Medicare Raises Pay for Collaborative Mental Health Care

CMS finalized higher payments for Collaborative Care, a model that brings mental health services into primary care settings.

Updated on Nov. 6, 2026 in Mental Health

Medicare Raises Pay for Collaborative Mental Health Care

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The Centers for Medicare & Medicaid Services raised Medicare payments for Collaborative Care services in the CY 2027 Physician Fee Schedule final rule, with increases of as much as 73% over previous rates. The change targets primary care practices that have struggled to sustain the model financially.

Why it matters

Insufficient reimbursement and workforce shortages have limited how far Collaborative Care can reach, and the payment change is expected to make the model financially sustainable for primary care practices. Officials and partners say it could bring the approach to millions more Americans.

The final rule raises Collaborative Care payments by as much as 73% over prior Medicare rates, a figure drawn from the CY 2027 fee schedule. How many practices will adopt the model at the higher rates remains unclear.

The players

Centers for Medicare & Medicaid Services

The federal agency that administers Medicare and issued the CY 2027 Physician Fee Schedule final rule raising Collaborative Care payments.

West Health

A nonprofit health care innovation organization that is partnering with Northwestern Medicine, the American Psychiatric Association, and the National Committee for Quality Assurance on Collaborative Care.

Northwestern Medicine

A Chicago-based health system that expanded Collaborative Care across its 86 primary care clinics.

The details

CMS finalized increases to work relative value units for Collaborative Care services and updated clinical labor rates for the Behavioral Health Care Manager, the staff member who coordinates patient care. The model pairs a primary care provider with a behavioral health care manager and a psychiatric consultant. Northwestern Medicine has expanded the model across its entire primary care population of 86 clinics.

2024: Northwestern Medicine's West Health Accelerator launched.
November 4, 2026: CMS released the CY 2027 Medicare Physician Fee Schedule final rule.
November 5, 2026: CMS payment policy was announced and this story was published.

Big Picture

The CY 2027 Physician Fee Schedule final rule uses Medicare payment adjustments, the same mechanism CMS applies each year, to make Collaborative Care financially viable for primary care practices. The change builds on a pattern in which Medicare payment policy shapes where behavioral health services are delivered.

For patients, the change may mean more opportunities to receive mental health care through a primary care visit as practices adopt the model. The payment rise is expected to make Collaborative Care available to millions more Americans over time.

The takeaway

Seven in ten Americans want primary care doctors to address both physical and mental health, and Medicare's higher payments may make that routine. Patients who have not been asked about their mental health at a visit can raise the topic with their primary care provider.