Picture
Powered by R3
RCCS
  • Solutions
    • Client Resource Center
    • Revenue Cycle
    • Specialty Consulting
    • Analysis & Review
    • Education & Resources
    • Coding Strategies®
    • Custom Services
  • Newsroom
  • Events
    • All Events
    • CROWN® Year-Round Seminar Series
  • Store
  • About Us
    • Company Info
    • Careers
  • Log In
    • Online Course/CEUs
    • eNav® login
    • Client Portal Login
Radiation Oncology Fee Schedule Resource | Ron DiGiaimo / RCCS
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: May 2026 Codes: 77387 • 77402 • 77407 • 77412 15 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.
✓ 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. Oregon acknowledged Ron’s concerns about rate adequacy and will note them for the next rate-change review cycle.

Ron’s Perspective

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.

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

What We Know — and What Is Still Evolving

Confirmed
  • January 1, 2026 coding transition consolidated treatment delivery into 77402, 77407, and 77412; image guidance into 77387
  • Code definitions changed materially — payers were required to rebuild fee schedules, update billing systems, and retest claims processing
  • Multiple Medicaid programs have not completed this update; several states retain rates set years before the new code structure
  • California Medi-Cal reimburses $0 for 77387; New Mexico also $0; Indiana lists $0 for 77387 and does not list 77412
  • Hawaii does not list 77387 at all; New Jersey reimburses only $21–$41 for technical components; Oregon confirmed 77402 and 77407 were missing entirely
  • Ron has submitted formal outreach letters to Medicaid agencies in 15 states
Still Developing
  • California indicating correction timeline extending to 2027
  • TX: 77402, 77407, 77412 listed as Not Payable for physicians; 77387 categorized by type of service
  • MA: all four codes “Individual Consideration” — no predictable payment floor
  • NJ: rates listed “By Report” for 77387; technical-only payments of $21–$41 for delivery codes
  • IN: 77412 not listed; 77387 at $0; 77407 same rate as 77402
  • NH: 77412 ($48.17) lower than 77402 ($63.32) — inverted rate structure suggesting incomplete update
  • NY and SC: Level 3 rate lower than Level 2 rate — similar inversion issue
  • Oregon: rates now payable but remain below Medicare benchmarks

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

State-Level Data

Medicaid vs. Medicare: Rate Comparison by State

The table below documents current reimbursement rates for the primary radiation oncology codes under state Medicaid programs, compared against Medicare benchmarks effective January 1, 2026.

State / Program 77387 (IGRT) 77402 (Level 1) 77407 (Level 2) 77412 (Level 3)
Alabama$24.07$50.18$189.42$272.53
California (Medi-Cal)$0$42.40$38.77$43.20
Florida$12.19 (PC)--$149.00$158.42
HawaiiNot listed$58.71$68.94$76.99
Indiana$0$101.97$101.97Not listed
MassachusettsAll codes: “Individual Consideration” — no fixed rate
Michigan$23.22 (Prof)Delivery code rates not confirmed in outreach letter
New Hampshire--$63.32$74.72$48.17
New JerseyBy Report$21 (TC only)$21 (TC only)$41 (TC only)
New Mexico$0--$92.24$102.63
New York$71.10 Global / $10.08 PC$98.20$166.27$151.45
Oregon ✓$29.52$64.83 ↑$258.88 ↑$319.07
South Carolina$82.57 / $24.77 PC$98.04$154.02$149.12
Texas$16.31 (PC) / $44.11 (TC)77402, 77407, 77412 listed as Not Payable for physicians
Virginia----$219.55$208.42
Washington$21.12 (PFS) / Bundled TC$50.09$188.97$270.46
Medicare PFS (non-facility)$36.74 (PC)$79.49$317.64$391.46
Medicare HOPPS--$104.24$394.05$564.51

Oregon (green) reflects advocacy win: codes 77402 and 77407 added to fee schedule, payable retroactive to 1/1/26. Virginia rates carry effective dates of 2014–9999. NH, NY, and SC show inverted rate structures (higher-complexity code pays less than lower-complexity). Commercial payers often reimburse 77387 at $100–$130 (professional component).

Impact Assessment

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

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. Below are ways to stay current and participate.

Follow Ron on LinkedIn

Ron is posting ongoing developments, state-specific findings, and calls to action as this issue evolves. Following him is the fastest way to stay current between updates to this page.

Follow on LinkedIn →

Watch This Page

This resource is updated as new state data, agency responses, and advocacy materials become available. Bookmark it as the centralized reference for this campaign and share the URL with colleagues and organizations that 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 15 states are available below, alphabetized by state.

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.

ron@r3sourcehealth.com →
Advocacy Letters

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. Alphabetized by state.

AL FL HI IN MA MI NH NJ NM NY OR ✓ SC TX VA WA
Alabama

Alabama Medicaid Agency — Commissioner

Adjust bracketed fields before sending. Verify the current Alabama Medicaid commissioner before submitting.
Florida

Florida Agency for Health Care Administration — Deputy Secretary for Medicaid

Adjust bracketed fields before sending.
Hawaii

Hawaii Department of Human Services — Med-QUEST Division Administrator

Adjust bracketed fields before sending.
Indiana

Indiana Family and Social Services Administration — Director of Medicaid

Adjust bracketed fields before sending. Explicitly raising the absence of 77412 and the identical rates for 77402/77407 strengthens the letter.
Massachusetts

MassHealth — Medicaid Director

Verify the current MassHealth director name and contact before submitting. The "Individual Consideration" structure is the primary concern to emphasize.
Michigan

