Medicaid spending for medicine services and procedures in Sherman rises to $9.9 million in 2024

In 2024, Medicaid providers in Sherman billed $9,928,365 for services within the Medicine Services and Procedures category, as reported in the U.S. Department of Health and Human Services Medicaid Provider Spending database. This represented a 20% jump over 2023, when claims for these services totaled $8,275,464.

Medicaid is a public health insurance initiative overseen by states and jointly funded by federal and state governments. It supports low-income groups, older adults, children, and people with disabilities, and constitutes one of the nation’s largest health care programs.

Because Medicaid funding is sourced from taxpayers, fluctuations in local billing reflect how community health care spending is allocated.

The “Medicine Services and Procedures” grouping includes Medicaid-covered services identified by care type, using standardized HCPCS and CPT code sets. For this analysis, billing codes were mapped to a single service group based on specific code ranges and prefixes, which enabled the comparison of similar services without double counting and preserved historical payment accuracy.

Medicaid expenditures rose in several service groupings overall, with Medicine Services and Procedures ranking third in Sherman for total Medicaid spending in 2024.

Across Texas, the Medicine Services and Procedures group held the fifth spot statewide for total Medicaid payouts in 2024.

Between 2019 and 2024, Sherman saw Medicaid payments for Medicine Services and Procedures grow by $8,882,436, or 849.2%. Spending increases were particularly high in 2020 and 2021 during certain reporting periods.

While these costs were spread across the city, most payments for Medicine Services and Procedures were tied to a few ZIP codes. In 2024, ZIP codes 75090 and 75092 accounted for all Medicaid payments in this category, with $9,537,941 and $390,423, respectively. These two areas represented 100% of related Medicaid spending for the year.

Within this category, the majority of Medicaid payments were linked to a small number of distinct billing codes.

In comparison, Sherman experienced a 20% increase in Medicaid payments for Medicine Services and Procedures from 2023 to 2024, whereas all Medicaid claim categories collectively saw an 8.2% rise during the same frame.

According to the Centers for Medicare & Medicaid Services, combined state and federal Medicaid outlays reached around $871.7 billion in fiscal year 2023—roughly 18% of the total national health expenditure—up from about $613.5 billion in 2019, before the COVID-19 crisis.

This represents about 40% overall growth, driven primarily by higher enrollment and increased use of services around and after the pandemic.

Recent federal budget measures under the Trump administration have featured proposals to slash federal Medicaid support and modify how the program operates. The “One Big Beautiful Bill Act,” enacted in 2025, is anticipated to cut over $1 trillion in federal Medicaid funding over 10 years and adds provisions such as work requirements and increased cost-sharing, potentially shrinking both coverage and federal support for certain recipients. The result is expected to be greater financial responsibility for states and limited future growth of federal funding, despite ongoing high enrollment.

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.