Medicaid payments for COVID-19 services in Phelps reached $10,577 in 2024

At least $10,577 in Medicaid payments were made in Phelps during 2024 for services billed using HCPCS codes specifically linked to COVID-19, as reported in the U.S. Department of Health and Human Services Medicaid Provider Spending database. This marked a 62.1% rise compared to 2023, when providers in the area billed $6,524 for services under the same codes.

Medicaid is a state-administered public health insurance program funded by both federal and state governments. It provides coverage for individuals and families with low incomes, seniors, children, and those with disabilities, making it a significant part of the U.S. health system.

Because Medicaid funds are drawn from taxpayers, local trends in billing help illustrate how public health care resources are spent in a community.

For this report, COVID-19–related services were identified using HCPCS codes flagged or categorized as “COVID-19” or “coronavirus” in billing descriptions or reference sources. Therefore, these amounts reflect only those services directly marked as COVID-related, excluding pandemic care billed under broader or alternate codes.

Elsewhere in Kentucky, Louisville had the highest Medicaid spending for COVID-19 services in 2024, with $614,714 in virus-associated payments.

Data indicates Hilltop Primary Care, Inc was the sole provider submitting Medicaid claims for COVID-19–related services in Phelps during 2024.

During the pandemic, spending on COVID-19–specific Medicaid services accounted for a significant portion of Medicaid cost increases in Phelps.

Total Medicaid claims across other categories grew by $21,200 from 2020 to 2024, showing a 32.5% increase.

In the two years prior to the pandemic, Phelps saw average annual Medicaid payments of $63,100.

According to the Centers for Medicare & Medicaid Services, combined federal and state spending on Medicaid reached $871.7 billion in fiscal year 2023, making up about 18% of all U.S. health spending, compared with $613.5 billion in 2019 before the COVID-19 pandemic.

This roughly 40% increase in spending over several years was driven mainly by larger enrollment numbers and increased service use during and after the pandemic.

Recent federal budget laws enacted under the Trump administration have included major proposals aimed at lowering federal Medicaid funding and modifying the program. The “One Big Beautiful Bill Act,” enacted in 2025, is estimated to reduce federal Medicaid expenditure by over $1 trillion in the next decade and implements requirements such as work rules and greater cost-sharing, potentially impacting coverage and financial support for some enrollees. As a result, states are expected to shoulder more of the cost, restricting the expansion of federal support even while Medicaid continues to serve millions nationwide.

Note: Includes HCPCS codes explicitly labeled for COVID-19 services; totals do not represent all pandemic-related health care spending.

Information in this report was gathered from the U.S. Department of Health and Human Services Medicaid Provider Spending database. The original source data is available here.