Princeton sees 31.4% rise in Medicaid payments for pathology and laboratory services, reaching $577 in 2024

In 2024, Princeton Medicaid providers billed $577 for services under the Pathology and Laboratory Services category, as shown in the U.S. Department of Health and Human Services Medicaid Provider Spending database. This amount reflects a 31.4% rise compared to 2023, when $439 in claims were submitted for these services.

Medicaid is operated by individual states but is funded by both federal and state governments. The program provides health coverage for low-income families and individuals, as well as seniors, children, and people with disabilities, ranking among the largest programs in the U.S. health care system.

Because Medicaid payments use taxpayer funds, variations in local billing levels illustrate the allocation of public health care resources in a given community.

The “Pathology and Laboratory Services” designation includes a selection of Medicaid-billed care types organized by standard HCPCS and CPT code series. Each billing code was assigned to a single service group using defined code prefixes and number ranges for this report, grouping related services, avoiding overlap, and maintaining rankings consistency over time.

Though overall Medicaid payments grew across service groups, Pathology and Laboratory Services placed eighth for total Medicaid-paid amounts in Princeton in 2024.

Statewide in Kentucky, Pathology and Laboratory Services held the 25th spot based on total Medicaid payments for 2024.

Looking at the five years ending in 2024, Medicaid spending on Pathology and Laboratory Services in Princeton rose by $1, or 0.2%. Spurts of faster annual growth were recorded in 2021 and 2020.

While these services were provided throughout the city, most Medicaid payments to Pathology and Laboratory Services were concentrated in a few ZIP codes. In 2024, charges in ZIP code 42445 accounted for $576, making up 100% of Medicaid spending for this category in Princeton during the year.

Within Pathology and Laboratory Services, Medicaid spending was focused on a select number of billing codes.

For added context, payments related to this service group climbed 31.4% from 2023 to 2024 in Princeton, while total Medicaid claims in the city saw a 34.7% increase in that period across all categories.

The Centers for Medicare & Medicaid Services reports combined federal and state Medicaid spending reached approximately $871.7 billion in fiscal year 2023, accounting for about 18% of national health expenditures, a substantial increase from roughly $613.5 billion in 2019 before the COVID-19 pandemic began.

This is an increase of around 40% over several years, largely tied to broader enrollment and stronger health care use during and following the pandemic.

Recent federal budget laws during the Trump administration have included major efforts to reduce federal Medicaid funding and shift its structure. For instance, the “One Big Beautiful Bill Act,” enacted in 2025, is estimated to reduce federal Medicaid spending by over $1 trillion in the next decade. The law adds policies like work requirements and more cost-sharing, potentially decreasing benefits and funding for some recipients. This will likely increase the fiscal responsibility of states and restrict growth in federal Medicaid aid, even as the program continues to cover tens of millions nationwide.

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.