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Billing code 88741 · Lab & pathology

88741 Medicaid reimbursement rate by state (2026)

Clinical lab tests. Medicaid pays a median of $7.76 for 88741 across 43 states, from $3.59 in Nevada to $9.37 in Montana.

Data as of Oct 5, 202643 statesEvery rate links to its official source

States publishing
43
National median
$7.76units vary by state
Lowest
$3.59Nevada
Highest
$9.37Montana
Answer

What does Medicaid pay for 88741?

43 state Medicaid programs publish a fee-for-service rate for 88741. The national median is $7.76 (units differ between states). Montana pays the most, $9.37, and Nevada the least, $3.59, a 2.6x spread.

State ranking

88741 rate by state: highest, middle and lowest

One like-for-like fee-for-service rate per state, ranked. The workspace lists all 43 states with every variant, modifier and effective date.

#StateMedicaid rateUnitPer hourManaged-care plans% of Medicare
1Montana Source · since 2018-07-01$9.37——Not classified—
2Nebraska Source · since 2026-07-01$9.37——Plans negotiate; applies out of network—
3Indiana Source · since 2024-01-01$9.37unit—Plans must pay at least this—
21Colorado Source · since 2026-07-01$7.81——Not classified—
22Michigan Source · since 2023-01-01$7.76——Plans negotiate; applies out of network—
23New Jersey Source · since 2025-01-01$7.50——Not classified—
42Rhode Island Source · since 2009-01-01$4.40——Plans negotiate; applies out of network—
43Nevada Source · since 2024-01-01$3.59——Plans negotiate; applies out of network—
See all 43 states for 88741 — start free

35 more states, with every modifier and provider-type variant, rate history and the plan rule in each state. 14-day free trial, no credit card.

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Rates are per the unit shown for each state; units can differ between states. Medicare amounts are computed from the CMS relative value file and locality cost indices; states with several Medicare localities show a range. Confirm rates with the payer before billing.

Track 88741 in your states. Get an alert when any state changes it, with every variant and the managed-care rule.
Guide

How to read this table

  • Order. States are listed from the highest published rate to the lowest. No single unit is shared by 8 or more states for 88741, so the order is by published amount and is not a like-for-like rank.
  • Medicaid rate. The most the state's fee-for-service program pays for one unit, as published. 16 of the 43 states list more than one rate for 88741, by modifier, provider type or setting; the table shows the one that matches the provider level and setting used across states, without add-ons.
  • Unit. Of the 43 states, 1 publish 88741 per unit, and 42 schedules print no unit at all (a flat amount per service).
  • Per hour. 88741 is not billed in time units in these states, so no hourly figure is shown.
  • Managed-care plans. The rule the state sets for its plans on this rate. What each rule means is explained below.
  • % of Medicare. No Medicare physician fee schedule amount is on file for 88741, so there is no percentage.
  • Source and date. Each Source link opens the state's own document; “since” is the date the rate took effect.
Context

Why 88741 rates differ between states

Published rates for 88741 run from $3.59 in Nevada to $9.37 in Montana, a 2.6x gap in the same unit. Half the states pay more than the median of $7.76 and half pay less. The usual reasons for a spread like this in lab & pathology rates:

  • Some states bundle certain tests into panels or into facility payments, so the separately billable amount differs.
  • Many states set clinical laboratory fees with reference to the Medicare Clinical Laboratory Fee Schedule, but at different percentages and from different update years.
  • Pathology services with an interpretation have professional and technical components that states price separately.

Timing matters too. 10 states set the current rate for 88741 in 2026 or later, while 16 states still pay a rate that took effect in 2022 or earlier. A state that has not updated its rate in years will drift down the ranking as others raise theirs.

Managed care

What managed-care plans pay for 88741

What a plan pays for 88741 is negotiated privately, but the state decides how much room there is to negotiate. Here is how the rules break down across the 43 states.

In 8 states, the published rate binds plans: a floor, a pass-through or a state-set rate. In 21 states, plans negotiate and the published rate is a benchmark or out-of-network default (or a ceiling). The rule for the remaining 14 states is not classified yet.

  • Plans negotiate; the published rate applies out of network (20 states). In-network rates can be above or below the published rate. The published rate is the benchmark both sides know, and the fallback if no contract is signed.
  • Plans must pay at least the published rate (8 states). The published rate is your floor. Negotiate up from it, and if a plan pays less, the contract provision is the basis for a payment dispute.
  • Plans may pay no more than the published rate (1 state). Expect offers at or below the published rate. Higher payment would have to come from something other than the base rate, such as a quality or value-based arrangement.

Plan-negotiated rates are never estimated here. To see the rule and its citation for a particular state, open that state's managed-care page, for example Montana managed care.

Billing

Units and billing for 88741

88741 is a CPT pathology and laboratory code in the lab & pathology line, billed mostly by independent laboratories, hospital labs and pathology groups. Laboratory codes are paid per test; a panel is paid as one code, not as the sum of its tests. Pathology codes with an interpretation can be split into professional and technical components.

Pathology interpretation can be billed with modifier 26 when the laboratory and the pathologist bill separately. Laboratory tests are billed per test, and a panel is paid as a single code rather than as the sum of its component tests.

Before billing, confirm the rate, unit and any modifier with the state's current schedule or the plan: the amounts here are as published, not a guarantee of payment.

FAQ

Frequently asked questions

What does Medicaid pay for 88741?

It depends on the state. Of the 43 states with a published fee-for-service rate, the median is $7.76. Montana pays the most ($9.37) and Nevada the least ($3.59).

Which state pays the highest Medicaid rate for 88741?

Montana, at $9.37, effective 2018-07-01.

Which state pays the lowest Medicaid rate for 88741?

Nevada, at $3.59, effective 2024-01-01.

What unit is 88741 billed in?

Of the 43 states, 1 publish 88741 per unit, and 42 schedules print no unit at all (a flat amount per service).

Do managed-care plans pay the same rate for 88741?

Not necessarily. In 8 states, the published rate binds plans: a floor, a pass-through or a state-set rate. In 21 states, plans negotiate and the published rate is a benchmark or out-of-network default (or a ceiling). The rule for the remaining 14 states is not classified yet. Each rule is cited to the plan contract, statute or notice in the workspace.