Print-Friendly Version

Medicare Mental Health

CPT codes, descriptions and other data only are copyright 2020 American Medical Association. All Rights Reserved.
Applicable FARS/HHSAR apply. CPT is a registered trademark of the American Medical Association. Applicable
FARS/HHSAR Restrictions Apply to Government Use. Fee schedules, relative value units, conversion factors and/or
related components are not assigned by the AMA, are not part of CPT, and the AMA is not recommending their use. The
AMA does not directly or indirectly practice medicine or dispense medical services. The AMA assumes no liability for data
contained or not contained herein.

Page 1 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Table of Contents
What’s Changed? ................................................................................................................................ 3
Introduction.......................................................................................................................................... 4
Covered Medicare Fee-for-Service Mental Health Services ............................................................ 4
Prescription Drug Coverage ............................................................................................................... 7
Medicare Advantage Organizations ................................................................................................... 7
Non-Covered Medicare Fee-for-Service Mental Health Services .................................................... 7
Eligible Professionals ......................................................................................................................... 7
Provider Information ........................................................................................................................... 8
Table 1. Psychiatrist ......................................................................................................................... 8
Table 2. Clinical Psychologist (CP) .................................................................................................. 9
Table 3. Clinical Social Worker (CSW) ........................................................................................... 10
Table 4. Clinical Nurse Specialist (CNS) .........................................................................................11
Table 5. Nurse Practitioner (NP) .................................................................................................... 12
Table 6. Physician Assistant (PA) ................................................................................................... 13
Table 7. Certified Nurse-Midwife (CNM)......................................................................................... 14
Table 8. Independently Practicing Psychologist (IPP) .................................................................... 15
Incident to Provision ......................................................................................................................... 16
Commonly Used CPT Codes ............................................................................................................ 16
Table 9. Eligible Professionals Commonly Used CPT Codes ........................................................ 16
National Correct Coding Initiative (NCCI) ....................................................................................... 20
Outpatient Psychiatric Hospital Services ....................................................................................... 20
Partial Hospitalization Program (PHP) ........................................................................................... 21
Community Mental Health Center (CMHC) .................................................................................... 23
Behavioral Health Integration (BHI) Services................................................................................. 23
Medical Records Checklist: Outpatient Psychiatric Services ....................................................... 24
Acute Care Hospital .......................................................................................................................... 27
Inpatient Psychiatric Facility (IPF) Services ................................................................................... 27
Medical Records Requirements ..................................................................................................... 27
Medical Records Checklist: Inpatient Psychiatric Services .......................................................... 28
Coverage Period ............................................................................................................................ 32
Same Day Billing Guidelines ............................................................................................................ 32
Resources .......................................................................................................................................... 33

Page 2 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

What’s Changed?

● Clarified NP coverage requirements in Table 5

You’ll find substantive content updates in dark red font.

Page 3 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Introduction
This booklet offers a comprehensive review of Medicare covered behavioral health services. Behavioral
health services, typically referred to as mental health services and includes substance abuse, affects
a patient’s overall well-being. It’s important to understand Medicare coverage of these services. This
booklet includes information on covered and non-covered services, eligible providers, Medicare
Advantage and Medicare drug plan coverage, as well as medical record documentation and coding.

Covered Medicare Fee-for-Service Mental Health Services

Medicare may cover these services to support behavioral health and wellness:
● Alcohol misuse screening and counseling for adults who use alcohol but aren’t dependent; if you
detect misuse, Medicare covers up to 4 brief face-to-face counseling sessions per year if patient is
alert and competent during counseling
● Alcohol treatment, detoxification, outpatient hospital treatment, and rehabilitative services
including inpatient hospital stays
● Annual Wellness Visit (AWV) to develop or update a personalized prevention plan including a
health risk assessment and a depression screening
● Advance care planning to discuss the patient’s health care wishes if they aren’t able to make
decisions about their care, as part of the AWV, or as a separate Part B service
● Behavioral Health Integration (BHI) by clinical staff to assess, monitor, and plan care
● Biofeedback therapy, a non-drug treatment where patients learn to control bodily responses like
heart rate and muscle tension
● Bundled Payments for Opioid Use Disorder (OUD) are payments for OUD management and
counseling, billed in the office setting, including overall management, care coordination,
individual and group psychotherapy, and substance use counseling; for billing codes, refer to
HCPCS G2086–G2088

Page 4 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

● Caregiver-focused behavioral health risk assessment

of their own behavior and health risks, which benefits Opioid Treatment Programs
the patient
● Chemical and electrical aversion therapy to condition Effective January 2020, CMS pays
a person to avoid undesirable behavior by pairing the certified Opioid Treatment Programs
behavior with unwanted stimuli (OTPs) through bundled payments
for OUD treatment services under
● Cognitive Assessment and Care Planning, a Medicare Part B. Covered services
comprehensive evaluation of a new or existing include FDA-approved opioid
patient who exhibits signs and symptoms of cognitive agonist and antagonist medication,
impairment, required to establish or confirm a assisted treatment medications and
diagnosis, etiology, and condition severity their administration (if applicable),
● Chronic Care Management (CCM) and Complex substance use counseling, individual
Chronic Care Management for patients with multiple and group therapy, toxicology testing,
chronic conditions which place the person at high risk intake, and periodic assessments.
● Annual depression screening, up to 15 minutes, Find more information in the
when staff-assisted depression care supports can Opioid Treatment Program Directory.
assure accurate diagnosis, effective treatment, and
follow-up; screening by clinical staff in the primary
care setting who can advise the physician of results
and coordinate treatment referrals
● Diagnostic psychological and neuropsychological tests
● Drug therapy or pharmacological management using medication(s) to treat disease; most Medicare
Drug Plans have drug management programs for at-risk patients enrolled in Medicare Part D
● Drug withdrawal treatment to monitor the signs and symptoms from removal or a decrease in the
regular drug dose
● Electroconvulsive therapy (ECT) treating depression and other mental illness using electric current
to the head
● Family psychotherapy with or without the patient present, as medically reasonable and necessary,
with patient treatment as the primary purpose
● Health and behavioral assessment and intervention identifying or treating the psychological,
behavioral, emotional, cognitive, and social factors important to prevent, treat, or manage physical
health issues
● Hypnotherapy
● Individual and group psychotherapy may be individual therapy with 1 or more therapists or more
than 1 individual in a therapy session with 1 or more therapists
● Individual activity therapy as part of a Partial Hospitalization Program (PHP) and may be cognitive,
physical, social, and spiritual and not recreational or diversionary
● Initial Preventive Physical Examination (IPPE) to review medical and social health history and
preventive services education

