Medicaid payments for Alcohol and Drug Abuse Treatment surge to $423,025 in Tesuque in 2024

In 2024, Medicaid providers in Tesuque reported $423,025 in billings for services falling under the Alcohol and Drug Abuse Treatment category, based on figures from the U.S. Department of Health and Human Services Medicaid Provider Spending database. This amount was a 173.2% increase from 2023, when claims for these services totaled $154,868.

Medicaid is a public health insurance system managed at the state level and funded through a partnership of federal and state governments. It provides coverage to low-income groups, the elderly, children, and individuals with disabilities, representing a significant portion of the U.S. healthcare system.

Taxpayer funds support Medicaid, so shifts in billing locally illustrate how public healthcare funding is distributed within communities.

The “Alcohol and Drug Abuse Treatment” designation encompasses a set of Medicaid-billed services identified by the nature of care, using grouped HCPCS and CPT codes. This analysis assigned each billing code to only one service category through consistent code groupings, ensuring related services were aggregated correctly and double counting was avoided, preserving the integrity of rankings over time.

Among the various service types, Alcohol and Drug Abuse Treatment held the top spot in Tesuque by total Medicaid payments in 2024.

Statewide in New Mexico, Alcohol and Drug Abuse Treatment ranked fourth based on overall Medicaid payments during 2024.

Between 2019 and 2024, Medicaid payments related to Alcohol and Drug Abuse Treatment in Tesuque rose by $423,025, registering 0% overall growth. There were accelerated periods, including significant annual increases captured in 2022 and 2022.

Though Alcohol and Drug Abuse Treatment spending occurred citywide, it was focused in a select few ZIP codes. In 2024, ZIP code 87574 alone accounted for $423,024 in Medicaid payments for this category, making up 100% of the city’s Medicaid spending on Alcohol and Drug Abuse Treatment this year.

Within the Alcohol and Drug Abuse Treatment category, a limited number of billing codes received the majority of Medicaid payments.

Looking at all Medicaid claim categories in Tesuque, Alcohol and Drug Abuse Treatment category payments grew by 173.2% between 2024 and 2023, compared to a 29.2% change across all categories in the city over the same timeframe.

Centers for Medicare & Medicaid Services data shows that combined federal and state spending on Medicaid climbed to about $871.7 billion in fiscal year 2023, which represented approximately 18% of total U.S. health expenditures. This was a sharp increase from about $613.5 billion in 2019, prior to the COVID-19 pandemic.

This increase translates to about 40% growth in recent years, largely attributed to broader enrollment and increased usage during and after the pandemic.

New federal budget measures under the Trump administration feature major proposals to curtail federal Medicaid support and reshape the program. The “One Big Beautiful Bill Act,” enacted in 2025, is projected to reduce federal Medicaid outlays by more than $1 trillion over the coming decade. It also enacts new policies—including work requirements and cost-sharing—that may restrict coverage and reduce funding for some recipients. These provisions are set to shift financial responsibility onto states and limit federal growth, even as Medicaid continues to serve millions across the country.

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.