Behavioral and Developmental Disorders: Inpatient Reimbursement Overview

DRG 886 encompasses inpatient stays for behavioral and developmental disorders, focusing on psychiatric and developmental conditions that drive resource needs during hospitalization. Proper classification into DRG 886 affects Medicare inpatient reimbursement by aligning payments with expected resource use for these clinical presentations.

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DRG 886 Overview

DRG 886 covers hospital admissions for primary behavioral and developmental disorders, including acute psychiatric presentations, severe mood and anxiety disorders, psychotic disorders, and developmental conditions when the primary reason for inpatient care is behavioral or developmental. This Diagnosis-Related Group groups cases with similar clinical complexity and resource use to determine Medicare inpatient reimbursement. It matters for Centers for Medicare & Medicaid Services payment because classification into DRG 886 influences base payment and any adjustments related to patient age, comorbidities, and hospital characteristics. Accurate clinical coding and documentation are essential for correct assignment to DRG 886.

National Payment Rates

Across commercial payers the observed rates range from roughly $370 up to $54K, with payer medians spanning about $630 to $32K; the widest spread is between BCBS/Anthem medians near the low thousands and Aetna/Cigna medians in the tens of thousands. Refer to the table and chart below for payer-level percentiles and distribution details. This span indicates substantial variation in negotiated commercial rates across payers.

The CMS 2023 data reflect national Medicare fee-for-service inpatient payments reported under the CMS Provider Utilization and Payment Data program. The table below shows average total payment, average submitted covered charges, average Medicare payment amount, and total discharges for DRG 886. These values summarize payment and charge levels and the volume of discharges for Medicare beneficiaries in 2023.

Average Total Payment	Average Submitted Charges	Average Medicare Payment	Total Discharges
$14K	$60K	$10K	220

Patient Population

The patient population for DRG 886 includes both Medicare-age beneficiaries and working-age individuals covered by commercial plans, representing a mixed-age cohort. Medicare claims in the CMS dataset reflect older adults on fee-for-service, while the commercial payer benchmarks capture working-age and employer-sponsored coverage. Overall this DRG’s population is mixed between Medicare-age and working-age patients rather than being exclusively Medicare-age.

State Payment Rates

State: Alaska1 / 49

Alaska Benchmarks

Alaska’s reimbursement for DRG 886 spans a broad range from a low around $2.5K (Anthem) up to $57K (Cigna), with mean payments clustering between $22K and $38K across major payers. Cigna stands out with substantially higher mean and max values compared with Anthem and BCBS, creating the largest deviation from national median patterns. Reference the table and chart below for payer-level percentiles and distribution details.

Key Insights for Alaska

Highest payer: Cigna (max $57K, mean $38K, median $33K) is the top-paying payer in Alaska; Lowest payer: Anthem shows the lowest central tendency (mean $22K, median $20K) and a very low minimum ($2.5K).
Alaska’s payer range is wide ($2.5K to $57K) driven by Cigna’s high ceiling and Anthem’s low floor; overall mean levels in AK (Cigna mean $38K, BCBS mean $24K, Anthem mean $22K) sit above several national payers’ means, indicating generally higher regional reimbursement for this DRG.

