Hermosa Beach sees 95.8% increase in Medicaid Evaluation and Management payments in 2024

In Hermosa Beach, Medicaid providers billed $70,767 for services listed under the Evaluation and Management category during 2024, data from the U.S. Department of Health and Human Services Medicaid Provider Spending database show. This represents a 95.8% rise from 2023, when these providers submitted $36,146 in claims for these services.

Medicaid, a public health insurance initiative administered by states and funded through a partnership between federal and state governments, covers low-income families and individuals, children, seniors, and people with disabilities, making it a major segment of the nation’s health care structure.

Because taxpayer revenue funds Medicaid, changes in community billing highlight local public health spending patterns.

The Evaluation and Management category broadly describes Medicaid-associated services characterized by the nature of care, relying on standardized HCPCS and CPT code groupings. For this report, each billing code was sorted into one category using consistent code ranges to group related services, prevent duplicates, and accurately track trends over time.

Hermosa Beach’s Medicaid payments for Evaluation and Management topped all other categories in 2024.

Statewide, California listed Evaluation and Management as the second-ranked Medicaid payment stream by total dollars that year.

From 2019 through 2024, Medicaid payments attached to Evaluation and Management services rose by $6,406 in Hermosa Beach, or 8.3%. Some periods had higher-than-average gains, especially in 2020 and 2021.

Although these care expenditures spanned the city, most payments occurred within a handful of ZIP codes. During 2024, ZIP code 90254 saw Medicaid payments for Evaluation and Management services hit $70,766. This ZIP code alone made up 100% of Hermosa Beach’s Medicaid payments for this category that year.

Payments in this category were also highly concentrated among select individual billing codes.

To compare, between 2024 and 2023, Medicaid payments for Evaluation and Management in Hermosa Beach increased 95.8% versus a 118.7% change across all local Medicaid claim categories in the same timeframe.

Centers for Medicare & Medicaid Services reported that federal and state Medicaid expenditures reached roughly $871.7 billion in the 2023 fiscal year. That equated to about 18% of U.S. health spending and climbed sharply from approximately $613.5 billion in 2019, before the COVID-19 pandemic.

An increase of about 40% occurred over those years, predominantly fueled by expanded Medicaid roles and greater use of services linked to the pandemic and its aftermath.

Recent legislation from the Trump administration brought sweeping proposals to reduce federal Medicaid outlays and restructure the program. Provisions in the One Big Beautiful Bill Act, signed into law in 2025, include plans to cut federal Medicaid spending by over $1 trillion during the next decade. The law introduces requirements such as work provisions and increased cost-sharing, a combination that may decrease both eligibility and federal funds for some enrollees. These policies would increase fiscal responsibility for states and may slow future federal spending growth even as Medicaid continues to serve tens of millions nationwide.

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. Find the source data here.