The bill improves access to psychologist care and boosts provider reimbursement for Medicare patients, but increases Medicare spending that may strain trust funds or require offsets that could reduce funding for other services.
Medicare beneficiaries who need psychologist services will have improved access to care because Medicare payment rates for psychologist services increase starting Jan 1, 2027, making it more feasible for beneficiaries (including those with chronic conditions and mental-health needs) to find providers who accept Medicare.
Psychologists and outpatient providers (including hospitals and health systems) will receive higher reimbursement, reducing financial pressure on these providers and increasing the likelihood they will accept and continue serving Medicare patients.
Higher Medicare payments for psychologist services will increase program spending and could strain Medicare trust funds or create pressure for offsetting budgetary measures, affecting taxpayers and program solvency.
If the payment increase is not budget-neutral, it may necessitate cuts or reduced funding for other Medicare services or require policy trade-offs that could negatively affect other beneficiaries or services.
Based on analysis of 2 sections of legislative text.
Raises Medicare payments for certain psychologist services to 85% of the physician fee schedule (from 75% of prior psychologist amount).
Increases Medicare payment rates for certain psychologist services by changing the payment reference and raising the payment percentage. For items and services furnished on or after January 1, 2027, payments tied to psychologist-related provisions are calculated as 85% of the Medicare physician fee schedule amount rather than 75% of the previously used psychologist amount, raising provider rates for the affected services.
Official title: To amend title XVIII of the Social Security Act to improve access to mental health services under the Medicare program.
Introduced March 25, 2026 by Brian K. Fitzpatrick · Last progress March 25, 2026