Berea Medicaid payments for alcohol and drug abuse treatment grew to $1.46 million in 2024

In 2024, Medicaid providers billed a total of $1,458,037 for alcohol and drug abuse treatment services in Berea, based on figures from the U.S. Department of Health and Human Services Medicaid Provider Spending database. This represented a 70.7% rise over 2023, when claims for these services totaled $854,207.

Medicaid, which operates as a state-administered health insurance program supported by both federal and state resources, insures low-income people and families, as well as seniors, children, and those with disabilities. It is one of the most significant pieces of the U.S. health care structure.

Because tax dollars make up the funding for Medicaid payments, fluctuations in billing amounts at the community level reflect shifts in public health expenditures.

The “Alcohol and Drug Abuse Treatment” service group consists of Medicaid payments for relevant care, which are defined through designated HCPCS and CPT codes. Individual codes were mapped exclusively to specific service groups for this review, ensuring related services are consolidated and preventing redundant listings while maintaining accurate year-to-year rankings.

While multiple service categories saw higher Medicaid expenditures, alcohol and drug abuse treatment stood as the third largest Medicaid spending category in Berea for 2024.

Statewide in Kentucky, alcohol and drug abuse treatment was also third in total Medicaid spending categories in 2024.

During the five years through 2024, Medicaid disbursements for alcohol and drug abuse treatment in Berea increased by $1,042,754—a 251.1% climb—with some periods like 2020 and 2021 seeing especially strong annual gains.

Though all Medicaid payments in this treatment category were dispersed locally, most were concentrated within a few ZIP codes. In 2024, ZIP code 40403 accounted for all $1,458,037 in payments linked to alcohol and drug abuse treatment, making up 100% of the city’s spending in this area that year.

Additionally, within this service group, most Medicaid payments centered on a handful of billing codes only.

Medicaid payments for alcohol and drug abuse treatment in Berea increased 70.7% from 2023 to 2024, while citywide payments across all Medicaid claim types shifted up just 1% over the same period.

Centers for Medicare & Medicaid Services data shows total federal and state Medicaid outlays reached about $871.7 billion in fiscal 2023, roughly 18% of the nation’s health care spending. This was up significantly from $613.5 billion in 2019, before the start of the COVID-19 pandemic.

This expansion marks an increase of about 40% within several years, fueled primarily by higher enrollment and increased services during and after the pandemic.

Federal budget measures during the Trump administration have included major proposals to reduce the federal Medicaid contribution and adjust program structure. The “One Big Beautiful Bill Act,” enacted in 2025, is expected to reduce federal Medicaid spending by over $1 trillion over a decade and brings new requirements like mandatory work and higher cost-sharing, measures likely to limit funding and eligibility for certain recipients. These policy changes are poised to transfer fiscal responsibility to states and slow the growth in federal Medicaid spending, while tens of millions of people continue to benefit from the program.

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.