Red Wing Medicaid reimbursements for COVID-19 services total at least $800 in 2024

Data from the U.S. Department of Health and Human Services Medicaid Provider Spending database shows that Medicaid reimbursements in Red Wing reached at least $800 in 2024 for services billed under HCPCS codes directly associated with COVID-19.

Medicaid is a state-administered public health insurance program supported jointly by state and federal governments. The program provides coverage for low-income people, seniors, children, and individuals with disabilities, making it a major segment of the nation’s health care system.

Because the funding for Medicaid comes from public sources, shifts in local billing patterns indicate how health care resources are distributed in local communities.

This analysis classified COVID-19–related services using HCPCS codes identified as “COVID-19” or “coronavirus”-related in official billing documentation or reference data. Consequently, only services specifically labeled as COVID-related are included in these figures; services related to the pandemic billed under wider or different codes are not captured.

Minneapolis, in comparison, had the highest Medicaid payments for COVID-19 services statewide in 2024, with $269,940 in virus-related claims.

The mean Medicaid payment for COVID-19–linked services per provider in Red Wing was $400, which is lower than Minnesota’s average of $9,636.

There was an increase of $366,868, or 8.8%, in total Medicaid payments for all other claim types in Red Wing between 2020 and 2024.

During the two years before the pandemic began, Red Wing’s average annual Medicaid payments were $4,073,157.

The Centers for Medicare & Medicaid Services report that combined state and federal Medicaid expenditures reached about $871.7 billion in fiscal year 2023—roughly 18% of total national health spending—a significant rise from $613.5 billion in 2019, prior to the COVID-19 pandemic.

This increase amounts to about 40% over a short period, mainly resulting from expanded Medicaid rolls and increased usage of care during and after the pandemic period.

Major federal budget initiatives enacted during the Trump administration included extensive proposals to tighten federal Medicaid funding and alter the structure of the program. Among these, the “One Big Beautiful Bill Act,” signed into law in 2025, is expected to cut federal Medicaid spending by more than $1 trillion over the coming decade. The law also outlines increased cost-sharing and work requirements, which may shrink coverage and funding for certain enrollees. These measures are anticipated to transfer additional costs to state governments and curb future federal growth for Medicaid, even as the program still covers tens of millions across the country.

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

This article is based on information from the U.S. Department of Health and Human Services Medicaid Provider Spending database. The original dataset is accessible here.