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H2035 Medicaid reimbursement rates by state

Alcohol and/or other drug treatment program, per hour. 6 state Medicaid programs publish a fee-for-service rate for H2035 at the physician psychologist level. Rates run from $53.64 in South Carolina to $841.34 in California, with a median of $59.51.

Data as of 2026-10-05. Every rate links to the official document it came from.

States publishing
6
Median rate
$59.51per hour
Highest
$841.34California
Medicare (non-facility)
—not on the physician fee schedule

H2035 rate in every state

One like-for-like fee-for-service rate per state, highest first. Units can differ between states; the per-hour column converts time-based units.

StateMedicaid rateUnitPer hourManaged-care plans% of MedicareSource
CaliforniaPhysician or licensed psychologist (incl. BCBA-D) · California Drug Medi-Cal Organized Delivery System (DHCS county fee schedule / interim rates)$841.34⚠ over 3× mediansince 2026-07-01hour$841.34Paid by the state, outside plans—Medi-Cal Behavioral Health Fee Schedules
MinnesotaAny qualified provider (rate does not vary by provider) · Minnesota Health Care Programs: Medical Assistance (fee-for-service)$72.11since 2024-03-05hour$72.11Plans must pass increases through—MHCP Fee Schedule (Wayback capture 20250
TexasAny qualified provider (rate does not vary by provider) · Texas Medicaid (fee-for-service, TMHP)$60.69since 2022-03-01hour$60.69Plans negotiate; applies out of network—TMHP Texas Medicaid Fee Schedule - Outpa
IndianaAny qualified provider (rate does not vary by provider) · Indiana Medicaid Rehabilitation Option (MRO) community mental health services$58.32since 2010-07-01hour$58.32Paid by the state, outside plans—IHCP Professional Fee Schedule (Last Upd
North CarolinaAny qualified provider (rate does not vary by provider) · North Carolina Medicaid Direct (fee-for-service)$56.85since 2025-10-01hour$56.85Plans negotiate; applies out of network—NC Medicaid fee schedule 'Enhanced Menta
South CarolinaAny qualified provider (rate does not vary by provider) · South Carolina Healthy Connections Medicaid (fee-for-service)$53.64since 2025-12-01hour$53.64Not classified—SCDHHS RBHS Substance Use Services Fee S

Rates marked ⚠ are more than three times the median for the same unit; they are published as shown but often reflect an office (non-facility) fee or a different scope of service. 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 with the CMS formula; states with several Medicare localities show a range. Confirm rates with the payer before billing.

Frequently asked questions

What does Medicaid pay for H2035?

It depends on the state. Of the 6 states with a published fee-for-service rate, the median is $59.51 per hour. California pays the most ($841.34 per hour) and South Carolina the least ($53.64 per hour).

Which state pays the highest Medicaid rate for H2035?

California, at $841.34 per hour ($841.34 per hour), effective 2026-07-01.

Do managed-care plans pay the same rate for H2035?

Not necessarily. Each state's plan contracts decide whether plans must pay at least the fee-for-service rate, pay a state-set rate, or negotiate their own. The table shows the rule for each state, cited to the contract or statute.

Related Behavioral health codes

Track H2035 in your statesYour codes on one rate card: every payer's rule, Medicare comparison, rank and rate changes.
Medicaid rates by state