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Industry Advocacy Resource

Radiation Oncology Fee Schedule Changes

Ron DiGiaimo, MBA FACHE — Chairman of R3 and CEO of RC Billing — has been leading ongoing advocacy around reimbursement conditions threatening radiation oncology access across the country. This page centralizes his research, state-level findings, and advocacy materials, and is maintained and supported by RCCS.

Led by Ron DiGiaimo, MBA FACHE • Supported by RCCS
Updated: September 2026 Codes: 77387 • 77402 • 77407 • 77412 40+ States Documented
By accessing content on this site, you are accepting the CPT® End User Point and Click Agreement. You may review or reject the agreement here.
On this page: Perspective Status Rate Table Wins Impact Get Involved Letters Updates ★ Training
Ron’s Perspective
Jump to: Current Status ↓

A Reimbursement Problem Becoming an Access Problem

Radiation oncology is facing a reimbursement challenge that extends well beyond administrative complexity. Current fee schedule gaps are shaping whether treatment centers remain operationally viable, how patients are scheduled, and whether services remain accessible — particularly in community and rural markets.

Approximately 60% of cancer patients require radiation therapy at some point in their treatment journey. When reimbursement fails to support the cost of care delivery, access erodes — gradually at first, then quickly.

This is not cost containment. It is a quiet withdrawal of access by attrition — and in parts of the country, it is already underway. Practices cannot sustain advanced linear accelerators, physics coverage, QA programs, and clinical staffing on rates that don’t approach the cost of the treatment they nominally pay for.

Ron DiGiaimo, MBA, FACHE — Chairman, R3 • CEO, RC Billing

Radiation oncology is not standing still — but payment models often are.

Clinical advancements, including hypofractionation and improved image guidance, are reducing treatment burden for patients and improving outcomes. These are meaningful gains. But in a fee-for-service structure, fewer treatments per patient also means reduced revenue per patient — which compounds the pressure already created by inadequate Medicaid reimbursement.

What used to be sustainable at twelve to fifteen patients on treatment now often requires twenty or more just to maintain a center, with margins at or near break-even. That math is difficult in any setting. In rural and community markets, it is often impossible.

This is not about doing less for patients. It is about ensuring the system supports doing the right thing. The clinical progress this specialty has made is real. The payment infrastructure needs to catch up.

States cannot continue to defer correction. When access erodes in a community — especially underserved communities — rebuilding it is substantially harder than holding onto it. That is the urgency here, and why I am raising this flag now.

Ron DiGiaimo, MBA FACHE Chairman, R3 • CEO, RC Billing • [email protected] • LinkedIn
Featured Analysis — RCCS Newsroom
“Fee schedules aren’t passive documents. They drive decisions about whether a service line stays viable, whether a center keeps investing in technology and people, whether capacity stays open, and whether patients can get treatment close to home.”
Read the Full Analysis →
Current Status
Jump to: Rate Data ↓

What We Know — and What Is Still Evolving

Confirmed
  • The January 1, 2026 coding transition consolidated treatment delivery into 77402, 77407, and 77412, and image guidance into 77387 — with materially changed definitions that required payers to rebuild fee schedules and retest claims processing.
  • Ron’s research now spans 40+ states and the District of Columbia, with documented Medicaid rates compared against locality-specific Medicare benchmarks for each state’s largest city.
  • The majority of state Medicaid programs have not properly updated their fee schedules for the 2026 restructuring. Many carry rate effective dates from 2014–2023, and Rhode Island’s delivery code rates date to 1996.
  • Complexity inversions — where higher-complexity codes pay less than lower-complexity codes — have been documented in at least seven states (AK, AZ, KS, NH, NV, NY, NC, VA), a direct artifact of mapping old dollar amounts onto redefined codes.
  • Three states (MO, MT, UT in part) effectively do not cover one or more delivery codes through their physician fee schedules. Missouri lists all three delivery codes as “Noncovered” with an effective date of 1992.
  • Formal outreach letters have been submitted to Medicaid agencies in 35 states, with positive outcomes in Oregon (missing codes corrected retroactive to 1/1/26) and Connecticut (77407 up 225%, 77412 up 295% effective 7/1/26).
Still Developing
  • Agency responses to formal outreach letters — some states (California) indicating correction timelines extending into 2027.
  • New Jersey rates are proposed pending CMS approval; the most recent figures (August 2026) show meaningful increases but are not yet final.
  • Colorado and Indiana Medicaid rates remain pending confirmation.
  • Administrative implementation lags: even states that did update took 1–8 months to load new codes into claims systems.
  • Codes carried as “By Report,” “Individual Consideration,” or technical-component-only in MA, NJ (77387), and NM (77387), leaving practices without a predictable payment floor.

