Boston Medicaid spent at least $691,711 on COVID-19 services in 2024

In 2024, at least $691,711 in Medicaid payments in Boston were made for services billed under HCPCS codes directly connected to COVID-19, based on data from the U.S. Department of Health and Human Services Medicaid Provider Spending database.

Medicaid, a public health insurance initiative managed by states and jointly funded by federal and state governments, provides coverage for low-income individuals and families, children, seniors, and people with disabilities, making it a major component of the U.S. health care landscape. More details can be found at the Commonwealth Fund.

As taxpayer-funded spending, fluctuations in local Medicaid billing can indicate how public resources are distributed across health care in a given area.

For this report, services considered COVID-19–related were those identified by HCPCS codes labeled as “COVID-19” or “coronavirus” in billing records or reference data. Therefore, these amounts reflect only claims where COVID-specific labeling was present and exclude services related to the pandemic billed under broader or alternate medical codes.

Across the state, Boston posted the largest Medicaid expenditures related to COVID-19 services in 2024.

There were 19 providers in Boston that filed Medicaid claims for COVID-19–related services during 2024. The code labeled COVID Specific was the most billed, accounting for $433,265.

On average, Medicaid providers in Boston received $36,406 for COVID-19–related services, surpassing the statewide average of $28,676.

During the pandemic years, spending on COVID-19–specific services contributed significantly to Medicaid cost growth in Boston.

Overall Medicaid payments in all other categories increased $63,733,056 from 2020 to 2024, which equals an 8.9% rise.

Centers for Medicare & Medicaid Services data shows combined state and federal Medicaid spending hit about $871.7 billion in fiscal year 2023, making up roughly 18% of all national health expenditures, up sharply from about $613.5 billion in 2019, before the COVID-19 pandemic emerged.

This growth reflects an increase of around 40% over several years, largely due to higher enrollment and increased usage during and after the pandemic years.

Federal budget legislation signed under the Trump administration has introduced notable proposals to cut federal funding for Medicaid and to reconfigure the program. For instance, the “One Big Beautiful Bill Act,” enacted in 2025, is expected to reduce federal Medicaid spending by over $1 trillion over the next 10 years. The law adds policies such as work requirements and additional cost-sharing that may reduce coverage and funding for certain recipients. These changes are anticipated to increase states’ share of Medicaid costs and restrict federal Medicaid growth even as the program continues to serve tens of millions across the country.

Note: These figures include only HCPCS codes identified as specific to COVID-19 services; totals do not account for all health care spending related to the pandemic.

This article uses information drawn from the U.S. Department of Health and Human Services Medicaid Provider Spending database. Source data are available here.