Knoxville Medicaid providers reported at least $377,077 in COVID-19 care payments in 2024

Data from the U.S. Department of Health and Human Services Medicaid Provider Spending database shows that Medicaid payments in Knoxville reached at least $377,077 in 2024 for services billed under HCPCS codes categorized specifically for COVID-19.

Medicaid, administered at the state level and funded by both federal and state governments, insures low-income residents, seniors, children, and people with disabilities, making it a leading component of American health care.

With Medicaid payments funded by taxpayers, local billing patterns reflect how public health care dollars are used within a community.

For the purposes of this analysis, services were counted if the HCPCS code description or relevant reference data directly classified the care as “COVID-19” or “coronavirus” related. Therefore, totals only include services coded as COVID-related in the billing data and may not cover broader pandemic care listed under other codes.

For comparison, Spring Hill registered the highest Medicaid payments tied to COVID-19 services within Tennessee in 2024, at $4,274,403 in claims related to the virus.

Fifteen providers in Knoxville submitted COVID-19–related Medicaid claims in 2024. Among these, COVID Specific was one of the highest-billed codes, accounting for $295,053.

By provider, the average Medicaid payment for COVID-19–related care in Knoxville was $25,138 in 2024, which is lower than the Tennessee state average of $43,799.

COVID-19–specific services made up a noticeable portion of Medicaid expenditure growth in Knoxville during the pandemic years.

Total Medicaid spending across all other claim types grew by $59,050,355 from 2020 to 2024, a 36% rise.

Annual average Medicaid payments in Knoxville for the two years prior to the pandemic were $152,156,270.

Centers for Medicare & Medicaid Services data indicates that federal and state Medicaid expenditures totaled approximately $871.7 billion in fiscal year 2023, or around 18% of overall U.S. health expenses, rising significantly from about $613.5 billion in 2019, before the pandemic.

This amounts to an increase of nearly 40% over a short period, much of which is attributed to expanded eligibility and higher usage during and following the pandemic.

Federal budget measures passed during the Trump administration contained notable reforms targeting Medicaid funding. One example is the “One Big Beautiful Bill Act,” enacted in 2025, which is expected to cut federal Medicaid spending by more than $1 trillion over 10 years, adding elements such as work requirements and greater cost-sharing that could decrease coverage and payments for certain groups. These changes will likely increase state financial responsibility and limit federal funding growth, even as Medicaid remains a critical program.

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

All data in this article is drawn from the U.S. Department of Health and Human Services Medicaid Provider Spending database. Access the underlying data here.