In 2024, Medicaid providers in Winchester billed $6,141,111 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 2.3% rise over 2023, when claims for the same category totaled $6,003,107.
Medicaid is a state-administered public health insurance program that receives joint funding from federal and state governments. It serves low-income people, families, seniors, children, and those with disabilities, making it one of the country’s largest health coverage programs.
As Medicaid dollars are taxpayer-funded, shifts in local billing offer a snapshot of public health resources allocated within the community.
The “Alcohol and Drug Abuse Treatment” label includes Medicaid-billed services categorized according to the care provided, based on standardized HCPCS and CPT groupings. For this evaluation, each code was connected to one service type using consistent code prefixes and numeric ranges, supporting grouped analysis without double-counting or affecting long-term payment rankings.
While Medicaid spending rose among several service areas, Alcohol and Drug Abuse Treatment was the second-largest category by Medicaid outlays in Winchester for 2024.
Statewide, the Alcohol and Drug Abuse Treatment category ranked third by total Medicaid payments in Kentucky for 2024.
Between 2019 and 2024, Medicaid payments linked to this treatment category in Winchester grew by $4,690,910—an increase of 323.5%. Spending climbed more rapidly in specific years, with significant increases recorded for both 2020 and 2023.
Though payments spanned the city, most Medicaid dollars for Alcohol and Drug Abuse Treatment were concentrated in a few ZIP codes. In 2024, ZIP code 40391 reported the highest payments, totaling $6,141,111, with the top ZIP code accounting for all Medicaid outlays on Alcohol and Drug Abuse Treatment services in Winchester for the year.
Payments under the Alcohol and Drug Abuse Treatment category were additionally concentrated among select billing codes.
By comparison, from 2023 to 2024, Medicaid payments tied to the Alcohol and Drug Abuse Treatment category in Winchester rose 2.3%, whereas payments for all Medicaid service categories across the city changed by 12.4% over the same period.
According to the Centers for Medicare & Medicaid Services, joint federal and state Medicaid spending approached $871.7 billion for fiscal year 2023, making up about 18% of all national health expenditures; in 2019, the total was $613.5 billion, prior to the COVID-19 pandemic’s impact.
This nearly 40% rise in just a few years is largely attributed to expanded enrollment and greater utilization of services during and after the pandemic…
Federal budget legislation under the Trump administration in recent years has included major proposals to reduce federal spending and adjust Medicaid’s design. For instance, the “One Big Beautiful Bill Act,” signed into law in 2025, is projected to cut federal Medicaid funding by more than $1 trillion over the decade and establishes measures like work mandates and expanded cost-sharing. These policies could restrict access and coverage for some, shift more responsibility to states, and slow federal Medicaid funding growth, while the program continues to cover tens of millions nationwide.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $1,450,200 | 484.8% |
| 2021 | $1,754,046 | 21% |
| 2022 | $2,724,924 | 55.4% |
| 2023 | $6,003,107 | 120.3% |
| 2024 | $6,141,111 | 2.3% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | Evaluation and Management | $6,305,015 | 25.9% |
| 2 | Alcohol and Drug Abuse Treatment | $6,141,111 | 25.2% |
| 3 | National Codes Established for State Medicaid Agencies | $3,660,568 | 15% |
| 4 | Radiology Procedures | $3,139,366 | 12.9% |
| 5 | Medicine Services and Procedures | $2,444,120 | 1<0.1% |
| 6 | Pathology and Laboratory Procedures | $898,164 | 3.7% |
| 7 | Surgery | $737,540 | 3% |
| 8 | Dental Services | $285,317 | 1.2% |
| 9 | Drugs Administered Other than Oral Method | $209,416 | 0.9% |
| 10 | Procedures / Professional Services | $171,135 | 0.7% |
| 11 | Vision Services | $132,566 | 0.5% |
| 12 | Ambulance and Other Transport Services and Supplies | $105,683 | 0.4% |
| 13 | Temporary Codes | $94,068 | 0.4% |
| 14 | Administrative, Miscellaneous and Investigational | $20,541 | 0.1% |
| 15 | Outpatient PPS | $17,411 | 0.1% |
| 16 | Medical And Surgical Supplies | $4,912 | <0.1% |
| 17 | Orthotic Procedures and services | $3,812 | <0.1% |
| 18 | Temporary National Codes (Non-Medicare) | $2,891 | <0.1% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| H0011 | Alcohol and/or drug services | $3,382,923 | 25 |
| H2034 | A/d halfway house, per diem | $1,560,142 | 22 |
| H2015 | Comp comm supp svc, 15 min | $484,125 | 17 |
| H0038 | Self-help/peer svc per 15min | $337,107 | 45 |
| H2027 | Psychoed svc, per 15 min | $158,326 | 7 |
| H0040 | Assert comm tx pgm per diem | $88,511 | 6 |
| H2020 | Ther behav svc, per diem | $57,981 | 3 |
| H0015 | Alcohol and/or drug services | $26,329 | 2 |
| H0032 | Mh svc plan dev by non-md | $22,097 | 12 |
| H0020 | Alcohol and/or drug services | $13,908 | 4 |
| H2019 | Ther behav svc, per 15 min | $8,783 | 3 |
| H0002 | Alcohol and/or drug screenin | $874 | 1 |
Note: HCPCS codes are included for reference within the category. All category totals and hierarchy in this piece are based on standardized service groups, not individual codes.
Data in this report comes from the U.S. Department of Health and Human Services Medicaid Provider Spending database. Readers can access source information here.
