Medicaid spending for alcohol and drug abuse treatment up 0.8% in Redondo Beach in 2024

Providers in Redondo Beach billed Medicaid $5,069,247 for Alcohol and Drug Abuse Treatment services in 2024, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. This amount reflects a 0.8% rise from 2023, when $5,027,009 was billed for these services.

Medicaid, a public health insurance program managed by states and jointly financed by federal and state governments, serves low-income individuals and families, seniors, children, and people with disabilities. It stands among the largest U.S. health care system programs.

Because Medicaid funding is sourced from taxpayers, variations in local billing reflect the allocation of public health care resources at the community level.

The Alcohol and Drug Abuse Treatment category includes Medicaid-billed services grouped by the nature of care delivered, determined by standardized HCPCS and CPT code sets. Each code was assigned to one service category using systematic code prefixes and numeric ranges for this analysis, enabling the consistent review of related services and preventing double counting or skewed rankings over time.

Medicaid spending increased for several categories, with Alcohol and Drug Abuse Treatment representing the top-ranked Medicaid payment category in Redondo Beach for 2024.

Statewide, Alcohol and Drug Abuse Treatment ranked as the fourth-largest Medicaid payment category in California in 2024.

Between 2019 and 2024, Redondo Beach recorded a $181,095, or 3.7%, increase in Medicaid spending tied to Alcohol and Drug Abuse Treatment. Certain periods saw more rapid growth, with noticeable increases occurring year over year, particularly in 2023 and 2022.

Although services in the Alcohol and Drug Abuse Treatment category were offered citywide, payment totals centered around a limited number of ZIP codes. In 2024, ZIP code 90277 saw payments of $3,509,481 and 90278 recorded $1,559,765, together representing the full amount of category payments in Redondo Beach for that year.

Payment distribution within Alcohol and Drug Abuse Treatment was further concentrated among a small group of billing codes.

For context, while the Alcohol and Drug Abuse Treatment category saw Redondo Beach Medicaid payments rise 0.8% between 2024 and 2023, the aggregate growth across all claim categories citywide was 9.5% during this same period.

According to the Centers for Medicare & Medicaid Services, combined federal and state Medicaid spending reached about $871.7 billion during fiscal year 2023, about 18% of all national health expenditures, an increase from approximately $613.5 billion in 2019, the year before the COVID-19 pandemic.

This jump marks close to 40% growth within a few years, fueled mainly by higher enrollment and service utilization amid and following the pandemic period.

Recent federal budget changes under the Trump administration brought forward major proposals to reduce federal Medicaid funding and alter the program’s structure. The “One Big Beautiful Bill Act,” which became law in 2025, is expected to cut federal Medicaid funding by over $1 trillion in the next decade, introducing policies such as work requirements and more cost-sharing. These measures could restrict coverage and reduce funding for certain beneficiaries, shifting greater responsibility and cost to states as federal support slows, even though Medicaid continues to cover millions.

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.