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Billing code 81404 · Lab & pathology

81404 Medicaid reimbursement rate by state (2026)

Clinical lab tests. Medicaid pays a median of $249.08 for 81404 across 38 states, from $13.50 in Arizona to $404.09 in Kansas.

Data as of Oct 5, 202638 statesEvery rate links to its official source

States publishing
38
National median
$249.08units vary by state
Lowest
$13.50Arizona
Highest
$404.09Kansas
Answer

What does Medicaid pay for 81404?

38 state Medicaid programs publish a fee-for-service rate for 81404. The national median is $249.08 (units differ between states). Kansas pays the most, $404.09, and Arizona the least, $13.50 per A, a 29.9x spread.

State ranking

81404 rate by state: highest, middle and lowest

One like-for-like fee-for-service rate per state, ranked. The workspace lists all 38 states with every variant, modifier and effective date.

#StateMedicaid rateUnitPer hourManaged-care plans% of Medicare
1Kansas Source · since 2013-01-01$404.09——Plans must pay at least this—
2Arkansas Source · since 2025-03-26$352.28——Not classified—
3New Mexico Source · since 2024-11-01$329.80——Plans must pay at least this—
19Iowa Source · since 2014-01-01$250.81——Plans must pay at least this—
20Missouri Source · since 2026-07-01$247.35——Plans negotiate; applies out of network—
21Mississippi Source · since 2026-07-01$247.35——Plans must pay at least this—
37Florida Source · since 2026-01-01$141.93——Plans negotiate; applies out of network—
38Arizona Source · since 2021-10-01$13.50A—Plans negotiate; applies out of network—
See all 38 states for 81404 — start free

30 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.

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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 81404 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 81404, 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 38 states list more than one rate for 81404, 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 38 states, 1 publish 81404 per unit and 1 per a, and 36 schedules print no unit at all (a flat amount per service).
  • Per hour. 81404 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 81404, 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 81404 rates differ between states

Published rates for 81404 run from $13.50 in Arizona to $404.09 in Kansas. The two publish it in different units (no unit printed versus A), so part of that gap is the unit rather than the price. Half the states pay more than the median of $249.08 and half pay less. The usual reasons for a spread like this in lab & pathology rates:

  • Fees for newer molecular and genetic tests are often set case by case, so fewer states publish them and the published amounts spread widely.
  • Pathology services with an interpretation have professional and technical components that states price separately.
  • Some states bundle certain tests into panels or into facility payments, so the separately billable amount differs.

Timing matters too. 9 states set the current rate for 81404 in 2026 or later, while 15 states 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 81404

No managed-care plan publishes what it pays for 81404. What is public is the rule each state's plan contracts set, and that rule decides how much the published rate matters when you contract with a plan.

In 6 states, the published rate binds plans: a floor, a pass-through or a state-set rate. In 19 states, plans negotiate and the published rate is a benchmark or out-of-network default (or a ceiling). The rule for the remaining 13 states is not classified yet.

  • Plans negotiate; the published rate applies out of network (18 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 (6 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 may pay no more than the published rate (1 state). Expect offers at or below the published rate. Higher payment would have to come from something other than the base rate, such as a quality or value-based arrangement.

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 Kansas managed care.

Billing

Units and billing for 81404

81404 is a CPT pathology and laboratory code in the lab & pathology line, billed mostly by independent laboratories, hospital labs and pathology groups. Laboratory codes are paid per test; a panel is paid as one code, not as the sum of its tests. Pathology codes with an interpretation can be split into professional and technical components.

Laboratory tests are billed per test, and a panel is paid as a single code rather than as the sum of its component tests. Pathology interpretation can be billed with modifier 26 when the laboratory and the pathologist bill separately.

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 81404?

It depends on the state. Of the 38 states with a published fee-for-service rate, the median is $249.08. Kansas pays the most ($404.09) and Arizona the least ($13.50 per A).

Which state pays the highest Medicaid rate for 81404?

Kansas, at $404.09, effective 2013-01-01.

Which state pays the lowest Medicaid rate for 81404?

Arizona, at $13.50 per A, effective 2021-10-01. It publishes the code in a different unit from Kansas, so compare per unit with care.

What unit is 81404 billed in?

Of the 38 states, 1 publish 81404 per unit and 1 per a, and 36 schedules print no unit at all (a flat amount per service).

Do managed-care plans pay the same rate for 81404?

Not necessarily. In 6 states, the published rate binds plans: a floor, a pass-through or a state-set rate. In 19 states, plans negotiate and the published rate is a benchmark or out-of-network default (or a ceiling). 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.