Alcohol and drug abuse treatment Medicaid spending in Garden Grove hits $5.5 million in 2024

In 2024, Garden Grove Medicaid providers billed $5,537,982 for services in the Alcohol and Drug Abuse Treatment category, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. This amount represents a 122.3% rise from 2023, when claims for this category totaled $2,491,395.

Medicaid is operated by the states and jointly financed by both state and federal governments. The program provides health insurance for low-income people, seniors, children, and those with disabilities, positioning it as one of the principal components of the U.S. health care landscape. Learn more about Medicaid’s funding here.

Because Medicaid receives tax funding, changes in area billing reflect how a community’s public health dollars are distributed.

The Alcohol and Drug Abuse Treatment category includes a set of Medicaid-billed services determined by the type of care provided and identified according to standardized HCPCS and CPT code groupings. For this report, each billing code falls under one specific service category by consistent code prefixes and numeric ranges. This approach enables a group analysis of similar services, while preventing double reporting and ensuring accuracy in year-over-year rankings.

While Medicaid spending rose in several service groups, Alcohol and Drug Abuse Treatment ranked as the fifth-highest category by Medicaid payments in Garden Grove for 2024.

Statewide in California, Alcohol and Drug Abuse Treatment placed fourth among all service categories for total Medicaid payments in 2024.

From 2019 through 2024, Medicaid spending linked to the Alcohol and Drug Abuse Treatment category in Garden Grove grew by $3,255,148, an increase of 37%. Certain periods saw sharply accelerating growth, with especially strong increases in both 2023 and 2022.

A review of 2024 data shows spending concentrated in a few ZIP codes: 92840 led with $2,658,581, followed by 92845 at $2,640,816 and 92841 with $118,985. These top three ZIP codes together accounted for 97.8% of all Medicaid payments assigned to Alcohol and Drug Abuse Treatment services in Garden Grove for the year.

Medicaid payments within the Alcohol and Drug Abuse Treatment group were also consolidated among only a handful of billing codes.

In comparison, Medicaid payments tied to Alcohol and Drug Abuse Treatment services in Garden Grove surged 122.3% from 2023 to 2024. For the city overall, all Medicaid claim categories saw a 6% shift during the same year.

The Centers for Medicare & Medicaid Services reported that combined federal and state Medicaid expenses totaled roughly $871.7 billion in the 2023 fiscal year, or about 18% of nationwide health expenditures. This figure compares to about $613.5 billion in 2019, ahead of the COVID-19 pandemic.

This shift amounts to approximately 40% growth over a few years, mainly fueled by greater enrollment and utilization during and following the pandemic.

Recent federal budget rules under the Trump administration have brought major proposals to curtail federal Medicaid funding and restructure the program. For instance, the “One Big Beautiful Bill Act,” enacted in 2025, is expected to reduce federal Medicaid allocation by more than $1 trillion over 10 years, also establishing new requirements such as mandatory work rules and higher cost-sharing. These policy changes may decrease coverage and federal contributions for some recipients, transferring greater responsibility to states and putting limits on federal funding growth even as Medicaid supports 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. The source data can be found here.