Page 5 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

● Interactive psychotherapy
● Medication management when a patient agrees to a medication treatment option for a trial period
and is monitored for its effectiveness
● Medication-Assisted Treatment (MAT) uses medications with counseling and behavioral therapy
to treat substance use disorders including OUDs; effective January 2020, when a certified OTP
provider treats OUDs, Medicare pays for certain medications and services
● Narcosynthesis, a form of narcoanalysis where the patient recalls repressed memories
under hypnosis
● PHP, a structured and intensive program of outpatient psychiatric services, is an alternative to
inpatient psychiatric care provided during the day that doesn’t require an overnight stay, through a
hospital outpatient department or community mental health center
● Psychiatric collaborative care services uses BHI to enhance primary care services and includes a
psychiatric consultant
● Psychoanalysis treats mental disorders by investigating the interaction of conscious and
unconscious elements
● Psychiatric evaluation systematically evaluates the causes, symptoms, and course and
consequences of a psychiatric disorder
● Screening, Brief Intervention, and Referral to Treatment (SBIRT) services is early intervention
for individuals with non-dependent substance use to help them prevent more extensive or
specialized treatment
● Substance use disorder treatment in a patient’s home is now an acceptable telehealth services
site for substance use treatment or a co-occurring mental disorder
● Tobacco use cessation counseling
● Therapeutic activities which can improve the patient’s condition, such as occupational therapy,
recreational therapy, and milieu therapies
● Transitional care management, within 30 days of discharge from an inpatient hospital setting,
interactive contact, certain non-face-to-face services, and face-to-face visits
● Urgently needed care to treat a sudden illness or injury that doesn’t need emergency medical
attention to prevent disability or death

Page 6 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Prescription Drug Coverage

Medicare Part D covers prescription drugs. Medicare Part A and Part B generally don’t cover drugs,
but Part B covers some medications patients can’t self-administer. For other prescription coverage,
patients must enroll in a separate Medicare Drug Plan. Medicare Advantage enrollees can get Part A,
Part B, and Part D benefits under a single plan.
Medicare Drug Plans cover certain protected mental health treatment drug classes, including
antipsychotics, antidepressants, and anticonvulsants. Medicare Drug Plans must cover most
medications in these drug classes, with some exceptions.

Medicare Advantage Organizations

In addition to providing all Medicare Part B covered mental health services, Medicare Advantage
plans may offer “additional telehealth benefits” (telehealth benefits beyond what Part B pays), as well
as supplemental benefits that aren’t covered under Medicare Parts A or B. For example, these mental
health supplemental benefits may address areas like coping with life changes, conflict resolution, or
grief counseling, all offered as individual or group sessions.

Non-Covered Medicare Fee-for-Service Mental Health Services

Medicare doesn’t cover these mental health services:

● Environmental intervention or modifications ● Report preparation

● Adult day health programs ● Results or data interpretation or explanation
● Biofeedback training (any modality) ● Hemodialysis specifically for treating
● Marriage counseling schizophrenia (experimental)
● Pastoral counseling ● Transportation or outpatient meals
● Phone services, or “apps”

Eligible Professionals
Medicare recognizes these Part B providers as eligible to provide diagnostic and BHI or SBIRT
services, as permitted under state law:
● Physicians (Medical Doctors [MDs] and ● Clinical Nurse Specialists (CNSs)
Doctors of Osteopathy [DOs]), particularly ● Nurse Practitioners (NPs)
Psychiatrists
● Physician Assistants (PAs)
● Clinical Psychologists (CPs)
● Certified Nurse-Midwives (CNMs)
● Clinical Social Workers (CSWs)
● Independently Practicing Psychologists (IPPs) 

Page 7 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Provider Information
These tables list individual provider-type required qualifications, coverage, and payment criteria.
Each provider type must meet all qualification and coverage requirements. For a list of specific billing
codes, see the Commonly Used CPT Codes section.
Table 1. Psychiatrist

Required Qualifications Coverage Payment

● MD or DO ● Legally authorized to practice ● Paid at 100% under
● Act within scope of your medicine in the state where you Medicare Physician Fee
license provide services Schedule (PFS)
● Medicare doesn’t statutorily
preclude the services, and they’re
reasonable and necessary
● You may provide the general
supervision assigned to
diagnostic psychological and
neuropsychological tests
● You may provide services
and supplies incident to your
professional services

Page 8 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Table 2. Clinical Psychologist (CP)

