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394 Medicaid reimbursement rates by state

Inpatient DRG pricing input (outlier, cost ratio, stay). 5 state Medicaid programs publish a fee-for-service rate for 394. Rates run from $0.013 in Illinois to $2.90 in North Carolina, with a median of $0.0304.

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

States publishing
5
Median rate
$0.0304units vary by state
Highest
$2.90North Carolina
Medicare (non-facility)
—not on the physician fee schedule

394 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
North CarolinaAny qualified provider (rate does not vary by provider) · North Carolina Medicaid Direct (fee-for-service)$2.90since 2026-10-01——Plans must pay at least this—NC Medicaid fee schedule 'Grouper DRG We
New YorkAny qualified provider (rate does not vary by provider) · New York Medicaid (fee-for-service)$0.0654since 2026-01-01relative weight—Plans negotiate; applies out of network—NYS DOH APG-Based Weights History File (
WisconsinAny qualified provider (rate does not vary by provider) · Wisconsin Medicaid and BadgerCare Plus (fee-for-service, ForwardHealth maximum allowable fees)$0.0304since 2026-01-01——Plans negotiate; applies out of network—ForwardHealth Rate Year 2026 EAPG weight
VirginiaAny qualified provider (rate does not vary by provider) · Virginia Medicaid (fee-for-service, DMAS)$0.0175since 2022-07-01Relative Weight—Plans negotiate; applies out of network—ASC EAPG Weights and Base Rate SFY 2023
IllinoisAny qualified provider (rate does not vary by provider) · Illinois Medicaid (HFS fee-for-service)$0.013since 2023-08-01——Plans negotiate; applies out of network—Outpatient Calculator Effective August 1

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 394?

It depends on the state. Of the 5 states with a published fee-for-service rate, the median is $0.0304. North Carolina pays the most ($2.90) and Illinois the least ($0.013).

Which state pays the highest Medicaid rate for 394?

North Carolina, at $2.90, effective 2026-10-01.

Do managed-care plans pay the same rate for 394?

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 Hospital inpatient codes

Track 394 in your statesYour codes on one rate card: every payer's rule, Medicare comparison, rank and rate changes.
Medicaid rates by state