Rapid City received $7,826 in Medicaid payments for COVID-19 services in 2024

Data from the U.S. Department of Health and Human Services Medicaid Provider Spending database shows Medicaid payments in Rapid City amounted to at least $7,826 in 2024 for services billed under HCPCS codes specifically related to COVID-19.

Medicaid, a public insurance program managed by states and jointly funded by the federal and state governments, provides coverage for low-income people, families, seniors, children and those with disabilities and is one of the main components of the nation’s health care system. More information about funding can be found at this explainer by the Commonwealth Fund.

Because the funding for Medicaid payments comes from taxpayers, shifts in local billing data give insight into the community allocation of public health care spending.

This report identified services related to COVID-19 based on description or reference data containing the “COVID-19” or “coronavirus” label. As such, reported figures reflect only those claims billed using codes explicitly designated for COVID-19 and may not capture all pandemic-related care billed under broader codes.

In comparison, Sioux Falls registered the highest Medicaid payment total for COVID-19 services statewide in 2024, reaching $74,324 in virus-specific claims.

In Rapid City, six different providers filed Medicaid claims using COVID-19–related HCPCS codes during 2024. COVID Specific was the most frequently billed code, totaling $6,395.

On average, Medicaid payments per provider for COVID-19–linked services in Rapid City were $1,304, falling below the statewide average payment of $5,779.

During the years spanning the pandemic, spending classified under COVID-19–specific Medicaid services was a significant factor in overall program growth in Rapid City.

Across all claim categories other than COVID-19–specific services, total Medicaid payments increased by $66,365,798 from 2020 through 2024, a jump of 218%.

According to the Centers for Medicare & Medicaid Services, combined federal and state Medicaid spending reached approximately $871.7 billion in fiscal 2023—around 18% of the entire U.S. health care spend—up from $613.5 billion in 2019 before the outbreak of COVID-19.

That increase reflects about 40% growth over several years, mostly attributable to both expanded enrollment and higher usage connected to and following the pandemic.

Federal budget measures enacted under the Trump administration have proposed major changes for Medicaid, including significant reductions in federal funding and overhaul of the program’s structure. The “One Big Beautiful Bill Act,” passed in 2025, is projected to trim more than $1 trillion from federal Medicaid spending over the next 10 years and adds new requirements such as work mandates and higher cost-sharing. These policies could reduce Medicaid coverage for some people and shift a greater share of the cost burden to states even as the program supports tens of millions of individuals across the country.

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

The information presented here comes from the U.S. Department of Health and Human Services Medicaid Provider Spending database. Access the source data here.