Required Qualifications Coverage Payment

● Psychology Doctoral degree ● Legally authorized to practice ● Paid only on
● Licensed or certified in the medicine in the state where you assignment basis
state where you practice at provide services ● Paid at 100% of
the independent level and ● Medicare doesn’t statutorily assigned services under
directly provide diagnostic, preclude the services, and they’re Medicare PFS
assessment, preventive, and reasonable and necessary
therapeutic patient services ● If the patient consents, you must
attempt to consult their attending
or primary care physician about
provided services and either:
● Document consent
or declination date to
consultations and date of
consultations in patient’s
medical record
● If consultations are
unsuccessful, document
the patient’s medical chart
with the date and physician
notification method (doesn’t
apply if physician referred
patient to CP)
● You may generally supervise
diagnostic psychological and
neuropsychological tests
● You may provide services
and supplies incident to your
professional services, except for
hospital patient services

Page 9 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Table 3. Clinical Social Worker (CSW)

Required Qualifications Coverage Payment

● Social Work Master’s or ● Legally authorized to practice ● Paid only on
Doctoral degree medicine in the state where you assignment basis
● At least 2 years of supervised provide services ● Paid at 75% of CP’s
clinical social work ● Medicare doesn’t statutorily Medicare PFS
● Licensed or certified as preclude the services, and they’re
CSW by the state where you reasonable and necessary
provide services ● You provide services to diagnose
● If you practice in a state that and treat mental illnesses
doesn’t have licensure or ● Medicare doesn’t pay CSW
certification, and complete services to hospitalized patients
at least 2 years or 3,000 with no CSW services coverage
supervised social work ● Medicare covers hospital
practice clinical hours, outpatient CSW services and
post-Master’s degree in pays under the CSW benefit
an appropriate setting (for when billed by the hospital
example, a hospital, Skilled under CSW’s National Provider
Nursing Facility [SNF], or Identifier
clinic)
● Medicare doesn’t cover CSW
services to patients under
PHP by a hospital outpatient
department or Community
Mental Health Center
● Medicare doesn’t cover CSW
services to SNF inpatients and
patients in Medicare-participating
End-Stage Renal Disease
facilities, or pay them under
the CSW benefit if the services
meet the respective participation
requirements
● Medicare may cover incident
to services CSWs provide for
physicians, CPs, CNSs, NPs,
PAs, or CNMs
● Medicare doesn’t cover services
incident to your personal
professional services

Page 10 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Table 4. Clinical Nurse Specialist (CNS)

Required Qualifications Coverage Payment

● Registered Nurse (RN) ● Legally authorized to practice ● Paid only on
currently licensed in the medicine in the state where you assignment basis
state where you practice provide services ● Paid at 85% of amount
and authorized to provide ● Medicare doesn’t statutorily physician gets under
CNS services according to preclude the services, and they’re Medicare PFS
state law reasonable and necessary ● Medicare directly pays
● Doctor of Nursing Practice ● Medicare considers the services you for assistant-at-
or Master’s degree in a physicians’ services if provided surgery services at 85%
defined clinical nursing by an MD or DO of 16% of the amount
area from an accredited a physician gets under
● You provide the services with a
educational institution Medicare PFS
physician
● Certified as a CNS by
● Medicare may cover assistant-at-
a recognized national
certifying body with surgery services you provide
established CNS standards ● You may personally provide
diagnostic psychological and
neuropsychological tests with a
physician as required under CNS
benefit and as permitted under
state law
● Medicare may cover incident to
services and supplies

Page 11 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Table 5. Nurse Practitioner (NP)

Required Qualifications Coverage Payment

● RN licensed and authorized ● Legally authorized to practice ● Paid only on
by the state where you medicine in the state where you assignment basis
provide NP services provide services ● Paid at 85% of amount
according to state law: ● Medicare doesn’t statutorily physician gets under
● Got Medicare NP billing preclude the services, and they’re Medicare PFS
privileges for first time reasonable and necessary ● Medicare directly pays
since January 1, 2003, ● Medicare considers the services you for assistant-at-
and: physicians’ services if provided surgery services at 85%
▪ Are NP-certified by a by an MD or DO of 16% of the amount
recognized national ● You provide the services while a physician gets under
certifying body with working in collaboration with Medicare PFS
established NP a physician
standards
▪ Master’s degree in ● Medicare may cover assistant-at-
nursing or a Doctor surgery services you provide
of Nursing Practice
● You may personally provide
Doctoral degree diagnostic psychological and
● Got Medicare NP billing neuropsychological tests to the
privileges for first time extent authorized by state law to
before January 1, 2003, perform the tests in collaboration
and meets the with a physician as required
certification requirements under the NP benefit; Also, NPs
● Got Medicare NP billing are authorized to supervise the
privileges for first time performance of diagnostic tests
before January 1, 2001 in accordance with state law and
scope of practice
● Medicare may cover incident to
services and supplies

Page 12 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Table 6. Physician Assistant (PA)

Required Qualifications Coverage Payment

● Licensed by the state where ● Legally authorized to practice ● Paid only on
you practice and 1 of these medicine in the state where you assignment basis
criteria: provide services ● Paid only to your:
● Graduated from ● Medicare doesn’t statutorily ● Qualified employer
a PA educational preclude the services, and they’re eligible to enroll
program accredited reasonable and necessary in the Medicare
by the Accreditation ● Medicare considers the services Program under
Review Commission physicians’ services if provided existing provider
on Education for the by an MD or DO and supplier
Physician Assistant categories
● An individual who meets all
(or its predecessor
agencies, the PA qualifications provides the ● Contractor
Commission on services ● Medicare pays 85% of
Accreditation of Allied ● You provide services under an amount physician gets
Health Education MD or DO’s general supervision under Medicare PFS
Programs, and ● The physician supervisor or ● Medicare pays your
Committee on Allied designee doesn’t need to be employer or contractor
Health Education and physically present during a for assistant-at-surgery
Accreditation) service unless state law or services at 85% of the
● Passed the national regulations require otherwise amount a physician gets
certification exam ● Medicare may cover assistant-at- under Medicare PFS
administered by the surgery services you provide
National Commission on
● You may personally provide
Certification of Physician
Assistants diagnostic psychological and
neuropsychological tests under
the general supervision of a
physician as required under
the PA benefit and as permitted
under state law
● Medicare may cover incident to
services and supplies

