Medicare Raises Pay for Primary Care Mental Health

Primary care practices may be able to offer more integrated mental health services as Medicare payments rise up to 73%.

Updated on Nov. 6, 2026 in Mental Health

Medicare Raises Pay for Primary Care Mental Health

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The Centers for Medicare & Medicaid Services raised Medicare payments for Collaborative Care, a model that pairs primary care with behavioral health management, in its CY 2027 Physician Fee Schedule final rule. The payment increases could reach as much as 73% above previous Medicare rates, affecting primary care practices nationwide.

Why it matters

Insufficient reimbursement and workforce shortages have limited how many patients can get Collaborative Care, which is designed to bring mental health support into routine primary care visits. Higher payments are expected to make the model financially sustainable for practices, potentially expanding access for millions of Americans.

The figures come from a CMS final rule setting Medicare payment policy for 2027, alongside a Northwestern Medicine expansion covering 86 clinics. The rule raises work relative value units and clinical labor rates for Collaborative Care, with payment increases of as much as 73% from previous rates, though the source does not report measured patient outcomes.

The players

Centers for Medicare & Medicaid Services

The federal agency that administers Medicare and sets its physician payment rules, including the Physician Fee Schedule that governs reimbursement for primary care and behavioral health services.

Northwestern Medicine

A major Chicago-area health system that has expanded Collaborative Care across its primary care clinics as part of a partnership with West Health.

West Health

A nonprofit that works to improve health care access and quality, including through its partnerships on Collaborative Care workforce training and clinical measures.

American Psychiatric Association

The professional medical organization for psychiatrists, which is partnering with West Health on training the workforce for Collaborative Care.

National Committee for Quality Assurance

A nonprofit that sets quality measures for health care, which is partnering with West Health on standard clinical and economic measures for the Collaborative Care Model.

The details

Collaborative Care brings together a primary care provider, a behavioral health care manager, and a psychiatric consultant to coordinate treatment for patients with mental health conditions. CMS finalized the payment increases in the CY 2027 Medicare Physician Fee Schedule final rule, updating both work relative value units for the services and the clinical labor rates for the behavioral health care manager role. Together, these changes are intended to make the care team model affordable for practices to staff and sustain.

November 4, 2026: CMS released the CY 2027 Medicare Physician Fee Schedule final rule.
2024: Northwestern Medicine's West Health Accelerator launched its Collaborative Care partnership.

Health Landscape

Collaborative Care has been used in primary care settings for years, but reimbursement levels have limited how widely practices can adopt it. The payment increase in the CY 2027 Physician Fee Schedule is a federal effort to bring integrated behavioral health care into routine primary care at scale.

If you receive care in a primary care practice, it is worth asking whether your clinic offers Collaborative Care or integrated behavioral health services. Higher Medicare payments may expand availability over time, so discuss with your doctor whether this model could fit your needs.

The takeaway

Integrated mental health care in primary care is gaining federal financial support, which may help more people access treatment without leaving their regular doctor's office. Ask your primary care provider whether they offer behavioral health care management or Collaborative Care.