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Billing code J7606 · Pharmacy

J7606 Medicaid reimbursement rate by state (2026)

Formoterol fumarate, inhalation solution. Medicaid pays a median of $1.55 for J7606 across 30 states, from $1.33 in Colorado to $16.26 in Iowa.

Data as of Oct 5, 202630 statesEvery rate links to its official source

States publishing
30
National median
$1.55units vary by state
Lowest
$1.33Colorado
Highest
$16.26Iowa
Answer

What does Medicaid pay for J7606?

30 state Medicaid programs publish a fee-for-service rate for J7606. The national median is $1.55 (units differ between states). Iowa pays the most, $16.26, and Colorado the least, $1.33, a 12.2x spread.

State ranking

J7606 rate by state: highest, middle and lowest

One like-for-like fee-for-service rate per state, ranked. The workspace lists all 30 states with every variant, modifier and effective date.

#StateMedicaid rateUnitPer hourManaged-care plans% of Medicare
1Iowa Source · since 2024-03-01$16.26——Plans must pay at least this—
2Wyoming Source · since 2022-10-01$6.78——Not classified—
3New Jersey Source · since 2025-01-01$5.60——Not classified—
15Montana Source · since 2026-07-01$1.55——Not classified—
16California Source · since 2026-07-01$1.55——Plans negotiate; applies out of network—
17Arizona Source · since 2026-08-01$1.55——Plans negotiate; applies out of network—
29South Dakota Source · since 2026-10-01$1.37——Not classified—
30Colorado Source · since 2026-10-01$1.33——Not classified—
See all 30 states for J7606 — start free

22 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
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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 J7606 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 J7606, 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. 8 of the 30 states list more than one rate for J7606, 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 30 states, 1 publish J7606 per unit and 1 per 20 mcg, and 28 schedules print no unit at all (a flat amount per service).
  • Per hour. J7606 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 J7606, 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 J7606 rates differ between states

Published rates for J7606 run from $1.33 in Colorado to $16.26 in Iowa, a 12.2x gap in the same unit. Half the states pay more than the median of $1.55 and half pay less. The usual reasons for a spread like this in pharmacy rates:

  • States differ in whether they pay a fixed fee, a percentage of a benchmark or invoice cost.
  • Drugs given in a practice or clinic are commonly priced from a benchmark such as average sales price or wholesale acquisition cost, which moves every quarter.
  • For children, many vaccines are supplied through the federal Vaccines for Children program, so the Medicaid payment can be for administration only.

Timing matters too. 25 states set the current rate for J7606 in 2026 or later, while 1 state 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 J7606

What a plan pays for J7606 is negotiated privately, but the state decides how much room there is to negotiate. Here is how the rules break down across the 30 states.

In 4 states, the published rate binds plans: a floor, a pass-through or a state-set rate. In 13 states, plans negotiate and the published rate is a benchmark or out-of-network default. The rule for the remaining 13 states is not classified yet.

  • Plans negotiate; the published rate applies out of network (13 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 (4 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.

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 Iowa managed care.

Billing

Units and billing for J7606

J7606 is a HCPCS Level II drug code in the pharmacy line, billed mostly by practices and clinics that administer vaccines and drugs. J codes cover drugs that are not self-administered. One unit is the dose stated in the code, so a claim for a larger dose bills several units.

Many states require the National Drug Code (NDC) on the claim alongside the billing code. Drug codes are billed in units of the dose stated in the code, so a larger dose bills more units.

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 J7606?

It depends on the state. Of the 30 states with a published fee-for-service rate, the median is $1.55. Iowa pays the most ($16.26) and Colorado the least ($1.33).

Which state pays the highest Medicaid rate for J7606?

Iowa, at $16.26, effective 2024-03-01.

Which state pays the lowest Medicaid rate for J7606?

Colorado, at $1.33, effective 2026-10-01.

What unit is J7606 billed in?

Of the 30 states, 1 publish J7606 per unit and 1 per 20 mcg, and 28 schedules print no unit at all (a flat amount per service).

Do managed-care plans pay the same rate for J7606?

Not necessarily. In 4 states, the published rate binds plans: a floor, a pass-through or a state-set rate. In 13 states, plans negotiate and the published rate is a benchmark or out-of-network default. The rule for the remaining 13 states is not classified yet. Each rule is cited to the plan contract, statute or notice in the workspace.