Providers in Rochester Hills submitted $2,236,666 in Medicaid claims for services identified under the Alcohol and Drug Abuse Treatment category in 2024, based on data from the U.S. Department of Health and Human Services Medicaid Provider Spending database. This amount reflects a 63.3% rise compared with 2023, when providers billed $1,369,756 for the same services.
Medicaid is a state-run public health insurance program funded jointly by federal and state governments. It provides coverage for low-income people and families, seniors, children and individuals with disabilities, making it one of the largest segments of the U.S. health care system.
Because Medicaid is funded by taxpayers, changes in local billing patterns reflect shifts in how public health care dollars are spent within a community.
The “Alcohol and Drug Abuse Treatment” designation covers a collection of Medicaid-billed services that are categorized by care type, as defined by standardized HCPCS and CPT code groupings. For this report, each billing code was mapped to a single service category using set code prefixes and numerical ranges, which allowed related services to be reviewed in aggregate while avoiding duplicate counts and maintaining consistent rankings over time.
Medicaid spending grew across several service categories, but Alcohol and Drug Abuse Treatment represented the third-largest category by total payments in Rochester Hills for 2024.
Statewide in Michigan, the Alcohol and Drug Abuse Treatment category topped the list by total Medicaid payment volume in 2024.
During the five years prior to 2024, Medicaid payments associated with Alcohol and Drug Abuse Treatment in Rochester Hills increased by $742,873, or 49.7%. Growth in spending accelerated at different times, with significant year-to-year jumps in 2023 and 2020.
Within Rochester Hills, spending on Alcohol and Drug Abuse Treatment was spread throughout the city but remained concentrated in just a handful of ZIP codes. For 2024, the 48309 ZIP code accounted for $1,260,941 while 48306 reached $975,724. Combined, these top 2 ZIP codes represented the entirety of Medicaid payments under this category in Rochester Hills for the year.
Medicaid payments in Alcohol and Drug Abuse Treatment were also centered among a relatively small group of individual billing codes.
To compare, Medicaid payments for Alcohol and Drug Abuse Treatment in Rochester Hills grew 63.3% between 2024 and 2023, while all Medicaid claim categories citywide experienced a 2% rise over the same time period.
According to the Centers for Medicare & Medicaid Services, combined federal and state Medicaid expenditures totaled approximately $871.7 billion in fiscal 2023, accounting for nearly 18% of all national health spending, up sharply from about $613.5 billion in 2019 before the COVID-19 pandemic.
The growth amounts to roughly 40% over several years, primarily due to increased enrollment and higher use of services during and after the pandemic.
Recent federal budget legislation under the Trump administration featured several major proposals to curtail federal Medicaid funding and reorganize the program. The “One Big Beautiful Bill Act,” enacted in 2025, is slated to reduce federal Medicaid spending by more than $1 trillion over 10 years and adds policies such as work requirements and greater cost-sharing, potentially reducing coverage and support for certain beneficiaries. These adjustments are anticipated to transfer more Medicaid costs to the states and restrict the federal share of funding growth even as the program serves tens of millions of Americans.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $1,493,793 | 2.7% |
| 2021 | $1,140,593 | -23.6% |
| 2022 | $1,020,121 | -10.6% |
| 2023 | $1,369,756 | 34.3% |
| 2024 | $2,236,665 | 63.3% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | Evaluation and Management | $4,227,744 | 29.5% |
| 2 | Durable Medical Equipment | $3,419,477 | 23.9% |
| 3 | Alcohol and Drug Abuse Treatment | $2,236,665 | 15.6% |
| 4 | Medical And Surgical Supplies | $1,611,248 | 11.3% |
| 5 | Medicine Services and Procedures | $1,386,481 | 9.7% |
| 6 | Surgery | $322,150 | 2.3% |
| 7 | Orthotic Procedures and services | $264,015 | 1.8% |
| 8 | Temporary National Codes (Non-Medicare) | $203,999 | 1.4% |
| 9 | Dental Services | $173,589 | 1.2% |
| 10 | Ambulance and Other Transport Services and Supplies | $163,908 | 1.1% |
| 11 | Pathology and Laboratory Procedures | $146,531 | 1% |
| 12 | National Codes Established for State Medicaid Agencies | $100,993 | 0.7% |
| 13 | Procedures / Professional Services | $21,295 | 0.1% |
| 14 | Radiology Procedures | $15,849 | 0.1% |
| 15 | Temporary Codes | $10,283 | 0.1% |
| 16 | Anesthesia | $3,324 | <0.1% |
| 17 | Prosthetic Procedures | $520 | <0.1% |
| 18 | Drugs Administered Other than Oral Method | $305 | <0.1% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| H2015 | Comp comm supp svc, 15 min | $1,260,941 | 12 |
| H2014 | Skills train and dev, 15 min | $839,140 | 11 |
| H2025 | Supp maint employ, 15 min | $136,584 | 11 |
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.
