Medicaid payments for alcohol, drug abuse treatment in Ontario climb to $12.4 million in 2024

Dr. Mehmet Oz CMS Administrator
Dr. Mehmet Oz CMS Administrator
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In 2024, Medicaid providers in Ontario reported $12,379,622 in billing for Alcohol and Drug Abuse Treatment services, as detailed in the U.S. Department of Health and Human Services Medicaid Provider Spending database. This represented a 24.6% increase over the prior year, when $9,935,488 was billed for these services.

Medicaid, funded through a partnership between state and federal governments, serves numerous groups, including low-income individuals, seniors, children, and those with disabilities, making it a key component of the U.S. health system.

Fluctuations in Medicaid payment levels reflect how local public health dollars are spent, as the funds ultimately originate from taxpayers.

The “Alcohol and Drug Abuse Treatment” classification consolidates Medicaid claims that share standardized HCPCS and CPT code groupings based on service type. This reporting method assigns each billing code to just one service group, ensuring accurate year-over-year comparisons and avoiding double counting.

While multiple Medicaid service categories recorded elevated spending, Alcohol and Drug Abuse Treatment was the second-highest by payment volume for Ontario in 2024.

Statewide, in California, Alcohol and Drug Abuse Treatment held the fourth position among Medicaid service categories by payments in 2024.

Over the five years preceding 2024, Ontario’s Medicaid spending linked to Alcohol and Drug Abuse Treatment grew by $6,023,203, or 94.8%. Spending rose most rapidly during select periods, with particularly strong increases noted in 2022 and 2023.

Although services in this category were billed across Ontario, most Medicaid payments came from just a few ZIP codes. In 2024, ZIP code 91764 led with $7,390,995, followed by 91761 at $4,183,660, and 91762 with $804,966. These top 3 ZIP codes comprised 100% of Ontario’s Medicaid payments for this treatment category over the year.

Just a handful of billing codes made up most Medicaid payments within the Alcohol and Drug Abuse Treatment group.

Compared with all Medicaid claim categories in Ontario, Alcohol and Drug Abuse Treatment payments rose 24.6% from 2023 to 2024, while overall citywide Medicaid claims increased 21.2% during the same period.

According to the Centers for Medicare & Medicaid Services, federal and state Medicaid expenses totaled approximately $871.7 billion in fiscal year 2023—about 18% of all U.S. health care spending, and a sharp rise from the roughly $613.5 billion recorded in 2019, before the COVID-19 pandemic.

This change marks nearly a 40% jump over a few years, influenced in large part by more enrollees and higher demand for health care services following the onset of the pandemic.

Major federal budget laws under the Trump administration included changes to Medicaid funding and structure. For instance, the “One Big Beautiful Bill Act,” enacted in 2025, will potentially reduce more than $1 trillion in federal Medicaid expenditures over the next decade, while introducing work requirements and higher cost-sharing that could impact coverage for some. As a result, states will likely shoulder more costs and face restrictions on federal Medicaid funding, even as the program remains critical for tens of millions of Americans.

Medicaid Payments Tied to Alcohol and Drug Abuse Treatment in Ontario, California Over Five Years

Year Total Medicaid Payments % Change From Previous Year
2020 $6,356,418 -16.6%
2021 $5,319,135 -16.3%
2022 $7,782,488 46.3%
2023 $9,935,488 27.7%
2024 $12,379,622 24.6%
Top Categories by Medicaid Payments in Ontario, California, 2024

Rank Category Medicaid Payments Share of City Total
1 Medicine Services and Procedures $13,999,104 25.7%
2 Alcohol and Drug Abuse Treatment $12,379,622 22.8%
3 Procedures / Professional Services $9,177,472 16.9%
4 National Codes Established for State Medicaid Agencies $4,527,133 8.3%
5 Dental Services $4,016,108 7.4%
6 Temporary National Codes (Non-Medicare) $3,127,428 5.7%
7 Evaluation and Management $2,202,908 4%
8 Radiology Procedures $1,871,748 3.4%
9 Anesthesia $1,383,472 2.5%
10 Surgery $608,010 1.1%
11 Pathology and Laboratory Procedures $586,785 1.1%
12 Ambulance and Other Transport Services and Supplies $389,756 0.7%
13 Temporary Codes $44,334 0.1%
14 Medical And Surgical Supplies $30,476 0.1%
15 Vision Services $17,906 <0.1%
16 Orthotic Procedures and services $14,906 <0.1%
17 Drugs Administered Other than Oral Method $11,970 <0.1%
18 Administrative, Miscellaneous and Investigational $7,481 <0.1%
19 Pathology and Laboratory Services $77 <0.1%
Top 20 HCPCS Codes Within the Alcohol and Drug Abuse Treatment Category in Ontario, California, 2024

HCPCS Code Description Medicaid Payments Claims
H0032 Mh svc plan dev by non-md $10,061,712 260
H2019 Ther behav svc, per 15 min $1,628,964 46
H2014 Skills train and dev, 15 min $336,151 30
H0031 Mh health assess by non-md $111,739 11
H0005 Alcohol and/or drug services $74,528 7
H0004 Alcohol and/or drug services $67,980 7
H0049 Alcohol/drug screening $59,392 148
H0001 Alcohol and/or drug assess $28,257 2
H0050 Alcohol/drug service 15 min $10,643 2
H1003 Prenatal at risk education $252 3

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.



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