Tyler Medicaid payouts for medical and surgical supplies rise to $6,594,651 in 2024

In 2024, Tyler Medicaid providers billed $6,594,651 for services included in the Medical And Surgical Supplies category, according to data accessed from the U.S. Department of Health and Human Services Medicaid Provider Spending database. This represents a 22.2% increase over 2023, when $5,398,055 in claims were submitted for this service type.

Medicaid is administered individually by states and is funded jointly by federal and state governments. The program insures low-income people, seniors, children, and those with disabilities, making it a major component of the nation’s health care infrastructure.

Because taxpayer funds support Medicaid, shifts in local billing levels reflect how public health care resources are distributed within a community.

The “Medical And Surgical Supplies” classification groups services based on the care provided, with standardized HCPCS and CPT code groupings. Consistent code prefixes and numeric ranges were used to assign each billing code to a single service category for this analysis, enabling related services to be tracked together while preventing double counting and ensuring accurate comparisons across years.

Spending in the Medical And Surgical Supplies category rose among several service types, and this category ranked fourth by Medicaid payment total in Tyler for 2024.

At the state level in Texas, Medical And Surgical Supplies ranked 11th in total Medicaid payments for 2024.

Between 2019 and 2024, Medicaid payments tied to Medical And Surgical Supplies in Tyler grew by $6,549,271, or 14432.2%. Growth accelerated in certain periods, particularly in 2020 and 2023, with large annual gains.

Payments for Medical And Surgical Supplies were distributed throughout the city, but a small number of ZIP codes concentrated most of the dollars. In 2024, ZIP code 75701 accounted for $6,594,650 in claims, and 75702 for $0; together, these 2 ZIP codes made up 100% of related Medicaid payments across Tyler this year.

A limited group of individual billing codes attracted the bulk of spending within the broader Medical And Surgical Supplies category.

Comparing the years 2024 and 2023, Medicaid payments in this category rose 22.2% in Tyler, while citywide Medicaid payments across all claim categories increased by 18.2% during the period.

According to the Centers for Medicare & Medicaid Services, federal and state Medicaid spending together totaled about $871.7 billion in fiscal year 2023, or about 18% of total national health spending, up significantly from nearly $613.5 billion in 2019, before the onset of the COVID-19 pandemic.

This rise equates to about 40% growth in a few years, mainly resulting from expanded enrollment and increased service use during and following the pandemic.

Recent federal budget actions under the Trump administration have brought wide-ranging proposals to reduce federal Medicaid funding and modify the program. The “One Big Beautiful Bill Act,” signed into law in 2025, is expected to shrink federal Medicaid spending by more than $1 trillion over the next 10 years. It also enacts measures such as work requirements and higher cost sharing, which could decrease coverage and funding for some participants. As a result, states are projected to bear higher costs with limits on federal funding increases, despite the program serving tens of millions of people nationwide.

Note: HCPCS codes are provided for reference within the category. Category totals and rankings throughout this article are based on standardized service groupings, not individual billing codes.

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