Medicaid spending on vision services in South Dakota climbs to $3,482,139 in 2024

South Dakota saw Medicaid payments for vision services reach $3,482,139 in 2024, data from the U.S. Department of Health and Human Services Medicaid Provider Spending database shows. This represents an increase of 22.8% over 2023, when providers filed $2,835,300 in claims.

Medicaid is a publicly funded health insurance program operated by each state and jointly financed by federal and state governments. It provides coverage to low-income individuals and families, seniors, children, and those with disabilities, making it a key component of America’s health care system.

Since Medicaid funds are sourced from taxpayers, local shifts in billing reflect how public health care resources are distributed in communities.

The “Vision Services” category includes Medicaid-billed services designated by the type of care delivered, categorized using standardized HCPCS and CPT code groupings. For the purposes of this report, each service code was grouped into a single category based on shared code prefixes and numbers, allowing for consistent analysis, preventing double counting and supporting trend comparisons.

Some categories may cover several related service types. When relevant, a category comprises linked care commonly billed to Medicaid together, such as office visits, diagnostic tests and various treatment procedures.

From 2019 through 2024, South Dakota Medicaid payments for vision services rose by $2,205,556, or 172.8%. Growth accelerated during some intervals, with significant annual increases recorded in 2021 and 2022.

While vision-related Medicaid spending occurred across the state, the majority was concentrated within a few ZIP codes. In 2024, ZIP Code 57701 led with $676,854 (19.4% of the total), followed by ZIP Code 57401 at $631,524 (18.1%), and ZIP Code 57106 with $289,429 (8.3%).

The three highest-billed ZIP codes made up 45.9% of all Medicaid payments for vision services in South Dakota during 2024.

Looking at all service categories, Medicaid payments statewide increased 17.4% between 2023 and 2024.

Although Medicaid expenditures rose across various categories, vision services ranked within the top 12 by total payments statewide in 2024.

According to the Centers for Medicare & Medicaid Services, total federal and state Medicaid spending was about $871.7 billion in fiscal year 2023, comprising about 18% of national health expenditures, a sharp increase from $613.5 billion in 2019 prior to the COVID-19 pandemic.

This change marks a rise of approximately 40% in a few years, largely due to expanded membership and increased use of services during and following the pandemic.

Recent federal budget packages under the Trump administration have proposed sizable cuts to Medicaid funding and changes to the program’s structure. The “One Big Beautiful Bill Act,” signed in 2025, is estimated to reduce federal Medicaid spending by more than $1 trillion over the next 10 years. It establishes measures such as work requirements and higher cost-sharing, potentially decreasing coverage and funding for certain enrollees. These adjustments could place greater cost responsibility on states and curb federal Medicaid funding growth, even as the program continues to assist tens of millions nationwide.