This is not a single-state issue. It is a national payer-readiness issue playing out state by state.

State-Level Data
Jump to: Advocacy Outcomes ↓

Medicaid vs. Medicare: Rate Comparison by State

Current Medicaid FFS reimbursement rates for the primary radiation oncology codes, compared against Medicare benchmarks. Medicaid rates are statewide; Medicare figures are locality-adjusted for each state’s largest city. Rates verified August–September 2026 from state fee schedule portals and FastRVU (third-party Medicare calculator).

State77387 (IGRT)77402 (Lvl 1)77407 (Lvl 2)77412 (Lvl 3)
Alabama$24.07 (26)$50.18$189.42$272.53
Alaska$181.83$199.78$362.93$344.52 ↓
Arizona (AHCCCS)$46.37 (26)$136.92$248.65$236.04 ↓
Arkansas (R9)$44.27$148.37$350.11$431.53
California$0$42.40$38.77$43.20
ColoradoPendingPendingPendingPending
Connecticut$28.54$66.43$250.57 ↑$358.52 ↑
DelawareNot in sched.Not in sched.Not in sched.Not in sched.
Dist. of Columbia$32.01$77.40$292.00$417.90
Florida$46.17$87.04$149.00$158.42
GeorgiaNot listed$60.65$71.21$79.51
HawaiiNot listed$58.71$68.94$76.99
Idaho$30.12$65.05$245.61$351.68
Illinois$25.11$52.82$199.01$284.54
IndianaPendingPendingPendingPending
Iowa$63.51$60.41$70.96$79.25
Kansas$16.32 (26)$87.42$62.57 ↓$129.60
Kentucky$35.21$62.78$250.89$309.19
Louisiana$29.67$61.85$233.29$333.81
MaineNot listed$54.58$206.03$294.94
Maryland$38.29$85.35$120.70 *$139.45 *
MassachusettsAll codes: “Individual Consideration” — no fixed rate
Michigan$23.22$52.40$197.66$282.86
Minnesota$27.53$64.58$244.43$350.18
Mississippi$30.94$63.59$239.97$343.46
Missouri$29.71NoncoveredNoncoveredNoncovered
Montana$49.91 (26)Not listedNot listedNot listed
Nebraska$281.31 *$116.54$143.68$169.40
Nevada$41.20$147.79$268.35$254.74 ↓
New Hampshire$63.45$63.32$74.72$48.17 ↓
New JerseyBy Report$42.62$160.79$230.08
New Mexico$0$78.55$92.24$102.63
New York$71.10$98.20$166.27$151.45 ↓
North Carolina$83.15$95.88$150.37$145.65 ↓
North Dakota ✓$40.18$92.00$346.95$497.15
Ohio$53.31$66.79$145.01$137.66 ↓
Oklahoma$32.61$68.63$258.94$370.62
Oregon ✓$29.52$64.83$258.88$319.07
Pennsylvania$79.54$60.36$227.68$325.80
Rhode IslandNot listed$37.36$44.17$48.00
South Carolina$82.57$58.87$203.24$290.87
South Dakota ✓$35.74$81.72$308.63$442.01
TennesseeNo FFS physician fee schedule — TennCare is 100% managed care
Texas$60.68Delivery codes: Not Payable for physicians (TC only: $69/$260/$373 ages 0–20)
Utah$34.80Non-coveredNon-covered$408.10
Vermont$30.69$67.25$268.44$330.87
Virginia$31.54$120.91$219.55$208.42 ↓
Washington$21.79$51.79$195.50$279.77
West Virginia$25.38$52.46$197.64$282.55
Wisconsin$28.14$62.62$236.51$338.73
Wyoming$32.83$80.88$285.41$351.77
Medicare PFS (nat’l non-fac.)$36.74 (26)$79.49$317.64$391.46
Medicare HOPPS (nat’l)--$104.24$394.05$564.51

Key: (26) = professional component only. ↓ = complexity inversion. ↑ = rate increased since 1/1/2026. * = flagged anomaly (see below). Green rows = rates at or above Medicare. Medicare from FastRVU (third-party calculator, not CMS PFS Lookup).

