Evaluation and Management Medicaid payments in Rapid City rise to $25.6 million in 2024

In 2024, Medicaid providers in Rapid City submitted $25,625,237 in claims for services categorized as Evaluation and Management, based on figures from the U.S. Department of Health and Human Services Medicaid Provider Spending database. This represented a 45.9% rise from 2023, when claims for these services reached $17,568,963.

Medicaid, a state-administered health insurance program with joint federal and state funding, provides coverage for low-income people and families, seniors, children, and individuals with disabilities. It remains a central component of the U.S. health care system.

Because taxpayer dollars fund Medicaid, changes in local billing reveal how health care funds are distributed within communities.

The “Evaluation and Management” group includes a range of Medicaid-billed services defined by the care provided and identified by standardized HCPCS and CPT code groupings. For this report, each code was categorized using unified code prefixes and ranges, ensuring services were counted only once and accurate trends and rankings could be tracked over time.

While Medicaid expenditures rose in several service groups, Evaluation and Management ranked as the second-largest category by total Medicaid spending in Rapid City for 2024.

Across South Dakota, Evaluation and Management also held the second spot for total Medicaid spending in 2024.

During the five years before 2024, Medicaid payments in Rapid City for Evaluation and Management services climbed by $20,156,900, equivalent to a 368.6% increase. Spending climbed faster in specific years, with notable year-over-year gains noted in both 2021 and 2022.

Although Evaluation and Management care-related spending was citywide, most payments were concentrated in a small number of ZIP codes. In 2024, leading ZIP codes for Medicaid payments in this category were 57702 with $15,009,013, 57701 at $10,615,170, and 57703 with $1,053. Collectively, these 3 ZIP codes represented 100% of Medicaid payments associated with Evaluation and Management services in the city for the year.

Medicaid claims within Evaluation and Management also focused on a relatively small set of billing codes.

For reference, the 45.9% increase in Rapid City’s Evaluation and Management Medicaid spending between 2024 and 2023 compares to 37.2% growth across all local Medicaid claim categories for the same period.

According to the Centers for Medicare & Medicaid Services, federal and state Medicaid spending combined reached about $871.7 billion in the 2023 fiscal year, making up around 18% of total national health outlays. That represents a significant jump from roughly $613.5 billion in 2019, before the COVID-19 pandemic began.

This $871.7 billion figure reflects nearly 40% growth in just a few years, primarily due to expanded enrollment and higher health care usage during and after the pandemic.

Under recent federal budget legislation from the Trump administration, sizable reductions have been proposed for federal Medicaid contributions and the program’s structure. For example, the “One Big Beautiful Bill Act,” enacted in 2025, is forecasted to reduce federal Medicaid spending by over $1 trillion over a decade. It brings new requirements such as work conditions and increased cost-sharing, which could narrow coverage and lower funding for some recipients. These provisions are likely to push more responsibility onto states and slow the growth of federal support, even as Medicaid serves 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.