Clinical Trials

Acute pharmacological and behavioral intervention trials in inpatient psychiatric units: these studies evaluate short-term efficacy and safety of medications or structured behavioral programs initiated during psychiatric hospitalization for severe behavioral and developmental disorders (for example, acute agitation, self-injurious behavior, or severe mood/psychotic symptoms in individuals with autism spectrum disorder or intellectual disability). The patient population typically includes adolescents and adults admitted for crisis stabilization with comorbid developmental or behavioral diagnoses, and the trials measure symptom reduction, safety, and time to discharge. Results inform clinicians about which immediate interventions improve stabilization and shorten length of stay, and help payers assess inpatient resource utilization and appropriate coverage for acute treatments.
Comparative effectiveness studies of multidisciplinary inpatient care models versus standard care: these research projects compare structured, team-based approaches (for example, integrated psychiatry, psychology, occupational therapy, and behavioral supports) to usual inpatient management for children and adolescents with complex behavioral and developmental disorders. Populations studied often have high acuity, frequent prior admissions, or co-occurring medical conditions, and outcomes include functional improvement, readmission rates, and transition readiness. Findings guide providers on which care models yield better clinical and functional outcomes and help payers determine which inpatient programs deliver value through reduced readmissions and downstream costs.
Post-discharge transition and long-term outcomes research: longitudinal studies examine discharge planning strategies, community placement effectiveness, and long-term functional and health-economic outcomes for patients hospitalized with behavioral and developmental disorders, including rates of community integration, school or vocational engagement, and recurrent inpatient utilization. These studies follow children, adolescents, or adults after discharge to identify predictors of successful transition and the impact of specific follow-up services (like intensive outpatient programs or home-based behavioral supports). Evidence from this research helps providers design discharge processes that reduce relapse and supports payers in structuring benefits and care-management programs that lower total cost of care and improve sustained outcomes.

O.R. Procedures with Principal Diagnosis of Mental Illness: Inpatient Reimbursement Overview

880-ACUTE-ADJUSTMENT-REACTION-AND-PSYCHOSOCIAL-DYSFUNCTION

Acute Adjustment Reaction and Psychosocial Dysfunction: Inpatient Reimbursement Overview

881-DEPRESSIVE-NEUROSES

Depressive Neuroses: Inpatient Reimbursement Overview

882-NEUROSES-EXCEPT-DEPRESSIVE

Neuroses Except Depressive: Inpatient Reimbursement Overview

883-DISORDERS-OF-PERSONALITY-AND-IMPULSE-CONTROL

Disorders of Personality and Impulse Control: Inpatient Reimbursement Overview

884-ORGANIC-DISTURBANCES-AND-INTELLECTUAL-DISABILITY

Organic Disturbances and Intellectual Disability: Inpatient Reimbursement Overview

885-PSYCHOSES

Psychoses: Inpatient Reimbursement Overview

887-OTHER-MENTAL-DISORDER-DIAGNOSES

Other Mental Disorder Diagnoses: Inpatient Reimbursement Overview

References

1.CPT® Codes and Descriptions. AAPC. Retrieved Aug 11, 2026.Maintains the CPT code set's official descriptions and guidelines, licensed from the American Medical Association, used as the definitional source for CPT codes on this page.
2.HCPCS Quarterly Update. Centers for Medicare & Medicaid Services (CMS). Retrieved Aug 11, 2026.CMS's quarterly release of HCPCS Level II codes and short/long descriptors, the source for HCPCS code definitions and update history.
3.ICD-10-CM Full Code List. Centers for Medicare & Medicaid Services (CMS). Retrieved Aug 11, 2026.CMS's complete ICD-10-CM diagnosis code list, used to cross-reference diagnosis codes associated with this procedure or service.

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National Payment Rates

Mean Rates by Payer — National — DRG 886

Average Total Payment	Average Submitted Charges	Average Medicare Payment	Total Discharges
$14K	$60K	$10K	220

Patient Population

State Payment Rates

State: Alaska1 / 49

Alaska Benchmarks

Mean Rates by Payer — Alaska — DRG 886

Key Insights for Alaska

Highest payer: Cigna (max $57K, mean $38K, median $33K) is the top-paying payer in Alaska; Lowest payer: Anthem shows the lowest central tendency (mean $22K, median $20K) and a very low minimum ($2.5K).
Alaska’s payer range is wide ($2.5K to $57K) driven by Cigna’s high ceiling and Anthem’s low floor; overall mean levels in AK (Cigna mean $38K, BCBS mean $24K, Anthem mean $22K) sit above several national payers’ means, indicating generally higher regional reimbursement for this DRG.