Flagged: NE 77387 ($281.31) is 804% of Medicare — stale valuation from a predecessor code. MD 77407/77412 at ~36%/~29% of Medicare vs. ~97% for 77402 in the same file — not updated for 2026. OH applied a uniform 5% cut without recalculating against new definitions. NH 77412 at $48.17 (10.4% of Medicare) is the most severe underpayment found. RI rates date to 9/9/1996. MO delivery codes “Noncovered” since 1/1/1992. IA rates unchanged since 2018–2020. VA delivery codes effective 7/1/2014. WY 77402 effective 1/1/2017. NJ rates are August 2026 proposed (pending CMS approval).

Advocacy Outcomes
Jump to: Impact Assessment ↓

Where Advocacy Is Already Working

Engagement produces results. Four states demonstrate what correction and best practice look like — and serve as reference points for the agencies still under review.

✓ Advocacy Win — Oregon

Oregon Health Authority confirmed that CPT codes 77402 and 77407 were unintentionally omitted from their fee schedule. Rates of $64.83 (77402) and $258.88 (77407) are now payable, retroactive to January 1, 2026.

✓ Advocacy Win — Connecticut

Connecticut enacted substantial rate increases effective 7/1/2026: 77407 from $77.15 to $250.57 (+225%) and 77412 from $90.87 to $358.52 (+295%). The 77387 technical component was simultaneously dropped from the schedule, mirroring Medicare’s bundling policy.

✓ Model State — South Dakota

South Dakota Medicaid rates at or above Medicare benchmarks for all four codes. Ron submitted a formal commendation letter to Division Director Heather Petermann on May 27, 2026.

✓ Model State — North Dakota

North Dakota maintains rates at approximately 112% of Medicare across all four codes, reflecting a coherent annual update process tied to current Medicare RVUs with a 2% inflationary increase — a second strong reference point alongside South Dakota.

Impact Assessment
Jump to: Get Involved ↓

Implications for the Industry

Radiation oncology carries a high fixed-cost delivery model. Linear accelerators, imaging systems, QA infrastructure, physics coverage, and clinical staffing represent substantial, non-discretionary investment. Fee schedules that fail to approach cost create a compounding operational problem — not an administrative one.

Financial Viability

  • Practices cannot absorb ongoing operational costs at current reimbursement levels in many states
  • Capital investment in equipment cannot be sustained
  • Hypofractionation — while clinically superior — reduces sessions and compounds per-patient revenue loss
  • Community and rural centers are most exposed

Operational Pressure

  • Reduced treatment capacity as centers manage financial strain
  • Delayed patient scheduling and longer wait times
  • Staffing constraints and difficulty sustaining clinical teams
  • Reduced ability to invest in targeting technology

Patient Access

  • Reduced provider participation in Medicaid networks
  • Closure risk in rural and community settings
  • Increased travel burden for patients
  • Downstream cost increases to payers from unmanaged disease progression
  • Access erosion is gradual: delays, then fewer options, then loss of local care
Get Involved
Jump to: Letters ↓

Follow the Work & Join the Effort

Ron is actively engaging state Medicaid agencies and calling on providers, administrators, and industry organizations to add their voice.

Follow Ron on LinkedIn

Ron is posting ongoing developments, state-specific findings, and calls to action as this issue evolves.

Follow on LinkedIn →

Watch This Page

This resource is updated as new state data, agency responses, and advocacy materials become available. Bookmark it and share the URL with colleagues who should be engaged.

Sample Advocacy Letters

Ron has drafted state-specific letters to Medicaid agency directors documenting rate disparities and requesting immediate review. Copyable templates for 35 states are available below.

View Sample Letters ↓

Contact Ron Directly

Providers or organizations experiencing issues with the 2026 code transition, Medicaid rate disputes, or commercial payer misalignment are welcome to reach out.

[email protected] →
Advocacy Letters
Jump to: Updates Feed ↓

Sample Letters to State Medicaid Agencies

The following are Ron’s letters to Medicaid agency leadership. Adapt the bracketed fields for your organization before sending. Letters reflect data available at time of submission (April–May 2026); the rate table above contains the most current verified figures.

