Lancaster Medicaid COVID-19 claims surpass $2,800 in 2024

According to the U.S. Department of Health and Human Services Medicaid Provider Spending database, Medicaid claims in Lancaster for services billed under HCPCS codes related to COVID-19 totaled at least $2,897 in 2024.

Medicaid is a state-administered, federally- and state-funded public insurance program. It provides coverage for low-income families and individuals, children, seniors, and people with disabilities, making it a significant part of the nation’s health care landscape. Read more at the Commonwealth Fund.

Because Medicaid funding originates from taxpayers, shifts in local billing reveal how government health care resources are distributed among communities.

For this review, COVID-19 services were tracked by identifying HCPCS codes described or classified as “COVID-19” or “coronavirus” within billing records or related data. These totals include only those services explicitly marked as COVID-related, so other potential pandemic-connected claims billed under broader categories are not reflected here.

By comparison, Milwaukee saw the largest Medicaid spending for COVID-19 services in Wisconsin during 2024, with reported claims totaling $561,957 for virus-related care.

Two providers in Lancaster submitted Medicaid claims designated as COVID-19–related for 2024. The most frequently used code, COVID Specific, represented $1,905 of the total.

To put these numbers in perspective, the average Medicaid amount paid per provider for COVID-19–related services in Lancaster was $1,449—lower than the overall Wisconsin average of $10,616 per provider.

COVID-19–specific services contributed noticeably to increased Medicaid spending in Lancaster during the pandemic years.

Between 2020 and 2024, total Medicaid payments covering all other service categories grew by $749,942, showing a 71% increase.

Before the pandemic, average annual Medicaid payments in Lancaster over the previous two years were $875,904.

The Centers for Medicare & Medicaid Services reports that nationwide state and federal Medicaid spending reached around $871.7 billion in fiscal year 2023—about 18% of total health care expenditures in the country. This marks a significant rise from $613.5 billion in 2019, prior to the COVID-19 pandemic.

This growth equals about a 40% increase in just a short span, largely driven by higher enrollment and increased use of medical services during and following the pandemic.

The Trump administration’s recent budget laws introduced major reforms intended to decrease federal Medicaid contributions and overhaul the program’s structure. Notably, the “One Big Beautiful Bill Act,” passed in 2025, is expected to reduce federal Medicaid spending by over $1 trillion over the next 10 years and implements policies such as work requirements and increased cost sharing. These adjustments could restrict coverage or funding for select beneficiaries, shift additional expenses to states, and curb federal Medicaid growth, even as millions continue to rely on the program.

Note: Includes HCPCS codes explicitly labeled for COVID-19 services; totals do not represent all pandemic-related health care spending.

Details for this report were drawn from the U.S. Department of Health and Human Services Medicaid Provider Spending database. Access the primary data here.