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.
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.
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.
“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
- 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).
- 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.
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).
| State | 77387 (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 |
| Colorado | Pending | Pending | Pending | Pending |
| Connecticut | $28.54 | $66.43 | $250.57 ↑ | $358.52 ↑ |
| Delaware | Not 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 |
| Georgia | Not listed | $60.65 | $71.21 | $79.51 |
| Hawaii | Not 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 |
| Indiana | Pending | Pending | Pending | Pending |
| 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 |
| Maine | Not listed | $54.58 | $206.03 | $294.94 |
| Maryland | $38.29 | $85.35 | $120.70 * | $139.45 * |
| Massachusetts | All 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 | $29.71 | Noncovered | Noncovered | Noncovered |
| Montana | $49.91 (26) | Not listed | Not listed | Not 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 Jersey | By 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 Island | Not 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 |
| Tennessee | No FFS physician fee schedule — TennCare is 100% managed care | |||
| Texas | $60.68 | Delivery codes: Not Payable for physicians (TC only: $69/$260/$373 ages 0–20) | ||
| Utah | $34.80 | Non-covered | Non-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).
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.
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.
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.
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.
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.
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.
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] →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.
AlabamaAlabama Medicaid Agency - Commissioner
▾ View
Alabama Medicaid Agency - Commissioner
ArkansasArkansas DHS - Deputy Secretary and Medicaid Director
▾ View
Arkansas DHS - Deputy Secretary and Medicaid Director
ArizonaArizona AHCCCS - Interim Medicaid Director
▾ View
Arizona AHCCCS - Interim Medicaid Director
ColoradoHealth First Colorado - Medicaid Director
▾ View
Health First Colorado - Medicaid Director
ConnecticutCT Dept. of Social Services - Director, Div. of Health Services
▾ View
CT Dept. of Social Services - Director, Div. of Health Services
Washington DCDC Medicaid - Senior Deputy Director
▾ View
DC Medicaid - Senior Deputy Director
FloridaFlorida AHCA - Deputy Secretary for Medicaid
▾ View
Florida AHCA - Deputy Secretary for Medicaid
GeorgiaGeorgia DCH - Exec. Director, Medical Assistance Plans
▾ View
Georgia DCH - Exec. Director, Medical Assistance Plans
HawaiiHawaii DHS - Med-QUEST Division Administrator
▾ View
Hawaii DHS - Med-QUEST Division Administrator
IdahoIdaho DHW - Division Administrator for Medicaid
▾ View
Idaho DHW - Division Administrator for Medicaid
IndianaIndiana FSSA - Director of Medicaid
▾ View
Indiana FSSA - Director of Medicaid
KansasKanCare - Medicaid Director
▾ View
KanCare - Medicaid Director
LouisianaLouisiana LDH - Medicaid Executive Director
▾ View
Louisiana LDH - Medicaid Executive Director
MassachusettsMassHealth - Medicaid Director
▾ View
MassHealth - Medicaid Director
MaineMaine DHHS - Director, Office of MaineCare Services
▾ View
Maine DHHS - Director, Office of MaineCare Services
MichiganMichigan MDHHS - Medicaid Director
▾ View
Michigan MDHHS - Medicaid Director
MontanaMontana DPHHS - Medical Director
▾ View
Montana DPHHS - Medical Director
North CarolinaNC Medicaid - Interim Deputy Secretary
▾ View
NC Medicaid - Interim Deputy Secretary
NebraskaNebraska DHHS - Director of Medicaid
▾ View
Nebraska DHHS - Director of Medicaid
New HampshireNew Hampshire DHHS - Medicaid Director
▾ View
New Hampshire DHHS - Medicaid Director
New JerseyNJ DMAHS - Assistant Commissioner
▾ View
NJ DMAHS - Assistant Commissioner
New MexicoNew Mexico HCA - Medicaid Director
▾ View
New Mexico HCA - Medicaid Director
New YorkNew York DOH - Medicaid Director
▾ View
New York DOH - Medicaid Director
Oregon ✓ WinOregon Health Authority - Medicaid Director
▾ View
Oregon Health Authority - Medicaid Director
Rhode IslandRhode Island EOHHS - Asst. Secretary and Medicaid Director
▾ View
Rhode Island EOHHS - Asst. Secretary and Medicaid Director
South CarolinaSC Healthy Connections Medicaid - Medicaid Director
▾ View
SC Healthy Connections Medicaid - Medicaid Director
South Dakota ✓ WinSouth Dakota DSS - Division Director
▾ View
South Dakota DSS - Division Director
TexasTexas HHSC - Medicaid Director
▾ View
Texas HHSC - Medicaid Director
UtahUtah DOH Medicaid - Medicaid Director
▾ View
Utah DOH Medicaid - Medicaid Director
VirginiaVirginia DMAS - Director of Virginia Medicaid
▾ View
Virginia DMAS - Director of Virginia Medicaid
VermontVermont AHS - Medicaid Director
▾ View
Vermont AHS - Medicaid Director
WashingtonWA State Health Care Authority - Director
▾ View
WA State Health Care Authority - Director
WisconsinWisconsin DHS - Medicaid Director
▾ View
Wisconsin DHS - Medicaid Director
West VirginiaWest Virginia DHHR - Commissioner
▾ View
West Virginia DHHR - Commissioner
WyomingWyoming DOH - Medicaid Director
▾ View
Wyoming DOH - Medicaid Director
Developments as They Emerge
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.
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.
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.
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.
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.
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.
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.
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.
California: $0 Reimbursement for IGRT Confirmed
Medi-Cal confirmed as reimbursing $0 for CPT code 77387. Representatives indicated correction may not occur until 2027.
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.