Page 13 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Table 7. Certified Nurse-Midwife (CNM)

Required Qualifications Coverage Payment

● RN legally authorized to ● Legally authorized to practice ● Paid only on
practice as a Nurse-Midwife medicine in the state where you assignment basis
in the state where you provide services ● Paid at 80% of the
provide services ● Medicare doesn’t statutorily lesser of the actual
● Successfully completed a preclude the services, and they’re charge or 100% of the
nurse-midwives program reasonable and necessary amount physician gets
of study and clinical ● Medicare considers the services under Medicare PFS
experience accredited by an physicians’ services if provided
accrediting body approved by an MD or DO
by the U.S. Department of
Education ● You provide services without
physician supervision and without
● Certified as a Nurse-Midwife association with a physician or
by the American College of other health care provider, unless
Nurse-Midwives or American otherwise required under state law
College of Nurse-Midwives
Certification Council ● You may personally provide
diagnostic psychological and
neuropsychological tests
without physician supervision or
oversight as authorized by the
CNM benefit and permitted under
state law
● Medicare may cover incident to
services and supplies

Page 14 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Table 8. Independently Practicing Psychologist (IPP)

Required Qualifications Coverage Payment

● Psychologist who isn’t a CP ● Medicare doesn’t statutorily ● Diagnostic
● Meets 1 of these criteria: preclude the services, and they’re psychological and
reasonable and necessary neuropsychological
● Practices independently tests aren’t subject to
of an institution, agency, ● Provide services on your
own responsibility, free of assignment; however,
or physician’s office and you must include
licensed or certified to administrative and professional
control of an employer (for name and address of
practice psychology in physician ordering tests
the state or jurisdiction example, a physician, an
institution, or an agency) on the claim
where you provide the
services ● You treat your own patients ● Paid at 100% for
assigned services
● Practicing psychologist ● When you practice in an office
under Medicare PFS
who provides services in that’s in an institution:
a jurisdiction that doesn’t ● The office is confined to a
issue licenses separately identified part
of facility used solely as an
office and can’t be confused
as extending throughout the
entire institution
● You operate a private
practice (to patients outside
the institution as well as
institutional patients)
● You may provide diagnostic
psychological and
neuropsychological tests when
physician orders them
● You can bill directly and collect
and retain your service fees

Page 15 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Incident to Provision
A physician, CP, CNS, NP, PA, or CNM may provide outpatient psychiatric services and supplies
incident to their professional services. Medicare pays under the “Incident to” provision when the
services and supplies comply with state law and meet all these requirements:
● Services and supplies are integral to the patient’s normal course of treatment and the physician or
other listed Non-Physician Practitioners (NPPs) personally provided an initial service and remains
actively involved in treatment
● Practitioner commonly provides the services and supplies without charge (included in the
physician’s or other listed NPP’s bill)
● Services and supplies are an expense to physician or other listed NPP
● Services and supplies are commonly offered in the physician’s or other listed NPP’s office or clinic
● Physician or other listed NPP provides direct supervision; they’re present in the office suite and
immediately available if needed.
Medicare may cover CP, CSW, CNS, NP, PA, and CNM services and supplies as an incident to the
professional services of a physician or other specified NPP, the same as an MD or DO.
Get more information on the incident to provision at 42 CFR Section 410.71.

Commonly Used CPT Codes

There are thousands of CPT codes. Using the correct CPT code shows the mental health service(s)
you provide to patients and is essential to correct billing. The most used psychiatric and therapeutic
codes include 90791, 90792, 90832, 90834, 90837, 90846, 90847, 90853, and 90839.
Table 9. Eligible Professionals Commonly Used CPT Codes

Description CPT Code

Interactive complexity add-on (for psychotherapy codes) 90785

Code 90785 is an add-on code for interactive complexity to be reported in
conjunction with codes for diagnostic psychiatric evaluation (90791, 90792),
psychotherapy (90832, 90834, 90837), psychotherapy when performed with
an evaluation and management service (90833, 90836, 90838, 99202–99255,
99304–99337, 99341–99350) and group psychotherapy (90853)
Psychiatric diagnostic evaluation 90791

CPT only copyright 2020 American Medical Association. All rights reserved.

Page 16 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Table 9. Eligible Professionals Commonly Used CPT Codes (cont.)

Description CPT Code

Psychiatric diagnostic evaluation with medical services 90792

(Use 90785 in conjunction with 90791, 90792 when the diagnostic evaluation
includes interactive complexity services)
Psychotherapy, 30 minutes with patient 90832
Psychotherapy, 30 minutes with patient when performed with an evaluation and 90833
management service (List separately in addition to the code for primary procedure)
Psychotherapy, 45 minutes with patient 90834
Psychotherapy, 45 minutes with patient when performed with an evaluation and 90836
management service (List separately in addition to the code for primary procedure)
Psychotherapy, 60 minutes with patient 90837
Psychotherapy, 60 minutes with patient when performed with an evaluation and 90838
management service (List separately in addition to the code for primary procedure)
Psychotherapy for crisis; first 60 minutes 90839*
Psychotherapy for crisis add-on—Each additional 30 minutes (List separately in 90840
addition to code for primary service)
Psychoanalysis 90845
Family psychotherapy (without the patient present), 50 minutes 90846
Family psychotherapy, conjoint therapy (with the patient present), 50 minutes 90847
Multiple-family group psychotherapy 90849*
Group psychotherapy (other than of a multiple-family group) 90853*
Electroconvulsive therapy (includes necessary monitoring) 90870
Assessment of aphasia (includes assessment of expressive and receptive 96105
speech and language function, language comprehension, speech production
ability, reading, spelling, writing, eg, by Boston Diagnostic Aphasia Examination)
with interpretation and report, per hour

* Mental Health code not approved for partial hospitalization program.

