Sterling’s Medicaid providers billed $2,831,128 for Alcohol and Drug Abuse Treatment services in 2024, based on information from the U.S. Department of Health and Human Services Medicaid Provider Spending database. This represents a 178% jump from 2023, when $1,018,374 in claims were recorded for the same category of care.
Medicaid, a state-operated program with joint federal and state funding, provides insurance for low-income people, seniors, children, and those with disabilities. It stands as one of the largest sectors within the U.S. health system. More details can be found at this explainer.
Because Medicaid is funded by taxpayers, fluctuations in local billing amounts highlight how public health dollars are distributed locally.
The “Alcohol and Drug Abuse Treatment” service group reflects Medicaid-billed treatments categorized by specific service codes (through the use of standardized HCPCS and CPT groupings). For this analysis, each billing code was grouped into a single service type using unified code prefixes and ranges, which enables consistent examination while preventing double counting and allowing for accurate comparisons over time.
Alcohol and Drug Abuse Treatment became Sterling’s third highest category for Medicaid payments in 2024, even as spending increased across multiple service areas.
At the state level, this category ranked second in Virginia for total Medicaid payments for the year.
Medicaid payments for this category in Sterling climbed by $2,236,625, or 376.2%, over the five years through 2024. Some years, such as 2022 and 2021, saw particularly significant growth year-over-year.
While citywide spending on Alcohol and Drug Abuse Treatment was distributed throughout Sterling, most payments were focused within a few ZIP codes. In 2024, ZIP code 20166 accounted for $2,268,008, and 20165 for $563,119. These two ZIP codes made up 100% of the city’s Medicaid spending in this category for the year.
A limited set of billing codes received a majority of Medicaid payments within the Alcohol and Drug Abuse Treatment category.
In Sterling, Medicaid spending on this category increased 178% from 2023 to 2024, outpacing the 38.4% increase seen across all local Medicaid claim categories over the same timeframe.
Centers for Medicare & Medicaid Services data shows that combined federal and state Medicaid spending reached approximately $871.7 billion in fiscal year 2023, comprising about 18% of total national health spending, a notable rise from roughly $613.5 billion in 2019, prior to the COVID-19 pandemic.
This four-year growth rate of roughly 40% was largely driven by increased enrollment and greater use of healthcare during and after the pandemic.
Recent federal budget actions under the Trump administration proposed significant reductions in federal Medicaid spending and changes to program structure. The “One Big Beautiful Bill Act,” signed in 2025, is expected to cut federal Medicaid funding by more than $1 trillion over 10 years, adds work requirements and increased cost sharing, and could lead to reduced coverage and funding for certain groups. These changes would shift greater financial responsibility to states and could limit the expansion of federal Medicaid support, even as millions depend on the program.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $594,503 | – |
| 2021 | $750,247 | 26.2% |
| 2022 | $1,193,663 | 59.1% |
| 2023 | $1,018,373 | -14.7% |
| 2024 | $2,831,128 | 178% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | National Codes Established for State Medicaid Agencies | $30,325,166 | 77.1% |
| 2 | Temporary National Codes (Non-Medicare) | $4,166,834 | 10.6% |
| 3 | Alcohol and Drug Abuse Treatment | $2,831,128 | 7.2% |
| 4 | Medicine Services and Procedures | $1,101,818 | 2.8% |
| 5 | Evaluation and Management | $763,453 | 1.9% |
| 6 | Pathology and Laboratory Procedures | $126,944 | 0.3% |
| 7 | Vision Services | $10,776 | <0.1% |
| 8 | Ambulance and Other Transport Services and Supplies | $9,822 | <0.1% |
| 9 | Radiology Procedures | $4,251 | <0.1% |
| 10 | Procedures / Professional Services | $2,935 | <0.1% |
| 11 | Surgery | $18 | <0.1% |
| 12 | Dental Services | $0 | <0.1% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| H2014 | Skills train and dev, 15 min | $2,268,008 | 12 |
| H0046 | Mental health service, nos | $563,119 | 12 |
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.
