T2040 Medicaid reimbursement rate by state (2026)

• Order. States are listed from the highest published rate to the lowest. No single unit is shared by 8 or more states for T2040, 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. 12 of the 15 states list more than one rate for T2040, 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 15 states, 7 publish T2040 per month, 3 per 15 min, 2 per hour and 3 in other units.
• Per hour. Time-based units are converted to an hour of service (four 15-minute units make an hour). 5 of the 15 states bill T2040 by time.
• 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 T2040, 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.

Published rates for T2040 run from $36.75 in Wisconsin to $187.38 in Montana, a 5.1x gap in the same unit. Half the states pay more than the median of $95.24 and half pay less. The usual reasons for a spread like this in other home & community services rates:

• Some services are paid per 15 minutes in one state and per day or per month in another.
• Case management may be paid as a monthly rate, a per-contact rate or in 15-minute units.
• Home and community-based services are often paid under waivers, and each waiver can set its own rate for the same service.

Timing matters too. 4 states set the current rate for T2040 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.

What a plan pays for T2040 is negotiated privately, but the state decides how much room there is to negotiate. Here is how the rules break down across the 15 states.

In 1 state, 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. In 9 states, the service is paid outside the plans or through a state-directed payment. The rule for the remaining 4 states is not classified yet.

• Paid by the state, outside the plans (9 states). Bill the state's Medicaid program, not the plan, at the published rate. There is no plan contract to negotiate for this service.
• 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.
• Plans are expected to pay at least the published rate (1 state). Treat the published rate as a strong anchor, and confirm the minimum is written into your own plan agreement.

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.

T2040 is a HCPCS Level II state Medicaid agency code in the other home & community services line, billed mostly by case management agencies, adult day centers, respite providers and other home and community-based services. T codes were created for state Medicaid agencies, for services such as personal care, private duty nursing, case management and waiver services. Each state defines how the code is used and paid, so units vary from 15 minutes to a month.

Units range from 15 minutes to a day or a month, so a per-unit comparison only holds when the states use the same unit.

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.