Michigan Department of Health and Human Services — Medicaid Director

Adjust bracketed fields before sending. Confirm current Michigan Medicaid delivery code rates before submitting.
New Hampshire

New Hampshire Department of Health & Human Services — Medicaid Director

Adjust bracketed fields before sending. NH's inverted rate structure (Level 3 pays less than Level 1) is a strong additional argument — highlight it prominently.
New Jersey

NJ Division of Medical Assistance & Health Services — Assistant Commissioner

Adjust bracketed fields before sending.
New Mexico

New Mexico Health Care Authority — Medicaid Director

Adjust bracketed fields before sending.
New York

New York Department of Health — Medicaid Director / Deputy Commissioner

Adjust bracketed fields before sending. NY's inverted rate structure (Level 3 lower than Level 2) is a useful additional argument for rate correction.
Oregon ✓ Win

Oregon Health Authority — Medicaid Director

Oregon confirmed 77402 and 77407 are now payable retroactive to 1/1/26 — this updated letter acknowledges that win while continuing to advocate for rate adequacy. Adjust bracketed fields before sending.
South Carolina

South Carolina Healthy Connections Medicaid — Medicaid Director

Adjust bracketed fields before sending. SC's inverted rate structure (Level 3 lower than Level 2) is a useful additional argument.
Texas

Texas Health and Human Services Commission — Medicaid Director

Verify the current Texas Medicaid director before submitting. The "Not Payable for physician services" designation for delivery codes is the primary concern to lead with.
Virginia

Virginia Department of Medical Assistance Services — Director of Virginia Medicaid

Adjust bracketed fields before sending. Virginia's 2014 effective date on current rates is a strong argument — raise it explicitly.
Washington

Washington State Health Care Authority — Director

Adjust bracketed fields before sending.
Ongoing Updates

Developments as They Emerge

May 2026
National
Resource Center Expanded — Now Covering 15 States

Ron expands this centralized resource, supported by RCCS, adding Washington, Oregon, New York, Hawaii, South Carolina, New Hampshire, New Jersey, Michigan, and Indiana to the documented state list.

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

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. Oregon acknowledged the rates remain low and will note Ron's concerns for the next rate-change review cycle.

May 2026
Washington
Formal Letter Submitted to WA State Health Care Authority

Ron submitted a formal letter to Director Trinity Wilson documenting rates of $21.12 (77387), $50.09 (77402), $188.97 (77407), and $270.46 (77412) against Medicare benchmarks, requesting immediate review.

May 2026
Multi-State
New Outreach Letters: HI, IN, MI, NH, NJ, NY, SC

Ron submitted formal outreach letters to Medicaid agency leadership in Hawaii, Indiana, Michigan, New Hampshire, New Jersey, New York, and South Carolina documenting rate disparities and requesting immediate fee schedule review.

Apr 2026
Multi-State
Initial Formal Outreach Letters Submitted

Ron submitted formal letters to Medicaid agency leadership in Florida, New Mexico, Virginia, and Alabama documenting rate disparities and requesting immediate fee schedule review.

Apr 2026
California
Medi-Cal: $0 Reimbursement for IGRT Confirmed

California Medi-Cal confirmed as reimbursing $0 for CPT code 77387. Medi-Cal representatives indicated correction may not occur until 2027 — a timeline Ron has flagged as untenable for affected practices.

Apr 2026
New Mexico
Zero Reimbursement for IGRT; Delivery Rates Far Below Medicare

New Mexico Medicaid lists $0 for 77387 and rates of $92.24 and $102.63 for 77407 and 77412, compared to Medicare benchmarks of $317–$394 and $391–$565.

Apr 2026
Texas
Delivery Codes Listed as Not Payable for Physicians

Texas Medicaid lists CPT codes 77402, 77407, and 77412 as not payable for physician services. IGRT (77387) is categorized by type of service rather than procedure code, creating billing confusion.

Apr 2026
Massachusetts
All Key Codes Listed as “Individual Consideration”

Massachusetts Medicaid has no fixed payment rates for 77387, 77402, 77407, or 77412. Without active provider engagement, the structure creates meaningful risk of non-payment.

Jan 2026
National
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 and update billing systems — a transition many have not completed.

Perspective

From the Desk of Ron DiGiaimo

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 • ron@r3sourcehealth.com • LinkedIn

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 →
DO YOU HAVE A QUESTION?
​WE HAVE AN ANSWER.
Let's Connect
x
Office: 877.626.3464
FOLLOW THE LATEST INDUSTRY TRENDS
​ 

subscribe
ARE YOU READY TO DISCOVER HOW RCCS CAN IMPROVE YOUR BOTTOM LINE?
RCCS client specialist Maddy Johnston
Meet Maddy. She's your dedicated RCCS specialist ready to hear about your current challenges and assemble the right team of RCCS pros to assist!

Get in touch today!
​RCCS provides nationwide medical coding, compliance consulting, and revenue cycle management services for hospitals, physician practices, and specialty clinics.
©2025 Revenue Cycle Coding Strategies. All rights reserved.
PRIVACY POLICY
  • Solutions
    • Client Resource Center
    • Revenue Cycle
    • Specialty Consulting
    • Analysis & Review
    • Education & Resources
    • Coding Strategies®
    • Custom Services
  • Newsroom
  • Events
    • All Events
    • CROWN® Year-Round Seminar Series
  • Store
  • About Us
    • Company Info
    • Careers
  • Log In
    • Online Course/CEUs
    • eNav® login
    • Client Portal Login