In 2024, Medicaid providers in Katy submitted $39,067,952 in claims for services covered under the National Codes Established for State Medicaid Agencies, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. This figure marked a 32.4% increase compared with 2023, when claims for the same service type totaled $29,516,074.
Medicaid is a publicly funded health insurance initiative administered by the states and financed through a partnership between federal and state governments. It serves low-income individuals and families, seniors, children, and those with disabilities, making it one of the largest segments of the U.S. health care system.
Because taxpayer dollars fund Medicaid payments, shifts in local billing levels illustrate how community public health resources are directed.
The “National Codes Established for State Medicaid Agencies” classification covers a set of Medicaid-billed services that are defined by the care provided, based on established HCPCS and CPT code sets. In this analysis, each billing code was mapped to a specific service group using standardized code prefixes and ranges, which allowed these services to be analyzed together while eliminating redundancies and maintaining ranking accuracy across years.
Despite overall increases in Medicaid expenditures across various service types, National Codes Established for State Medicaid Agencies accounted for Katy’s largest Medicaid payment category in 2024.
Statewide in Texas, National Codes Established for State Medicaid Agencies took the second spot by total Medicaid payment amount in 2024.
From 2019 up to 2024, Medicaid payments for the National Codes Established for State Medicaid Agencies category in Katy went up by $32,116,355, reflecting a 462% rise. Periods of accelerated growth were seen, with substantial yearly increases reported in both 2021 and 2020.
Although payments for care in this category were spread across Katy, most funds were concentrated in a select number of ZIP codes. In 2024, ZIP code 77449 led with $23,457,472 in Medicaid payments, followed by 77450 at $9,448,116, and 77494 at $5,750,432. Combined, these 3 ZIP codes represented 98.9% of all categorized Medicaid payments in the city during the year.
Payments within the National Codes Established for State Medicaid Agencies category were also heavily concentrated among a handful of individual billing codes.
When comparing the National Codes Established for State Medicaid Agencies payments between 2024 and 2023, Katy saw a 32.4% rise. In contrast, the total for all Medicaid claim categories in the city increased 10.5% for the same period.
According to the Centers for Medicare & Medicaid Services, the combined federal and state Medicaid spend was about $871.7 billion in fiscal 2023, making up nearly 18% of national health spending, a sharp increase from roughly $613.5 billion in 2019, prior to the COVID-19 pandemic.
This growth of about 40% in only a few years has been propelled primarily by higher enrollment and increased service utilization during and after the pandemic.
Recent Trump-era federal budget laws included significant measures to lower federal Medicaid funding and change the program’s structure. The “One Big Beautiful Bill Act,” signed into law in 2025, is set to trim more than $1 trillion from federal Medicaid funding in the next ten years, introducing work requirements and greater cost-sharing—steps that could reduce access and funding for some. As a result, states are expected to face increased costs, with growth in federal Medicaid support expected to slow, despite the program serving tens of millions across the country.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $6,951,596 | 62.3% |
| 2021 | $19,894,857 | 186.2% |
| 2022 | $23,565,832 | 18.5% |
| 2023 | $29,516,074 | 25.2% |
| 2024 | $39,067,952 | 32.4% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | National Codes Established for State Medicaid Agencies | $39,067,952 | 54.9% |
| 2 | Temporary National Codes (Non-Medicare) | $13,623,848 | 19.1% |
| 3 | Medicine Services and Procedures | $6,162,387 | 8.7% |
| 4 | Alcohol and Drug Abuse Treatment | $4,899,493 | 6.9% |
| 5 | Evaluation and Management | $3,543,231 | 5% |
| 6 | Dental Services | $1,451,826 | 2% |
| 7 | Procedures / Professional Services | $1,043,461 | 1.5% |
| 8 | Ambulance and Other Transport Services and Supplies | $659,033 | 0.9% |
| 9 | Medical And Surgical Supplies | $235,516 | 0.3% |
| 10 | Pathology and Laboratory Procedures | $186,127 | 0.3% |
| 11 | Vision Services | $153,655 | 0.2% |
| 12 | Radiology Procedures | $86,155 | 0.1% |
| 13 | Surgery | $51,359 | 0.1% |
| 14 | Durable Medical Equipment | $9,885 | <0.1% |
| 15 | Drugs Administered Other than Oral Method | $4,071 | <0.1% |
| 16 | Temporary Codes | $1,006 | <0.1% |
| 17 | Coronavirus Diagnostic Panel | $0 | <0.1% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| T1000 | Private duty/independent nsg | $27,715,405 | 63 |
| T1019 | Personal care ser per 15 min | $3,192,960 | 31 |
| T2026 | Special childcare waiver/d | $2,860,020 | 24 |
| T1015 | Clinic service | $1,596,296 | 84 |
| T1013 | Sign lang/oral interpreter | $1,416,385 | 12 |
| T1005 | Respite care service 15 min | $1,357,702 | 32 |
| T2003 | N-et; encounter/trip | $184,238 | 5 |
| T1027 | Family training & counseling | $179,912 | 12 |
| T2016 | Habil res waiver per diem | $172,452 | 6 |
| T2031 | Assist living waiver/diem | $166,130 | 10 |
| T2022 | Case management, per month | $108,389 | 23 |
| T1017 | Targeted case management | $70,750 | 13 |
| T1002 | Rn services up to 15 minutes | $18,328 | 6 |
| T2040 | Financial mgt waiver/15min | $17,828 | 8 |
| T1502 | Medication admin visit | $8,626 | 3 |
| T1003 | Lpn/lvn services up to 15min | $2,523 | 2 |
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.
