ZIP codes. In 2024, the 97045 ZIP code accounted for $988,880. Altogether, the top 1 ZIP codes represented 100% of Medicaid payments for this service in the city that year.

Payments within the Alcohol and Drug Abuse Treatment category were distributed among a small set of individual billing codes.

Comparatively, Medicaid payments for Alcohol and Drug Abuse Treatment in Oregon City grew by 6.4% between 2024 and 2023, while total Medicaid claims for all categories in the city increased by 7.1% over the same time frame.

According to the Centers for Medicare & Medicaid Services, combined federal and state Medicaid expenditures reached about $871.7 billion in fiscal year 2023, making up roughly 18% of the nation’s total health spending. This was a sharp increase from about $613.5 billion in 2019, before the COVID-19 pandemic.

This rise amounts to roughly 40% over just a few years, primarily attributed to greater enrollment and increased service use during and following the pandemic.

Recent federal budget measures under the Trump administration proposed major reductions to federal Medicaid funding and a restructuring of the program. The “One Big Beautiful Bill Act,” signed into law in 2025, is expected to reduce federal Medicaid costs by over $1 trillion over the next decade, introducing provisions such as work requirements and higher cost-sharing. These changes could limit coverage and federal funding for some, shifting more responsibility to states while Medicaid continues serving tens of millions of Americans.

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.