CPT only copyright 2020 American Medical Association. All rights reserved.

Page 17 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Table 9. Eligible Professionals Commonly Used CPT Codes (cont.)

Description CPT Code

Developmental test administration (including assessment of fine and/or gross 96112

motor, language, cognitive level, social, memory and/or executive functions by
standardized developmental instruments when performed), by physician or other
qualified health care professional, with interpretation and report; first hour
Developmental test administration—Each additional 30 minutes (List separately 96113
in addition to code for primary procedure)
Neurobehavioral status exam (clinical assessment of thinking, reasoning, and 96116
judgment, [eg, acquired knowledge, attention, language, memory, planning and
problem solving, and visual spatial abilities], by physician or other qualified health
care professional, both face-to-face time with the patient and time interpreting
test results and preparing the report; first hour
Neurobehavioral status exam—Each additional hour (List separately in addition 96121
to code for primary procedure)
Psychological testing evaluation services by physician or other qualified 96130
health care professional, including integration of patient data, interpretation of
standardized test results and clinical data, clinical decision making, treatment
planning and report, and interactive feedback to the patient, family member(s) or
caregiver(s), when performed; first hour
Psychological testing evaluation services add-on—Each additional hour (List 96131
separately in addition to code for primary procedure)
Neuropsychological testing evaluation services by physician or other qualified 96132
health care professional, including integration of patient data, interpretation of
standardized test results and clinical data, clinical decision making, treatment
planning and report, and interactive feedback to the patient, family member(s) or
caregiver(s), when performed; first hour
Neuropsychological testing evaluation services—Each additional hour (List 96133
separately in addition to code for primary procedure)
Psychological or neuropsychological test administration and scoring by 96136
physician or other qualified health care professional, two or more tests, any
method; first 30 minutes

CPT only copyright 2020 American Medical Association. All rights reserved.

Page 18 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Table 9. Eligible Professionals Commonly Used CPT Codes (cont.)

Description CPT Code

Psychological or neuropsychological test administration and scoring by physician 96137

or other qualified health care professional add-on—Each additional 30 minutes
(List separately in addition to code for primary procedure)
Psychological or neuropsychological test administration and scoring by 96138
technician, two or more tests, any method; first 30 minutes
Psychological or neuropsychological test administration and scoring by 96139
technician add-on—Each additional 30 minutes (List separately in addition to
code for primary procedure)
Psychological or neuropsychological test administration, with single automated, 96146
standardized instrument via electronic platform, with automated result only
Health behavior assessment, or re-assessment (ie, health-focused clinical 96156
interview, behavioral observations, clinical decision making)
Health behavior intervention, individual, face-to-face; initial 30 minutes 96158
Health behavior intervention, individual–Each additional 15 minutes (List 96159
separately in addition to code for primary service)
Health behavior intervention, group (2 or more patients), face-to-face; initial 30 96164
minutes
Health behavior intervention, group—Each additional 15 minutes (List separately 96165
in addition to code for primary services)
Health behavior intervention, family (with the patient present), face-to-face; initial 96167
30 minutes
Health behavior intervention, family (with the patient present)—Each additional 96168
15 minutes (List separately in addition to code for primary services)
Health behavior intervention, family (without the patient present), face-to-face; 96170
initial 30 minutes
Health behavior intervention, family (without the patient present)—Each 96171
additional 15 minutes (List separately in addition to code for primary services)

CPT only copyright 2020 American Medical Association. All rights reserved.

Page 19 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

National Correct Coding Initiative (NCCI)

The NCCI promotes national correct coding methods and offers national guidance on code pair edits
that prevent billing certain services on the same day. Find more information about the NCCI on the
National Correct Coding Initiative Edits webpage.

Outpatient Psychiatric Hospital Services

Outpatient psychiatric hospital services and supplies are:
● Medically necessary for diagnostic study or the patient’s condition is reasonably expected to
improve (see the Same Day Billing Guidelines section for more information)
● Provided under an individualized written Plan of Care (POC) that states:
● Type, amount, frequency, and duration of services
● Diagnosis
● Expected goals (except when you only provide a few brief services)
● Supervised and periodically evaluated by physician who:
● Prescribes the services
● Determines extent patient reached their treatment goals and whether POC should change
● Provided supervision and direction to therapists involved in patient’s treatment
● Documents their involvement in patient’s medical record
● For diagnostic study or, at a minimum, designed to reduce or control the patient’s psychiatric
symptoms to prevent a relapse or hospitalization and improve or maintain their level of functioning
Generally, Medicare covers these outpatient hospital psychiatric treatment services:
● Medically necessary diagnostic services for individuals when extended or direct observation is
necessary to determine functioning and interactions, identify problem areas, and prepare POC
● Individual and group psychotherapy with physicians, CPs, CSWs, or other eligible providers
authorized or licensed by the state where they provide services
● Social workers, psychiatric nurses, and other staff trained to work with psychiatric patients
● Occupational therapy services, as part of a PHP, that:
● Require qualified occupational therapist skills
● Are provided by, or under the supervision of, a qualified occupational therapist
● Are included in patient’s POC

Page 20 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

● Activity therapies, as part of PHP, that are:

