Medicaid spent at least $30,604 on COVID-19 services in Rainbow City in 2024

At least $30,604 in Medicaid funds were paid out in Rainbow City during 2024 for services billed under HCPCS codes specifically linked to COVID-19, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. That total marked a 32.7% rise over 2023, when Medicaid claims for the same set of codes totaled $23,063.

Medicaid, administered by the states and jointly funded by state and federal governments, is a public health insurance program serving low-income individuals, families, children, seniors, and people with disabilities. It remains one of the largest components of the health care system in the U.S.

Because tax dollars support Medicaid, local billing changes reflect shifts in how public funds for health care are distributed within a community.

COVID-19 services in this analysis were counted by identifying HCPCS codes labeled as “COVID-19” or “coronavirus” in billing records or reference materials. These figures therefore represent only those services explicitly coded for COVID-19, leaving out pandemic-driven care billed under other medical codes.

For context, Birmingham posted Alabama’s highest total of Medicaid payments for COVID-19 services in 2024, with $1,029,178 in such claims.

Two health providers in Rainbow City billed Medicaid for COVID-19 services in 2024. The Immunoassay code was the most used, accounting for $26,679 of the city’s total.

Rainbow City’s average Medicaid COVID-19 payment per provider was $15,302, compared to the state average of $35,056.

During the pandemic, Medicaid expenditures for COVID-19–specific services became a notable part of overall Medicaid spending growth in Rainbow City.

Medicaid payments for all other claims grew by $1,045,445 from 2021 to 2024, an increase of 70.9%.

Average annual Medicaid payments in Rainbow City during the two years before the pandemic reached $809,003.

According to the Centers for Medicare & Medicaid Services, total state and federal Medicaid spending climbed to about $871.7 billion in fiscal 2023, representing roughly 18% of all U.S. health expenditures, a substantial jump from $613.5 billion in 2019 before the pandemic.

That growth means spending on Medicaid increased by around 40% within a few years, fueled mostly by higher enrollment and increased service use during and after the pandemic.

Recent federal budget changes under the Trump administration have included major proposals to cut federal Medicaid spending and revise the program’s structure. The “One Big Beautiful Bill Act,” signed into law in 2025, is projected to reduce federal Medicaid outlays by more than $1 trillion over the next decade while introducing work requirements and greater cost-sharing. These changes could shift more costs to states and lower available coverage and funding for some groups, even as Medicaid continues to serve millions nationwide.

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

Data for this article are sourced from the U.S. Department of Health and Human Services Medicaid Provider Spending database. The source data is available here.