CMS finalized its 2027 Medicare physician fee schedule Nov. 4, boosting the value of psychiatric collaborative care services and extending higher valuations for timed behavioral health services to tobacco cessation and substance use intervention services.
The final rule takes effect Jan. 1, 2027. Here are four provisions for behavioral health leaders to know:
1. Collaborative care: CMS is increasing work relative value units for Psychiatric Collaborative Care Model services and updating clinical labor rates for the behavioral health care manager. The agency first created separate collaborative care payment in 2017 and last raised its work RVUs in 2021. The American Psychiatric Association applauded CMS for increasing Medicare payment to support the Psychiatric Collaborative Care Model.
2. Timed behavioral health services: The 2024 final rule began a four-year phase-in of higher work RVUs for psychotherapy codes. For 2027, the final year of that transition, CMS will also apply the increase to smoking and tobacco use cessation services and to structured assessment, brief intervention and referral to treatment services.
2. Rural and safety-net access: To implement Section 6209(c) of the Consolidated Appropriations Act, 2026, CMS will not apply in-person visit requirements to mental health visits at rural health clinics and federally qualified health centers through Dec. 31, 2027.
4. Shared medical appointments: As part of its chronic disease policies, CMS established separate coding and payment for group visits, plus an add-on code for additional time. The agency said the format may help address social isolation and loneliness for some beneficiaries.
The behavioral health gains arrive as overall rates fall. The conversion factor for qualifying alternative payment model participants drops 1.83% to $32.95, and the nonqualifying factor drops 2.31% to $32.63, as a one-year 2.5% increase for 2026 expires.
At the Becker's Fall Behavioral Health Summit, taking place November 4–5 in Chicago, behavioral health leaders and executives will explore strategies for expanding access to care, integrating services, addressing workforce challenges and leveraging innovation to improve outcomes across the behavioral health continuum. Apply for complimentary registration now.
