Kotzebue Medicaid spending on COVID-19 services hits $65,599 in 2024

In 2024, Medicaid payments for COVID-19–specific services totaled no less than $65,599 in Kotzebue, according to figures provided by the U.S. Department of Health and Human Services Medicaid Provider Spending database.

Medicaid, a public health insurance initiative run at the state level and financed with both state and federal funds, covers seniors, children, those with disabilities, and low-income families, making it one of the main components of health care in the U.S.

Taxpayers ultimately fund Medicaid payments, so shifts in local billing illustrate how communities allocate health care funds from public sources.

This review defined COVID-19–related services as those billed under HCPCS codes categorized as “COVID-19” or “coronavirus” in either billing descriptions or reference data. These figures reflect only services tagged as COVID-19–related in billing records and exclude other pandemic-linked services billed through alternative medical codes.

Nome led Alaska in Medicaid spending tied to COVID-19 services in 2024, registering $271,631 in claims related to the coronavirus for comparison.

Kotzebue saw three providers bill Medicaid for COVID-19–related services in 2024, with the most used reimbursement code, COVID Specific, making up the whole of the $65,599 paid.

For further perspective, the average Medicaid payment per Kotzebue provider for COVID-19–related care was $21,866—less than the Alaska state average of $26,339 in the same year.

COVID-19–specific services marked a significant portion of Medicaid spending growth in Kotzebue during the pandemic years.

Medicaid payments across other claim categories rose by $4,447,528 from 2020 through 2024, a gain of 64% over the period.

In the two years before the pandemic, Kotzebue’s annual average Medicaid payments stood at $10,057,238.

According to the Centers for Medicare & Medicaid Services, combined state and federal Medicaid expenditures reached approximately $871.7 billion in fiscal year 2023, which was around 18% of total national health costs, up from about $613.5 billion in 2019 before COVID-19 emerged.

This represents an almost 40% increase in a short period—primarily due to rising enrollment and higher use of services during and after the pandemic.

Recent federal budget laws from the Trump administration have brought broad proposals for cuts and restructuring of Medicaid. Specifically, the “One Big Beautiful Bill Act,” enacted in 2025, is expected to reduce federal Medicaid spending by over $1 trillion during the next 10 years, adding work requirements and increased cost-sharing that could limit coverage and funding for some beneficiaries. These changes are anticipated to move more financial responsibility to states and restrain federal Medicaid growth, even as enrollment keeps tens of millions covered.

Note: Only HCPCS codes expressly designated for COVID-19 services are included; totals exclude broader pandemic-related expenditures.

This report is based on data from the U.S. Department of Health and Human Services Medicaid Provider Spending database. The underlying data is accessible here.