Rapid City Medicaid payments for national code services rise to $36.5 million in 2024

In 2024, Medicaid providers in Rapid City billed $36,477,006 for services classified under the National Codes Established for State Medicaid Agencies, data from the U.S. Department of Health and Human Services Medicaid Provider Spending database shows. This totals a 34.9% increase over 2023, when providers billed $27,032,735 for those services.

Medicaid is an insurance program managed by each state and funded through a partnership between the federal and state governments. The program serves low-income families and individuals, seniors, children and people with disabilities, making it a major component of the U.S. health care system.

Since Medicaid uses public money, fluctuations in local billing reflect how community health care funds are allocated.

The “National Codes Established for State Medicaid Agencies” category encompasses a set of Medicaid-billed services identified by the type of care provided and grouped under standard HCPCS and CPT billing codes. For this analysis, codes were assigned to one service category based on code prefixes and numeric ranges, so related services could be analyzed together without overlap, enabling accurate long-term comparisons.

Medicaid spending rose across several categories, with National Codes Established for State Medicaid Agencies generating the largest total payments in Rapid City in 2024.

The National Codes Established for State Medicaid Agencies category also led all categories statewide in South Dakota by aggregate Medicaid payments in 2024.

From 2019 through 2024, Rapid City’s Medicaid payments for the National Codes Established for State Medicaid Agencies grew by $23,518,803, an increase of 181.5%. The pace of growth accelerated at times, with notable jumps between years in 2021 and 2023.

Although services in this category were provided throughout Rapid City, most payments were concentrated in a few ZIP codes. In 2024, ZIP codes receiving the largest Medicaid payments for these codes included 57702 with $33,633,400, 57701 with $2,652,769 and 57703 with $190,836. These top 3 ZIP codes together accounted for the entire amount billed in this Medicaid category across the city in 2024.

Only a select number of billing codes accounted for the majority of the Medicaid payments within the National Codes Established for State Medicaid Agencies category.

For context, payments for these state Medicaid agency codes in Rapid City rose 34.9% from 2023 to 2024, while the total increase across all Medicaid billing categories in the city was 37.2% during the same time.

According to the Centers for Medicare & Medicaid Services, federal and state Medicaid spending together totaled about $871.7 billion in the 2023 fiscal year. Medicaid accounted for around 18% of all health expenditures nationally, up from about $613.5 billion in 2019, prior to the COVID-19 pandemic.

This growth marks an increase of roughly 40% over several years, mainly due to expanded enrollment and greater use of services during and after the pandemic.

Recent federal budget measures under the Trump administration have included major efforts to cut Medicaid funding and alter the program. The “One Big Beautiful Bill Act,” signed into law in 2025, is set to reduce federal Medicaid spending by more than $1 trillion over the next ten years. The law enacts work requirements and greater cost-sharing, which may limit benefits and funding for some recipients. As a result, states could see higher costs and less federal Medicaid support, despite continued demand for coverage.

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.