● Individualized and essential for treating patient’s diagnosed condition and progressing toward
treatment goals
● Clearly supported in POC and show each therapy’s need (Not primarily recreational
or diversionary)
● Family counseling services while treating the individual’s condition
● Patient training and education when they’re closely and clearly related to the care and treatment
of individual’s diagnosed psychiatric condition
● Drugs and biologicals for therapeutic purposes the patient can’t self-administer
● CCM to patients with multiple chronic conditions (for example, patients with dementia typically
have multiple chronic conditions that could involve both physical and behavioral health issues,
such as depression)
Generally, Medicare doesn’t cover these outpatient hospital services:
● Meals and transportation
● Activity therapies, group activities, or other primarily recreational or diversionary services and programs
● Psychosocial programs (Medicare covers psychosocial components of outpatient program not
primarily for social or recreational purposes)
● Vocational training related only to specific employment opportunities

Partial Hospitalization Program (PHP)

PHPs are distinct and structured programs that provide intensive outpatient psychiatric care through
active treatment by combining clinically recognized items and services. Medicare covers PHP in
hospital outpatient departments and Community Mental Health Centers (CMHCs).
The patient may pay a percentage of the Medicare-approved amount for each service from doctors or
other qualified mental health professionals, if that health care professional accepts assignment. The
patient may also pay coinsurance for each day of PHP services in a hospital outpatient setting or CMHC.
PHPs offer psychiatric treatment less than 24-hours a day to patients who are:
● Discharged from inpatient hospital treatment and the PHP replaces continued inpatient treatment
● At reasonable risk of needing inpatient hospitalization without partial hospitalization

The PHP must meet these program and patient criteria (42 CFR Section 410.43) guidelines:
● Active treatment that includes an individual POC with coordinated services designed for the
patient’s needs
● POC treatment includes a multi-disciplinary team care approach directed by a physician who
certifies the patient’s need for partial hospitalization and a minimum of 20 hours per week of
therapeutic services

Page 21 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

● Treatment goals should be:

● Measurable
● Functional
● Time-framed
● Medically necessary
● Directly related to the admission reason
● The patient requires comprehensive, highly structured, and scheduled multi-modal treatment that
requires medical supervision and coordination under an individualized POC because of a mental
disorder that severely interferes with multiple areas of daily life (social, vocational, Activities of
Daily Living [ADL]/instrumental ADLs, and educational functioning)
● The patient can cognitively and emotionally participate in the active treatment process and tolerate
its intensity
Medicare doesn’t cover under PHP services:
● Hospital inpatient services
● Meals, self-administered medications, transportation
● Support groups for people to talk and socialize (different than group psychotherapy, which
Medicare covers)
● Testing or training for job skills not part of the mental health treatment

Page 22 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Community Mental Health Center (CMHC)

CMHCs provide partial hospitalization services under Medicare Part B and are subject to the
Outpatient Prospective Payment System (OPPS). Medicare-authorized CMHCs must meet program
and patient criteria (42 CFR Section 485.900) guidelines:
● Meet appropriate state CMHC licensing or certification where located
● Provide:
● Outpatient services including specialized services for children, older adults, chronically
mentally ill individuals, and residents of its mental health service area discharged from
inpatient treatment at a mental health facility
● 24-hour emergency care services with access to a clinician and appropriate disposition with
follow-up documentation of the emergency in the patient’s CMHC medical record
● Day treatment, partial hospitalization services, or psychosocial rehabilitation services with structured
daily treatment plans that vary in intensity, frequency, and duration based on the patient’s needs
● Provide at least 40% of its services to individuals who are ineligible for benefits under
SSA Title XVIII
● Clinically evaluate candidates for admission to a state mental health facility by clinical personnel
and authorized under state law, except those provided by a 24-hour facility; a CMHC operating in
a state that, by law, prevents it from providing these services, may contract with an approved entity
(as determined by the HHS Secretary)
A CMHC is an originating site for telehealth services. Find more information about telehealth services
and important coding information in the Telehealth Services booklet.

Behavioral Health Integration (BHI) Services

Integrating behavioral health care with primary care is an effective strategy for improving outcomes
for those with mental or behavioral health conditions. Medicare separately pays physicians and NPPs
providing BHI services to patients over a calendar month. Find more information on BHI, including
psychiatric collaborative care services and important coding information, in the
Behavioral Health Integration Services booklet.
The following outpatient psychiatric services medical records checklist reminds clinicians and staff of
required documentation, and you can print it.

Page 23 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Print Checklist

Medical Records Checklist: Outpatient Psychiatric Services

Partial Hospitalization Program (PHP) Services & Community Mental Health

Centers (CMHCs)

Medical Record Content (Check if Yes)

□ Patient identification data.
□ Diagnosis including intercurrent disease diagnosis and psychiatric diagnosis.
□ Indicate significant illnesses and medical conditions on the problem list.
□ Prominently note medication allergies and adverse reactions in the record. If the patient has no
known allergies or history of adverse reactions, this is appropriately noted in the record.

CMHC & PHP Standard Initial Evaluation (Check if Yes)

□ Completed within 24 hours of admission
□ Include admitting diagnosis, and other diagnoses
□ Source of referral
□ Reason for admission as stated by patient or other individual significantly involved
□ Identify patient’s immediate clinical care needs related to the psychiatric diagnosis
□ List of current prescriptions and over-the-counter medications and other substances the
patient takes
□ For PHP only, an explanation of why patient is at risk for hospitalization if PHP isn’t provided
□ Identify appropriate members of patient’s interdisciplinary team

Page 24 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

CMHC & PHP Standard Comprehensive Assessment (Check if Yes)

