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Billing code G0397 · Physician & professional

G0397 Medicaid reimbursement rate by state (2026)

Alcohol and/or substance. Medicaid pays a median of $52.50 for G0397 across 16 states, from $13.89 in Kansas to $94.84 in Montana.

Data as of Oct 5, 202616 statesEvery rate links to its official source

States publishing
16
National median
$52.50units vary by state
Lowest
$13.89Kansas
Highest
$94.84Montana
Answer

What does Medicaid pay for G0397?

16 state Medicaid programs publish a fee-for-service rate for G0397. The national median is $52.50 (units differ between states). Montana pays the most, $94.84, and Kansas the least, $13.89, a 6.8x spread.

Medicare (non-facility, 2026 physician fee schedule): $63.84–$80.76 depending on the state's Medicare locality.

State ranking

G0397 rate by state: highest, middle and lowest

One like-for-like fee-for-service rate per state, ranked. The workspace lists all 16 states with every variant, modifier and effective date.

#StateMedicaid rateUnitPer hourManaged-care plans% of Medicare
1Montana Source · since 2026-07-01$94.84——Not classified—
2Iowa Source · since 2024-01-01$65.95——Plans must pay at least this—
3Hawaii Source · since 2026-06-01$61.16——Plans negotiate; applies out of network—
8Oregon Source · since 2026-02-01$54.06——Plans negotiate; applies out of network—
9Minnesota Source · since 2026-02-01$50.94——Plans negotiate; applies out of network—
10Ohio Source · since 2024-01-01$50.06——Plans negotiate; applies out of network—
15New Jersey Source · since 2026-07-01$27.52——Not classified—
16Kansas Source · since 2009-12-18$13.89——Not classified—
See all 16 states for G0397 — start free

8 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 G0397 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 G0397, 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 16 states list more than one rate for G0397, 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 16 states, 1 publish G0397 per unit, and 15 schedules print no unit at all (a flat amount per service).
  • Per hour. G0397 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. Medicare amounts exist for G0397, but no state's Medicaid unit matches Medicare's billing unit closely enough to compute a percentage.
  • Source and date. Each Source link opens the state's own document; “since” is the date the rate took effect.
Context

Why G0397 rates differ between states

Published rates for G0397 run from $13.89 in Kansas to $94.84 in Montana, a 6.8x gap in the same unit. Half the states pay more than the median of $52.50 and half pay less. The usual reasons for a spread like this in physician & professional rates:

  • Each state sets its own physician conversion factor or fee for every code, and many update them on a state budget cycle rather than on Medicare's calendar.
  • Many schedules pay differently by place of service (office versus facility) and by practitioner, and nurse practitioners and physician assistants are often paid a percentage of the physician amount.
  • Primary-care and pediatric add-ons, enhanced rates for certain specialties and targeted increases for access problems change individual codes without moving the rest of the schedule.

Timing matters too. 11 states set the current rate for G0397 in 2026 or later, while 2 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 G0397

What a plan pays for G0397 is negotiated privately, but the state decides how much room there is to negotiate. Here is how the rules break down across the 16 states.

In 4 states, the published rate binds plans: a floor, a pass-through or a state-set rate. In 7 states, plans negotiate and the published rate is a benchmark or out-of-network default. In 1 state, the service is paid outside the plans or through a state-directed payment. The rule for the remaining 4 states is not classified yet.

  • Plans negotiate; the published rate applies out of network (7 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.
  • Paid by the state, outside the plans (1 state). Bill the state's Medicaid program, not the plan, at the published rate. There is no plan contract to negotiate for this service.

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.

Billing

Units and billing for G0397

G0397 is a HCPCS Level II professional services code in the physician & professional line, billed mostly by physicians, nurse practitioners, physician assistants and other licensed practitioners. G codes describe professional services and procedures that have no CPT code, or that payers define more narrowly. Many are timed, so check the unit before comparing.

Where a state publishes separate facility and non-facility amounts, the non-facility (office) amount is usually higher because the practice carries the overhead. Practitioners who are not physicians are often paid a reduced percentage of the published amount, so check the schedule for the reduction that applies to your provider type.

Medicare's 2026 physician fee schedule pays $63.84–$80.76 for G0397 (non-facility), depending on the Medicare locality. That is a useful reference point, but Medicare and Medicaid can define the unit differently, so compare only where the units match.

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 G0397?

It depends on the state. Of the 16 states with a published fee-for-service rate, the median is $52.50. Montana pays the most ($94.84) and Kansas the least ($13.89).

Which state pays the highest Medicaid rate for G0397?

Montana, at $94.84, effective 2026-07-01.

Which state pays the lowest Medicaid rate for G0397?

Kansas, at $13.89, effective 2009-12-18.

What unit is G0397 billed in?

Of the 16 states, 1 publish G0397 per unit, and 15 schedules print no unit at all (a flat amount per service).

Do managed-care plans pay the same rate for G0397?

Not necessarily. In 4 states, the published rate binds plans: a floor, a pass-through or a state-set rate. In 7 states, plans negotiate and the published rate is a benchmark or out-of-network default. In 1 state, the service is paid outside the plans or through a state-directed payment. The rule for the remaining 4 states is not classified yet. Each rule is cited to the plan contract, statute or notice in the workspace.