Clinical Trials

Acute pharmacological and behavioral intervention trials in inpatient psychiatric units: these studies evaluate short-term efficacy and safety of medications or structured behavioral programs initiated during psychiatric hospitalization for severe behavioral and developmental disorders (for example, acute agitation, self-injurious behavior, or severe mood/psychotic symptoms in individuals with autism spectrum disorder or intellectual disability). The patient population typically includes adolescents and adults admitted for crisis stabilization with comorbid developmental or behavioral diagnoses, and the trials measure symptom reduction, safety, and time to discharge. Results inform clinicians about which immediate interventions improve stabilization and shorten length of stay, and help payers assess inpatient resource utilization and appropriate coverage for acute treatments.
Comparative effectiveness studies of multidisciplinary inpatient care models versus standard care: these research projects compare structured, team-based approaches (for example, integrated psychiatry, psychology, occupational therapy, and behavioral supports) to usual inpatient management for children and adolescents with complex behavioral and developmental disorders. Populations studied often have high acuity, frequent prior admissions, or co-occurring medical conditions, and outcomes include functional improvement, readmission rates, and transition readiness. Findings guide providers on which care models yield better clinical and functional outcomes and help payers determine which inpatient programs deliver value through reduced readmissions and downstream costs.
Post-discharge transition and long-term outcomes research: longitudinal studies examine discharge planning strategies, community placement effectiveness, and long-term functional and health-economic outcomes for patients hospitalized with behavioral and developmental disorders, including rates of community integration, school or vocational engagement, and recurrent inpatient utilization. These studies follow children, adolescents, or adults after discharge to identify predictors of successful transition and the impact of specific follow-up services (like intensive outpatient programs or home-based behavioral supports). Evidence from this research helps providers design discharge processes that reduce relapse and supports payers in structuring benefits and care-management programs that lower total cost of care and improve sustained outcomes.

O.R. Procedures with Principal Diagnosis of Mental Illness: Inpatient Reimbursement Overview

880-ACUTE-ADJUSTMENT-REACTION-AND-PSYCHOSOCIAL-DYSFUNCTION

Acute Adjustment Reaction and Psychosocial Dysfunction: Inpatient Reimbursement Overview

881-DEPRESSIVE-NEUROSES

Depressive Neuroses: Inpatient Reimbursement Overview

882-NEUROSES-EXCEPT-DEPRESSIVE

Neuroses Except Depressive: Inpatient Reimbursement Overview

883-DISORDERS-OF-PERSONALITY-AND-IMPULSE-CONTROL

Disorders of Personality and Impulse Control: Inpatient Reimbursement Overview

884-ORGANIC-DISTURBANCES-AND-INTELLECTUAL-DISABILITY

Organic Disturbances and Intellectual Disability: Inpatient Reimbursement Overview

885-PSYCHOSES

Psychoses: Inpatient Reimbursement Overview

887-OTHER-MENTAL-DISORDER-DIAGNOSES

Other Mental Disorder Diagnoses: Inpatient Reimbursement Overview

References

1.CPT® Codes and Descriptions. AAPC. Retrieved Aug 11, 2026.Maintains the CPT code set's official descriptions and guidelines, licensed from the American Medical Association, used as the definitional source for CPT codes on this page.
2.HCPCS Quarterly Update. Centers for Medicare & Medicaid Services (CMS). Retrieved Aug 11, 2026.CMS's quarterly release of HCPCS Level II codes and short/long descriptors, the source for HCPCS code definitions and update history.
3.ICD-10-CM Full Code List. Centers for Medicare & Medicaid Services (CMS). Retrieved Aug 11, 2026.CMS's complete ICD-10-CM diagnosis code list, used to cross-reference diagnosis codes associated with this procedure or service.

Published by

Trek Health powers OpenPayer with a leading commercial payer intelligence platform, seamlessly converting fragmented payer data into actionable insights for provider organizations.

Behavioral and Developmental Disorders: Inpatient Reimbursement Overview

Sign up for drg 886 policy alerts

DRG 886 Overview

Behavioral and Developmental Disorders: Inpatient Reimbursement Overview

Sign up for drg 886 policy alerts

DRG 886 Overview

National Payment Rates

Patient Population

State Payment Rates

Alaska Benchmarks

Key Insights for Alaska

Clinical Trials

Related Codes

References

National Payment Rates

Patient Population

State Payment Rates

Alaska Benchmarks

Key Insights for Alaska

Clinical Trials

Related Codes

References