Alcohol and drug abuse treatment Medicaid payments in Berkley surge to $2,709,395 in 2024

In 2024, providers in Berkley billed $2,709,395 to Medicaid for services within the Alcohol and Drug Abuse Treatment classification, according to figures from the U.S. Department of Health and Human Services Medicaid Provider Spending database. This represented a 261.5% rise compared with 2023, when $749,512 was claimed for similar services.

Medicaid, jointly funded by federal and state governments and administered by states, supports low-income individuals, seniors, children, and people with disabilities, placing it among the nation’s largest health insurance programs, as explained by the Commonwealth Fund.

As Medicaid funds are taxpayer-sourced, shifts in local billing volumes reveal changes in how health care money is distributed within a community.

The Alcohol and Drug Abuse Treatment category includes Medicaid-billed services grouped by type of care using standard HCPCS and CPT code families. Each billing code in this analysis was evaluated and placed in a single service category, organized by code prefixes and specific numeric intervals to prevent double counting while maintaining comparable rankings over time.

Spending as billed to Medicaid rose in several service segments, but the Alcohol and Drug Abuse Treatment group generated the highest total in Berkley in 2024.

Across Michigan, Alcohol and Drug Abuse Treatment services also topped all Medicaid payment categories in 2024.

From five years prior to 2024, Medicaid disbursements attributable to the Alcohol and Drug Abuse Treatment category in Berkley grew by $2,324,880, an increase of 604.6%. This overall growth included pronounced year-over-year jumps, particularly in 2020 and 2023.

Spending for Alcohol and Drug Abuse Treatment spanned multiple areas of the city, but payments were focused within a handful of ZIP codes. In 2024, ZIP code 48072 accounted for $2,709,394 in Medicaid payments for this category. The leading ZIP code represented 100% of Medicaid payments tied to Alcohol and Drug Abuse Treatment in Berkley that year.

Within this spending category, the majority of Medicaid payments were linked to a select number of specific billing codes.

Comparatively, in Berkley, Medicaid payments associated with Alcohol and Drug Abuse Treatment increased 261.5% from 2023 to 2024, versus a 77.4% shift across all Medicaid claim types during the same time frame.

According to the Centers for Medicare & Medicaid Services, state and federal Medicaid spending together reached approximately $871.7 billion in fiscal year 2023, making up around 18% of total U.S. health care spending—a substantial increase from about $613.5 billion in 2019, prior to the COVID-19 pandemic.

This increase amounts to about 40% in several years, much of it fueled by wider program enrollment and greater use of services during and following the pandemic.

Recent federal legislative measures under the Trump administration have brought major proposals to trim Medicaid funding and change its framework. The “One Big Beautiful Bill Act,” enacted in 2025, is forecasted to cut over $1 trillion from federal Medicaid disbursements over the next decade, alongside policies such as new work requirements and expanded patient cost-sharing, which could shrink coverage and funding for select beneficiaries. These moves are expected to pass on greater costs to states and place constraints on federal growth, even as Medicaid supports tens of millions across the country.

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.