□ Completed timely by interdisciplinary treatment team consistent with patient’s needs, but no later
than 4 working days after admission
□ Identifies the physical, psychological, psychosocial, emotional, and therapeutic needs related to
the patient’s psychiatric illness and ensures active treatment plan is consistent with findings
□ Includes:
□ Reason for admission
□ A psychiatric evaluation containing medical history and severity of symptoms
□ Information about previous and current mental status
□ Onset of symptoms of the illness and circumstances leading to admission
□ Description of attitudes and behaviors affecting the treatment plan
□ Assessment of intellectual and memory functioning and orientation
□ Complications of risk factors affecting care planning
□ Functional status including whether patient can participate in their own care, and patient’s
strengths and goals
□ Factors affecting patient safety or safety of others and suicide risk factors
□ Drug profile of all patient’s prescription and over-the-counter medications
□ Need for referrals and further evaluation by other health care professionals
□ Factors to consider for discharge planning
□ Identify patient’s current social and health care support systems
□ For pediatric clients, assess social service needs and make referral as needed
□ Make updates with interdisciplinary team when changes occur in the patient’s status, response to
treatment, or patient meets goals
□ Upon discharge or transfer of patient to another entity, within 2 working days, the CMHC must forward:
□ Discharge summary
□ Clinic record if requested

Page 25 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

CMHC & PHP Standard Comprehensive Assessment (cont.) (Check if Yes)

□ If a patient refuses the services of a CMHC, or is non-compliant with treatment plan, the CMHC
must forward to the primary health care provider:
□ Copy of the CMHC discharge summary
□ Client record if requested
□ Discharge summary includes patient:
□ Current active treatment plan
□ Most recent physician orders
□ Any documentation to help in post-discharge continuity of care

Page 26 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Acute Care Hospital

When a physician admits a patient to the hospital for mental health services, Medicare covers the
services if the patient needs active treatment with an intensity only appropriately provided in an
inpatient setting. The facility must be a general hospital with a distinct psychiatric unit or a psychiatric
hospital that only cares for people with mental health conditions.
Medicare certifies Inpatient Psychiatric Facilities (IPFs) and distinct psychiatric units in acute care
hospitals and Critical Access Hospitals (CAHs).
Medicare covers:
● Semi-private rooms
● Meals
● General nursing
● Drugs (including methadone to treat an opioid use disorder)
● Other hospital services and supplies as part of inpatient treatment

Deductible and coinsurance apply. See the Coverage Period section for more information.

Inpatient Psychiatric Facility (IPF) Services

IPFs include freestanding, certified psychiatric hospitals and psychiatric units in acute care hospitals
or CAHs. IPFs provide routine hospital and psychiatric services to diagnose and treat patients with
mental disorders.
Medicare pays for inpatient psychiatric services under the Inpatient Psychiatric Facility Prospective
Payment System (IPF PPS) when it certifies the institution and the institution meets
Inpatient Psychiatric Hospital Services Regulations.
Medicare requires updated hospital inpatient rights and discharge planning conditions of participations
for short-term acute-care, rehabilitation, psychiatric, children’s, cancer, and CAHs.
Get more information about the current discharge planning conditions of participation requirements at
42 CFR Section 482.43.

Medical Records Requirements

The IPF medical records must show treatment level and intensity for each patient a physician or NPP
admits to the hospital, among other requirements detailed at 42 CFR Section 482.61.
Patients can access their medical records when requested verbally or in writing, and the hospital must
quickly seek to meet the patient’s request, detailed at 42 CFR Section 482.13.
The following inpatient psychiatric services medical records checklist reminds clinicians and staff of
required documentation, and you can print it.

Page 27 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Print Checklist

Medical Records Checklist: Inpatient Psychiatric Services

Medical Records Content (Check if Yes)

□ Patient identification data including inpatient legal status
□ History of findings and a treatment plan for the incoming patient
□ Provisional or admitting diagnosis for every inpatient including intercurrent disease diagnoses and
psychiatric diagnoses
□ Admission reasons clearly documented by inpatient staff or others significantly involved
□ Social service records must include:
□ Inpatient, family members, and others’ interviews
□ Home plans assessment
□ Family attitudes
□ Community resources
□ Contacts
□ Social history
□ If indicated, a completed and recorded neurological exam, completed during the admission physical
Psychiatric Evaluation (Check if Yes)
□ Completed within 60 hours of admission
□ Medical history
□ Record of mental status
□ Illness onset noted and circumstances leading to admission
□ Attitudes and behavior described
□ Estimated intellectual and memory functioning and orientation
□ Inpatient inventory of assets are descriptive and not interpretive

Page 28 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Comprehensive Written Treatment Plan (Check if Yes)

□ An Individual plan based on inpatient strengths and disabilities
□ A substantiated diagnosis
□ Short- and long-term goals
□ Specific treatment modalities used
□ Responsibilities of each treatment team member
□ Adequate documentation justifying the diagnosis, treatment, and rehabilitation activities completed
□ Documented inpatient treatment to assure inclusion of all active therapeutic efforts

Recorded Progress (Check if Yes)

□ By the physician(s), psychologist(s), or other licensed independent practitioner(s)
□ Others significantly involved in active treatment modalities, when appropriate
□ Determine progress note frequency by the inpatient’s condition less than weekly during the first
2 months and at least once per month thereafter
□ Progress notes must have revision recommendations in the treatment plan, when necessary
□ Progress notes must include a precise patient assessment of treatment plan progress

Discharge Plan (Check if Yes)

□ Discharge Summary
□ Recap of patient’s hospital stay
□ Recommended patient follow-up and aftercare
□ Patient condition summary at discharge

Page 29 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

*Discharge Planning Evaluation, Plan, and Summary (Check if Yes)

□ Does the hospital have a discharge planning process that applies to all hospital patients?
□ Did you identify, early in the patient’s hospitalization, whether they’re likely to suffer adverse health
consequences if discharged without adequate discharge planning?
□ If yes, did you complete a discharge planning evaluation for them or was 1 requested by the
patient, representative, or physician?
□ Was the plan developed or supervised by an RN, social worker, or other appropriately qualified
staff member?
□ Did the evaluation include patient’s need for post-hospital services and their capacity for self-care
or the possibility of returning to their pre-hospital environment?
□ Was the planning evaluation timely to allow appropriate post-hospital arrangements?
□ Does the discharge planning evaluation in the patient’s medical record document the interaction
relaying the results of the evaluation to the patient or their representative?