ALARAZCOCTDCFLGAHIIDINKSLAMAMEMIMTNCNENHNJNMNYOR ✓RISCSD ✓TXUTVAVTWAWIWVWY
Alabama

Alabama Medicaid Agency - Commissioner

▾ View
Verify the current Alabama Medicaid commissioner before submitting.
Arkansas

Arkansas DHS - Deputy Secretary and Medicaid Director

▾ View
Contact: Janet Mann - [email protected]. Key: inverted rate structure (77412 < 77407).
Arizona

Arizona AHCCCS - Interim Medicaid Director

▾ View
Contact: Roberta Harrison - [email protected]. Key: 77387 "By Report" + inverted rate structure.
Colorado

Health First Colorado - Medicaid Director

▾ View
Contact: Adela Flores-Brennan - [email protected]. CPT 77387 not in letter scope for CO.
Connecticut

CT Dept. of Social Services - Director, Div. of Health Services

▾ View
Contact: Bill Halsey - [email protected]. NOTE: CT has since enacted major rate increases eff. 7/1/2026 (see rate table).
Washington DC

DC Medicaid - Senior Deputy Director

▾ View
Ron's letter scope covers 77407 only ($292.00); rates for other codes now confirmed in rate table above.
Florida

Florida AHCA - Deputy Secretary for Medicaid

▾ View
Adjust bracketed fields before sending.
Georgia

Georgia DCH - Exec. Director, Medical Assistance Plans

▾ View
Contact: [email protected]. Key: 77387 not listed as payable.
Hawaii

Hawaii DHS - Med-QUEST Division Administrator

▾ View
Adjust bracketed fields before sending.
Idaho

Idaho DHW - Division Administrator for Medicaid

▾ View
Key: inverted rate structure (77412 < 77407).
Indiana

Indiana FSSA - Director of Medicaid

▾ View
Adjust bracketed fields before sending.
Kansas

KanCare - Medicaid Director

▾ View
Contact: [email protected]. Key: inverted rate structure (77407 < 77402).
Louisiana

Louisiana LDH - Medicaid Executive Director

▾ View
Key: 77387 at $11.87 and 77402 at $61.85 fall far below Medicare benchmarks.
Massachusetts

MassHealth - Medicaid Director

▾ View
Contact: [email protected]. Key: all four codes are "Individual Consideration" with no fixed rates.
Maine

Maine DHHS - Director, Office of MaineCare Services

▾ View
Contact: [email protected]. Key: 72.4% of Medicare policy compounds an already-inadequate baseline.
Michigan

Michigan MDHHS - Medicaid Director

▾ View
Contact: [email protected]. Delivery code rates now confirmed in rate table above.
Montana

Montana DPHHS - Medical Director

▾ View
Contact: [email protected]. Key: three core delivery codes are not listed as payable.
North Carolina

NC Medicaid - Interim Deputy Secretary

▾ View
Contact: [email protected]. Key: inverted rate structure (77412 < 77407).
Nebraska

Nebraska DHHS - Director of Medicaid

▾ View
Contact: [email protected]. CPT 77387 not in letter scope for NE.
New Hampshire

New Hampshire DHHS - Medicaid Director

▾ View
Contact: [email protected]. Key: complete pricing inversion (Lvl 3 < Lvl 1). Most severe underpayment in the dataset.
New Jersey

NJ DMAHS - Assistant Commissioner

▾ View
NOTE: NJ has since proposed significant rate increases (Aug 2026, pending CMS approval). See rate table for current proposed figures.
New Mexico

New Mexico HCA - Medicaid Director

▾ View
Contact: [email protected]. Key: 77387 at $0 and delivery rates far below Medicare.
New York

New York DOH - Medicaid Director

▾ View
Contact: [email protected]. Key: inverted rate structure (77412 < 77407).
Oregon ✓ Win

Oregon Health Authority - Medicaid Director

▾ View
Oregon confirmed missing codes now payable retroactive to 1/1/26. This letter advocates for continued rate adequacy.
Rhode Island

Rhode Island EOHHS - Asst. Secretary and Medicaid Director

▾ View
Contact: [email protected]. Key: delivery rates are 10-15% of Medicare. RI rates date to 9/9/1996.
South Carolina

SC Healthy Connections Medicaid - Medicaid Director

▾ View
Contact: [email protected].
South Dakota ✓ Win

South Dakota DSS - Division Director

▾ View
South Dakota rates are at or above Medicare - this is a commendation letter.
Texas

Texas HHSC - Medicaid Director

▾ View
Verify the current Texas Medicaid director before submitting. Key: delivery codes listed as Not Payable for physicians.
Utah

Utah DOH Medicaid - Medicaid Director

▾ View
Key: 77402 and 77407 absent from fee schedule; 77412 dramatically below Medicare benchmarks.
Virginia

