Changes passed by Congress in the Medicare Improvements for Patients and Providers Act (MIPPA) in July of 2008 made an important change to how Medicare pays for mental health services.  Unfortunately, the changes are not immediately effective.

Currently, there is a 50% co-payment for most mental health services to Medicare patients, instead of the 20% co-payment for other physician services.  The MIPPA law will reduce the co-payment amount by 5% each year through 2013, and set the rate at 20% in 2014.  It has been a long time coming!