* Identifies the newest discharge planning conditions of participation.

Page 30 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

*Standard Discharge Plan (Check if Yes)

□ Did an RN, social worker, or other appropriately qualified staff member develop or supervise the
development of the discharge plan if indicated in the evaluation?
□ If the evaluation showed no finding for a discharge plan, did the patient’s physician request it?
□ Did the hospital re-assess the patient’s discharge plan if factors affecting the patient’s continuing
care needs developed?
□ Did the hospital arrange to implement the patient’s discharge plan?
□ Did the patient, family, and interested persons get counseling to prepare them for post-hospital care?
□ Did the hospital include a discharge plan list of Medicare Program Home Health Agencies (HHAs)
(HHAs must request that the hospital list their service when available) and Skilled Nursing
Facilities (SNFs) serving that geographic area where the patient lives or in the case of a SNF, in
the requested geographic area?
□ Did you only present the list to the patient if they needed home health or post-hospital
extended care services as indicated in the discharge planning evaluation?
□ If the patient was enrolled in a managed care organization, did the hospital indicate those
services contracted with the managed care organizations?
□ Did you document in the medical record that the list was presented to the patient?
□ Did the hospital inform the patient and family of their freedom to choose among participating
Medicare providers’ post-hospital care services and respect the patient’s and family’s preference
(the hospital must not specify or limit qualified providers available)?
□ Did the hospital disclose any financial interest it may have in the HHA or SNF?

*Transfer or Referral (Check if Yes)

□ If you transferred or referred a patient, did you provide the medical information to appropriate
facilities, agencies, or outpatient services for follow-up or ancillary care?

* Identifies the newest discharge planning conditions of participation.

Page 31 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Coverage Period
Medicare covers IPF patients for psychiatric conditions in specialty facilities for 90 days per illness
with a 60-day lifetime reserve, and for 190 days of care in freestanding psychiatric hospitals (this
190-day limit doesn’t apply to certified psychiatric units). There are no further benefits once a patient
uses 190 days of psychiatric hospital care.
Under the IPF PPS, federal per diem rates include inpatient operating and capital-related costs
(including routine and ancillary services). CMS determines them by:
● Geographic factors
● Patient characteristics
● Facility characteristics

IPFs get additional payments for:

● Patients treated in IPFs with qualifying emergency department
● Number of ECT treatments provided
● Outlier cases (cases with extraordinarily high costs)
Find more information on how Medicare covers IPFs in Medicare Benefit Policy Manual, Chapter 2.

Same Day Billing Guidelines

Integrating mental health and substance use disorder services addresses the needs of all patients,
whether they get care in a traditional primary care setting or a specialty mental or substance use
disorder health care setting. Services include:
● Mental health care services (Medicare includes substance abuse treatment)
● Alcohol and substance abuse (other than tobacco) structured assessment, and intervention
services (SBIRT services) billed under HCPCS codes:
● G0396 (Alcohol and/or substance [other than tobacco] abuse structured assessment
[e.g., audit, dast], and brief intervention 15 to 30 minutes)
● G0397 (Alcohol and/or substance [other than tobacco] abuse structured assessment
[e.g., audit, dast], and intervention, greater than 30 minutes)
● Primary health care services

Medicare Part B pays reasonable and necessary integrated health care services provided on the
same day, to the same patient, by the same or different professionals whether the professionals are in
the same or different locations.
The Eligible Professionals section lists the providers eligible under Part B to provide diagnostic and
therapeutic treatment for mental, psychoneurotic, and personality disorders and Medicare SBIRT
services allowed under state law.

Page 32 of 33 MLN1986542 June 2021

Medicare Mental Health MLN Booklet

Medicare covers medically reasonable and necessary services or supplies to treat the patient’s
overall diagnosis and condition or improve a malformed body part. Services must meet the standards
of good medical practice for diagnosis, direct care, and treatment of the patient’s medical condition,
and not mainly the convenience of the patient, provider, or supplier.
Services must also meet specific medical necessity criteria defined by National Coverage
Determinations (NCDs) and Local Coverage Determinations (LCDs). Find more information on the
Medicare Coverage Determination Process webpage.
For every service billed, indicate the specific sign, symptom, or patient complaint showing the service
need. Although a provider may consider a service or test good medical practice, Medicare doesn’t
pay for services without patient symptoms, complaints, or specific documentation.
Medicare also pays for multiple mental health services to the same patient on the same day.
However, Medicare doesn’t pay for inappropriate or duplicate services on the same day. If you have
questions about local or national policies that may prevent you from billing for certain services,
contact your MAC.

Resources
● CMS Opioid Treatment Programs (OTPs)
● FY 2021 Inpatient Psychiatric Facilities Prospective Payment System (IPF PPS) and Special
Requirements for Psychiatric Hospitals
● Inpatient Psychiatric Facility Prospective Payment System
● Medicare Benefit Policy Manual, Chapters 2, 6, and 15
● Medicare Claims Processing Manual, Chapters 3 and 4
● Notices and Forms
● Quality Improvement Organizations
● Substance Abuse and Mental Health Services Administration (SAMHSA)

Medicare Learning Network® Content Disclaimer, Product Disclaimer, and Department of Health & Human Services Disclosure

The Medicare Learning Network®, MLN Connects®, and MLN Matters® are registered trademarks of the U.S. Department
of Health & Human Services (HHS).

Page 33 of 33 MLN1986542 June 2021