Providers in Farmingdale billed $1,903,084 to Medicaid in 2024 for services categorized under Alcohol and Drug Abuse Treatment, the U.S. Department of Health and Human Services Medicaid Provider Spending database shows. This represented an increase of 5% from 2023, when $1,813,232 in claims were submitted for the same services.
Medicaid, administered by states with joint federal and state funding, insures low-income individuals and families, seniors, children, and people with disabilities. This makes it one of the nation’s largest healthcare programs.
Shifts in local Medicaid billing reflect how taxpayer-supported healthcare dollars are distributed across communities.
The Alcohol and Drug Abuse Treatment label includes a range of Medicaid-billed services identified by consistent HCPCS and CPT codes. Service categories in this analysis were assigned based on shared code prefixes and numeric ranges to track related services over time, avoid double counting, and maintain accurate category rankings.
While Medicaid spending grew in multiple categories, Alcohol and Drug Abuse Treatment received the highest total Medicaid payments in Farmingdale for 2024.
Statewide, this category also ranked first in Medicaid payments across New Jersey in 2024.
During the five years before 2024, Medicaid payments for Alcohol and Drug Abuse Treatment services in Farmingdale rose by $452,469, or 31.2%. These payments saw the fastest growth during select periods, notably 2020 and 2022.
Medicaid payments for this category were allocated citywide, but concentrated in a few ZIP codes. In 2024, ZIP code 07727 recorded $1,903,083 in payments, making up 100% of all funds tied to Alcohol and Drug Abuse Treatment services in Farmingdale that year.
Payments in this category were also concentrated in a small subset of Medicaid billing codes.
Between 2023 and 2024, Medicaid payments for Alcohol and Drug Abuse Treatment services in Farmingdale increased by 5%, compared to a citywide rise of 1% across all Medicaid claim categories.
According to the Centers for Medicare & Medicaid Services, total combined state and federal Medicaid expenditures reached about $871.7 billion in fiscal year 2023, making up roughly 18% of total U.S. health spending, up from $613.5 billion during 2019, prior to the COVID-19 pandemic.
This growth of about 40% occurred over several years, largely due to enrollment increases and heightened utilization during and after the pandemic years.
Federal budget laws enacted under the Trump administration have included significant measures to reduce federal Medicaid funding and alter its structure. For instance, the “One Big Beautiful Bill Act,” signed in 2025, is expected to decrease federal Medicaid funding by more than $1 trillion over the coming decade and implement work requirements and increased cost-sharing, potentially affecting coverage and funding for some recipients. These policies are anticipated to require states to cover a greater share of costs, restraining federal Medicaid growth even as millions remain enrolled in the program.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $1,450,615 | 119.9% |
| 2021 | $1,297,444 | -10.6% |
| 2022 | $1,548,492 | 19.3% |
| 2023 | $1,813,231 | 17.1% |
| 2024 | $1,903,083 | 5% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | Alcohol and Drug Abuse Treatment | $1,903,083 | 92.6% |
| 2 | Durable Medical Equipment | $140,248 | 6.8% |
| 3 | Medical And Surgical Supplies | $11,076 | 0.5% |
| 4 | Evaluation and Management | $1,389 | 0.1% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| H2016 | Comp comm supp svc, per diem | $1,903,083 | 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.