Virginia DMAS - Director of Virginia Medicaid

▾ View
Key: effective dates of 2014 on current rates, predating the 2026 restructuring by over a decade.
Vermont

Vermont AHS - Medicaid Director

▾ View
All four rates are below Medicare benchmarks.
Washington

WA State Health Care Authority - Director

▾ View
Contact: [email protected].
Wisconsin

Wisconsin DHS - Medicaid Director

▾ View
Adjust bracketed fields before sending.
West Virginia

West Virginia DHHR - Commissioner

▾ View
Contact: [email protected].
Wyoming

Wyoming DOH - Medicaid Director

▾ View
Key: 77402 effective date of 1/1/2017 predates the 2026 restructuring by nearly a decade.
Ongoing Updates
Jump to: Training ↓

Developments as They Emerge

Sep 2026
Comprehensive 40+ State Rate Comparison Published

Ron completed a detailed, state-by-state Medicaid vs. Medicare comparison covering 40+ states and DC. The analysis sources each rate from the state’s official fee schedule portal and pairs it against locality-adjusted Medicare benchmarks. Findings include Medicaid-as-a-percentage-of-Medicare ratios ranging from 8% to over 800%, complexity inversions in at least seven states, and rates predating the CY2026 restructuring by years or decades.

Sep 2026
Connecticut Enacts Major Rate Increases Effective 7/1/2026

Connecticut confirmed substantial mid-year corrections: 77407 increased from $77.15 to $250.57 (+225%) and 77412 from $90.87 to $358.52 (+295%). The 77387 technical component was dropped from the schedule, mirroring Medicare’s CY2026 bundling policy.

Sep 2026
New Jersey Proposes Significant Rate Increases (Pending CMS Approval)

NJ’s August 2026 proposed fee schedule shows increases: 77402 from $21 to $42.62, 77407 from $21 to $160.79, and 77412 from $41 to $230.08. All three delivery codes now land at approximately 44.8% of the Newark Medicare benchmark. These remain proposed pending CMS approval.

Sep 2026
North Dakota Confirmed as Model State

North Dakota maintains rates at approximately 112% of Medicare across all four codes, reflecting a coherent annual update process tied to current Medicare RVUs with a 2% inflationary increase.

Sep 2026
Missouri Delivery Codes Confirmed “Noncovered” Since 1992

Missouri’s MO HealthNet fee schedule shows 77402, 77407, and 77412 as “Noncovered” with a rate effective date of 1/1/1992. By contrast, 77387 is properly covered effective 1/1/2026.

May 2026
Formal Letters Submitted to 35 State Medicaid Agencies

Ron submitted formal outreach letters to Medicaid agency leadership in 35 states documenting rate disparities and requesting immediate fee schedule review. Letters are available in the advocacy section above.

May 2026
Oregon Confirms Missing Codes Now Payable — Retroactive to 1/1/26

Oregon Health Authority confirmed that CPT codes 77402 and 77407 were unintentionally omitted. Rates of $64.83 (77402) and $258.88 (77407) are now payable retroactive to January 1, 2026.

May 2026
South Dakota Commended — Rates at or Above Medicare

Ron submitted a formal commendation letter recognizing South Dakota’s rates as meeting or exceeding Medicare benchmarks across all four codes.

Apr 2026
California: $0 Reimbursement for IGRT Confirmed

Medi-Cal confirmed as reimbursing $0 for CPT code 77387. Representatives indicated correction may not occur until 2027.

Jan 2026
2026 Procedure Code Transition Takes Effect

Radiation oncology treatment delivery codes consolidated under 77402, 77407, and 77412; image guidance consolidated under 77387. New definitions required payers to rebuild fee schedules — a transition many have not completed.

Education

Radiation Oncology Coding & Billing Training

RCCS Education

Radiation Oncology Coding & Billing Essentials

Major changes to radiation oncology coding and payment policies took effect January 1, 2026. RCCS offers live virtual seminars focused on correct coding for external beam procedures — 2D, electron, 3D, and IMRT — with clinically relevant examples, payer guidance, compliance review, and NCCI edit analysis. Each participant receives a copy of the 2026 Navigator® for Radiation Oncology (digital eNav®).
View Schedule →

RCCS provides oncology coding, compliance consulting, and revenue cycle management services nationwide. This resource is maintained by RCCS in support of Ron DiGiaimo’s ongoing advocacy on radiation oncology reimbursement.

About RCCS →
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