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Billing code 974 · Hospital inpatient

974 Medicaid reimbursement rate by state (2026)

Inpatient DRG pricing input (outlier, cost ratio, stay). Medicaid pays a median of $3.36 for 974 across 8 states, from $2.15 in Iowa to $1,836.97 in New Hampshire.

Data as of Oct 5, 20268 statesEvery rate links to its official source

States publishing
8
National median
$3.36units vary by state
Lowest
$2.15Iowa
Highest
$1,836.97New Hampshire
Answer

What does Medicaid pay for 974?

8 state Medicaid programs publish a fee-for-service rate for 974. The national median is $3.36 (units differ between states). New Hampshire pays the most, $1,836.97, and Iowa the least, $2.15, a 854.8x spread.

State ranking

974 rate by state: highest, middle and lowest

One like-for-like fee-for-service rate per state, ranked. The workspace lists all 8 states with every variant, modifier and effective date.

#StateMedicaid rateUnitPer hourManaged-care plans% of Medicare
1New Hampshire Source · since 2025-10-01$1,836.97——Plans must pay at least this—
2Kansas Source · since 2023-01-01$78.00——Plans must pay at least this—
3North Carolina Source · since 2026-10-01$7.50——Plans must pay at least this—
7Vermont Source · since 2025-10-01$2.18——Not classified—
8Iowa Source · since 2024-10-01$2.15——Plans must pay at least this—
See all 8 states for 974 — start free

3 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.

  • Source for every rate
  • Full rate history
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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 974 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 974, 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. 3 of the 8 states list more than one rate for 974, 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 8 states, 1 publish 974 per weights - 10% cap applied, and 7 schedules print no unit at all (a flat amount per service).
  • Per hour. 974 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 974, 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 974 rates differ between states

Published rates for 974 run from $2.15 in Iowa to $1,836.97 in New Hampshire, a 854.8x gap in the same unit. Half the states pay more than the median of $3.36 and half pay less. The usual reasons for a spread like this in hospital inpatient rates:

  • Base rates are often hospital-specific, adjusted for wages, teaching and other factors, so the same weight produces a different payment at each hospital.
  • Some states still pay certain hospitals or stays per day instead of per discharge.
  • States use different inpatient grouper systems, so a diagnosis-related group weight in one state is not comparable with a weight from another grouper.

Timing matters too. 2 states set the current rate for 974 in 2026 or later. 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 974

Most Medicaid members are in managed-care plans, and plans don't publish their provider fee schedules. For 974, the public signal is the rule each state sets for its plans, recorded on each rate above.

In 5 states, the published rate binds plans: a floor, a pass-through or a state-set rate. In 1 state, plans negotiate and the published rate is a benchmark or out-of-network default. The rule for the remaining 2 states is not classified yet.

  • Plans must pay at least the published rate (5 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 negotiate; the published rate applies out of network (1 state). 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.

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 New Hampshire managed care.

Billing

Units and billing for 974

974 is a inpatient DRG in the hospital inpatient line, billed mostly by hospitals. Inpatient stays are paid per discharge: a diagnosis-related group weight multiplied by a hospital base rate, with outlier payments for unusually costly stays. A value on this page can therefore be a weight or a pricing input, not dollars.

A value here may be a relative weight, an average length of stay, an outlier threshold or another pricing input. The payment is the weight multiplied by the hospital's base rate.

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 974?

It depends on the state. Of the 8 states with a published fee-for-service rate, the median is $3.36. New Hampshire pays the most ($1,836.97) and Iowa the least ($2.15).

Which state pays the highest Medicaid rate for 974?

New Hampshire, at $1,836.97, effective 2025-10-01.

Which state pays the lowest Medicaid rate for 974?

Iowa, at $2.15, effective 2024-10-01.

What unit is 974 billed in?

Of the 8 states, 1 publish 974 per weights - 10% cap applied, and 7 schedules print no unit at all (a flat amount per service).

Do managed-care plans pay the same rate for 974?

Not necessarily. In 5 states, the published rate binds plans: a floor, a pass-through or a state-set rate. In 1 state, plans negotiate and the published rate is a benchmark or out-of-network default. The rule for the remaining 2 states is not classified yet. Each rule is cited to the plan contract, statute or notice in the workspace.