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.
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.
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.
“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 →
What We Know — and What Is Still Evolving
- 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
- 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.
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 |
| Hawaii | Not listed | $58.71 | $68.94 | $76.99 |
| Indiana | $0 | $101.97 | $101.97 | Not listed |
| Massachusetts | All 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 Jersey | By 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).
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
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 →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.
Alabama Medicaid Agency — Commissioner
Florida Agency for Health Care Administration — Deputy Secretary for Medicaid
Hawaii Department of Human Services — Med-QUEST Division Administrator
Indiana Family and Social Services Administration — Director of Medicaid
MassHealth — Medicaid Director
Michigan Department of Health and Human Services — Medicaid Director
New Hampshire Department of Health & Human Services — Medicaid Director
NJ Division of Medical Assistance & Health Services — Assistant Commissioner
New Mexico Health Care Authority — Medicaid Director
New York Department of Health — Medicaid Director / Deputy Commissioner
Oregon Health Authority — Medicaid Director
South Carolina Healthy Connections Medicaid — Medicaid Director
Texas Health and Human Services Commission — Medicaid Director
Virginia Department of Medical Assistance Services — Director of Virginia Medicaid
Washington State Health Care Authority — Director
Developments as They Emerge
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
From the Desk of Ron DiGiaimo
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.