South Dakota Medicaid spends $5.7 million on drugs given by nonoral methods in 2024

South Dakota Medicaid expenditures reached $5,692,544 in 2024 for services within the Drugs Administered Other than Oral Method category, as reported in the U.S. Department of Health and Human Services Medicaid Provider Spending database. This represented a 17.7% rise from 2023, when providers submitted $4,837,775 in claims.

Medicaid is administered by the states and receives federal and state funding, allowing low-income individuals and families, children, seniors, and those with disabilities to access health coverage. It is one of the largest components of the American health care system.

Medicaid spending reflects allocation of taxpayer funds within a community, as shifts in local billing indicate how public health care money is distributed.

The “Drugs Administered Other than Oral Method” category includes a defined set of services classified by care type, relying on standard HCPCS and CPT code groupings. The analysis assigned each billing code to a single category using consistent prefixes and number ranges, grouping similar services while maintaining ranking accuracy and avoiding duplication.

Some categories may include multiple types of services, with this group covering related care frequently billed together, such as diagnostic testing, office visits and therapeutic procedures within Medicaid.

Over the five years leading up to 2024, state Medicaid payments for the Drugs Administered Other than Oral Method category increased by $3,952,413—up 227.1%. Certain periods, such as 2021 and 2023, saw notable acceleration in year-over-year expenditure growth.

While this spending type was found across the state, payments were mainly focused in few ZIP codes. In 2024, the leading areas by Medicaid payments included ZIP Code 57105 at $3,597,551 (63.2% of the state total), ZIP Code 57701 with $567,436 (10%), and ZIP Code 57401 at $354,953 (6.2%).

Combined, these top three ZIP codes represented 79.4% of South Dakota’s Medicaid payments in this service category for the year.

In comparison, the growth in Medicaid payments statewide across all service categories was 17.4% from 2023 to 2024.

The Drugs Administered Other than Oral Method group ranked among the top nine Medicaid service categories in South Dakota by total payments in 2024, although spending rose across many service groups.

Data from the Centers for Medicare & Medicaid Services show that combined state and federal Medicaid spending reached about $871.7 billion for fiscal year 2023. This equaled about 18% of total national health spending, a significant increase from $613.5 billion in 2019, prior to the COVID-19 pandemic.

This represents a jump of about 40% within a few years, mainly from expanded Medicaid enrollment and greater service use during and following the public health emergency.

Recently enacted federal budget measures during the Trump administration included major proposals to trim Medicaid funding and alter the program. The “One Big Beautiful Bill Act,” signed into law in 2025, is projected to reduce federal Medicaid spending by more than $1 trillion over 10 years and introduces cost-sharing increases and work requirements, potentially reducing coverage and federal allotments for some individuals. As a result, state governments may absorb more costs even as Medicaid serves tens of millions nationwide.