COVID-19 led to more than $1.43 million in New Orleans Medicaid claims in 2024

At least $1,432,965 in Medicaid payments were made in New Orleans in 2024 for services with HCPCS codes directly tied to COVID-19, according to data from the U.S. Department of Health and Human Services Medicaid Provider Spending database.

Medicaid—the state-administered, jointly funded public health insurance program—covers low-income people and families, older adults, children, and individuals with disabilities, making it a large component of the U.S. health system. Federal and state governments fund Medicaid together.

Since Medicaid is taxpayer-funded, shifts in local billing reflect how a community allocates its public health care dollars.

COVID-19–related services in this review were determined by identifying HCPCS codes that billing data or reference materials specifically labeled as “COVID-19” or “coronavirus.” The reported numbers therefore cover only services clearly indicated as COVID-related and do not include pandemic response care billed under more general health codes.

Across Louisiana, New Orleans registered the highest total of Medicaid spending for COVID-19 services in 2024.

During 2024, 15 New Orleans providers billed Medicaid for COVID-19–linked services. The most heavily billed category was COVID Specific, totaling $1,000,444.

Average Medicaid billing for COVID-related services per provider in New Orleans reached $95,531, much higher than the state’s overall average of $47,068.

Medicaid spending on COVID-19–specific services played a significant role in the growth of overall Medicaid outlays in New Orleans during the pandemic.

Total Medicaid payments for all non-COVID claims in New Orleans climbed by $56,260,402 between 2020 and 2024, a 23.9% increase.

In the two years before the pandemic, the average annual Medicaid payments in New Orleans were $241,525,057.

According to the Centers for Medicare & Medicaid Services, combined state and federal Medicaid spending was approximately $871.7 billion in fiscal year 2023, comprising an estimated 18% of U.S. total health expenditures—a sharp increase from $613.5 billion in 2019 before COVID-19.

This marks nearly 40% growth over a short period, prompted by an expanded enrollment base and heightened service usage during and after the pandemic.

Recent federal legislation under the Trump administration brought forth notable efforts to decrease federal Medicaid funding and reorganize the program. The “One Big Beautiful Bill Act,” signed into law in 2025, is anticipated to reduce federal Medicaid spending by over $1 trillion over 10 years. Provisions include work requirements and higher cost-sharing, which could impact beneficiary coverage and program funding. States are expected to bear more costs under these changes, which may restrict growth in federal participation while the program continues to aid millions of Americans.

Note: Includes only those HCPCS codes specifically labeled for COVID-19. Data does not account for all pandemic-related spending in health care.

Information for this report comes from the U.S. Department of Health and Human Services Medicaid Provider Spending database. Source data is available here.