In 2024, providers in Paramus billed a total of $59,923,688 to Medicaid for Alcohol and Drug Abuse Treatment services, data from the U.S. Department of Health and Human Services Medicaid Provider Spending database shows. This represented a 1.2% rise over the $59,219,371 reported for similar services in 2023.
Medicaid, a public insurance initiative administered by states and financed collectively by federal and state governments, supports low-income individuals and families, children, seniors, and those with disabilities. This places it among the largest components of the nation’s health care infrastructure.
Since money for Medicaid payments is taxpayer-sourced, fluctuations in local billing help illustrate how health care funds are distributed within the community.
The “Alcohol and Drug Abuse Treatment” category encompasses services distinguished by the provided care type, categorized according to standard HCPCS and CPT coding groupings. For the calculation in this report, each billing code was allocated to one service group using consistent prefixes and numeric intervals, ensuring compatible services were grouped without overlap or double-counting and maintaining consistent annual ranking comparisons.
Paramus led all Medicaid service payment categories with Alcohol and Drug Abuse Treatment, ranking first in 2024 for overall amounts billed under Medicaid here.
Statewide in New Jersey, Alcohol and Drug Abuse Treatment was also the highest category by Medicaid payments for 2024.
During the five years before 2024, Medicaid payments connected to Alcohol and Drug Abuse Treatment in Paramus climbed $16,163,342 — an increase of 36.9%. The growth rate was faster in some years, with significant year-over-year gains notable in both 2020 and 2023.
Though spending in this category was distributed across Paramus, most Medicaid payments were focused within a small set of ZIP codes. In 2024, ZIP code 07652 led the way, generating $59,923,687 billed, representing 100% of related Medicaid payments for Alcohol and Drug Abuse Treatment in Paramus that year.
Likewise, a small group of billing codes accounted for the majority of these Medicaid payments within the Alcohol and Drug Abuse Treatment classification.
To compare, Medicaid payments for Alcohol and Drug Abuse Treatment in Paramus rose 1.2% from 2023 to 2024, while total Medicaid claims for all categories in the city increased by 2.5% during the same timeframe.
The Centers for Medicare & Medicaid Services report that combined federal and state Medicaid expenditures reached approximately $871.7 billion for fiscal year 2023. This represented about 18% of total national health spending, up considerably from $613.5 billion in 2019, prior to the COVID-19 pandemic.
The nearly 40% increase over a few years was mainly fueled by broader enrollment and greater health service utilization when the pandemic and its aftermath led to higher health care needs.
The Trump administration’s recent budget initiatives have included broad proposals reducing federal Medicaid outlays and revamping the program’s structure. The “One Big Beautiful Bill Act,” enacted in 2025, is projected to reduce federal Medicaid funding by more than $1 trillion across the coming decade and put in place provisions like work requirements and more cost-sharing, which may reduce both coverage levels and funding for certain recipients. These modifications are anticipated to place more financial responsibility on states and curtail federal contributions to the program, while Medicaid remains vital for millions of Americans.
| Year | Total Medicaid Payments | % Change From Previous Year |
|---|---|---|
| 2020 | $43,760,345 | 18.3% |
| 2021 | $48,405,839 | 10.6% |
| 2022 | $50,509,761 | 4.3% |
| 2023 | $59,219,371 | 17.2% |
| 2024 | $59,923,687 | 1.2% |
| Rank | Category | Medicaid Payments | Share of City Total |
|---|---|---|---|
| 1 | Alcohol and Drug Abuse Treatment | $59,923,687 | 57.1% |
| 2 | National Codes Established for State Medicaid Agencies | $23,230,526 | 22.1% |
| 3 | Medicine Services and Procedures | $7,586,915 | 7.2% |
| 4 | Evaluation and Management | $7,278,918 | 6.9% |
| 5 | Temporary National Codes (Non-Medicare) | $4,631,667 | 4.4% |
| 6 | Pathology and Laboratory Procedures | $973,297 | 0.9% |
| 7 | Surgery | $768,067 | 0.7% |
| 8 | Procedures / Professional Services | $220,082 | 0.2% |
| 9 | Ambulance and Other Transport Services and Supplies | $181,092 | 0.2% |
| 10 | Radiology Procedures | $76,959 | 0.1% |
| 11 | Orthotic Procedures and services | $45,648 | <0.1% |
| 12 | Temporary Codes | $23,057 | <0.1% |
| 13 | Durable Medical Equipment | $7,226 | <0.1% |
| 14 | Vision Services | $3,559 | <0.1% |
| 15 | Medical And Surgical Supplies | $746 | <0.1% |
| 16 | Drugs Administered Other than Oral Method | $680 | <0.1% |
| 17 | Dental Services | $260 | <0.1% |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| H2016 | Comp comm supp svc, per diem | $54,957,903 | 48 |
| H0019 | Alcohol and/or drug services | $1,993,984 | 12 |
| H0035 | Mh partial hosp tx under 24h | $1,528,965 | 23 |
| H2021 | Com wrap-around sv, 15 min | $978,308 | 12 |
| H0046 | Mental health service, nos | $364,549 | 11 |
| H0015 | Alcohol and/or drug services | $88,209 | 7 |
| H0004 | Alcohol and/or drug services | $10,073 | 5 |
| H0003 | Alcohol and/or drug screenin | $1,694 | 10 |
| H0031 | Mh health assess by non-md | $0 | 11 |
| H0032 | Mh svc plan dev by non-md | $0 | 11 |
| H0036 | Comm psy face-face per 15min | $0 | 5 |
| H0048 | Spec coll non-blood:a/d test | $0 | 9 |
| H2027 | Psychoed svc, per 15 min | $0 | 11 |
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.
