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Raising Medicare payments to psychologists aims to improve beneficiary access and provider revenue, but it increases federal spending and may still fall short of full parity so access gains could be limited.
Medicare beneficiaries (including patients with chronic conditions) may gain better access to psychologist services because Medicare payment rates for psychologists are raised to 85% of the physician fee schedule, making more providers likely to accept Medicare.
Psychologists and behavioral health providers will receive higher Medicare reimbursement, improving provider revenue and potentially expanding the availability of behavioral health services.
Medicare beneficiaries may still face limited access if the 85% payment rate remains meaningfully below physician rates, because some psychologists could continue to decline Medicare patients despite the increase.
Higher Medicare payments to psychologists will increase federal spending, which may add to Medicare program costs and could put pressure on taxpayers or other budget priorities.
Based on analysis of 2 sections of legislative text.
Raises Medicare payment reference for certain psychologist-related services from 75% to 85% of the physician fee schedule and corrects a reference.
Introduced March 25, 2026 by John A. Barrasso · Last progress March 25, 2026
Increases Medicare reimbursement for certain psychologist-related items and services by changing the payment reference from 75 percent of a prior amount to 85 percent of the physician fee schedule amount under the Medicare physician fee schedule. It also corrects a punctuation/reference in an existing subparagraph. The payment change and the technical correction apply to items and services furnished on or after January 1, 2027. The amendment updates the payment calculation used under the Social Security Act for these psychologist-related provisions, which will affect provider payments and Medicare spending for those services.