In Rancho Santa Margarita, Medicaid provided at least $53,647 in payments during 2024 for services billed under HCPCS codes specifically designated for COVID-19, according to the U.S. Department of Health and Human Services Medicaid Provider Spending database. This was a 41.7% increase from the prior year, when providers submitted $37,855 in claims through the same codes.
Medicaid, jointly funded by federal and state governments, is a public health insurance program managed by the states that covers low-income individuals and families, seniors, children, and those with disabilities, making it one of the nation’s largest health care programs.
Since taxpayer money supports Medicaid payments, fluctuations in local claims reflect the distribution of public health funds within each community.
For this report, COVID-19–specific services were identified by HCPCS codes labeled as “COVID-19” or “coronavirus” in official billing descriptions or reference data. Therefore, the amounts represent only services explicitly coded as COVID-related, and may not include other pandemic care billed under broader or alternative codes.
San Jose saw the highest Medicaid total in California for COVID-19–related services in 2024, reporting $5,601,479 in such claims as a point of comparison.
In Rancho Santa Margarita, Spectrum Molecular Diagnostics Laboratory Corp was the sole provider submitting Medicaid claims for COVID-19 services in 2024, according to the data.
During the pandemic, COVID-19–specific services contributed significantly to the growth in Medicaid spending in the city.
Total Medicaid payments in all other categories increased by $457,168 between 2020 and 2024, a 578% jump over that period.
In the two years before the pandemic, average annual Medicaid payments in Rancho Santa Margarita were $23,941.
According to the Centers for Medicare & Medicaid Services, joint federal and state Medicaid spending totaled around $871.7 billion during fiscal year 2023, making up about 18% of total U.S. health expenditures, a significant increase from $613.5 billion in 2019, before the COVID-19 pandemic.
This rise equates to nearly 40% growth across just a few years, largely driven by higher enrollment and increased use during and after the pandemic.
Recent federal budget measures under the Trump administration have introduced major proposals to reduce federal Medicaid outlays and alter the program’s structure. The “One Big Beautiful Bill Act,” signed in 2025, is set to trim over $1 trillion from federal Medicaid spending over the coming decade and implements requirements such as work eligibility and higher cost-sharing, which could lead to decreased coverage and funding for affected beneficiaries. These adjustments are expected to increase the share of Medicaid costs carried by states and slow the expansion of federal support, even as the program continues serving tens of millions nationwide.
| Year | COVID-19–Related Payments | COVID-19 Payments % Change (YoY) | Total Medicaid Payments |
|---|---|---|---|
| 2024 | $53,647 | 41.7% | $589,909 |
| 2023 | $37,855 | -96% | $768,709 |
| 2022 | $936,987 | 143.6% | $1,251,421 |
| 2021 | $384,618 | 5,786.5% | $696,182 |
| 2020 | $6,534 | N/A | $85,628 |
| 2019 | $0 | N/A | $40,059 |
| 2018 | $0 | N/A | $7,823 |
| HCPCS Code | Description | Medicaid Payments | Claims |
|---|---|---|---|
| 87635 | COVID Specific | $53,647 | 2,452 |
Note: Includes HCPCS codes explicitly labeled for COVID-19 services; totals do not represent all pandemic-related health care spending.
The information for this article is sourced from the U.S. Department of Health and Human Services Medicaid Provider Spending database. The full dataset is available here.

