In a move that signals a major shift in how the federal government prioritizes preventive medicine, the Centers for Medicare and Medicaid Services (CMS) has unveiled a proposal that could fundamentally alter the economics of the doctor-patient relationship. Buried within a massive 1,592-page document detailing the proposed changes to Medicare’s physician fee schedules for the upcoming year is a provision that health advocates have sought for decades: a 19% increase in reimbursement rates for physicians who provide counseling on quitting cigarettes, tobacco products, and the misuse of alcohol or other substances. This adjustment is not merely a technical update to a spreadsheet; it represents a strategic attempt to leverage the financial machinery of the American healthcare system to tackle the leading causes of preventable death and disability in the United States.
Tobacco use remains the primary driver of preventable mortality in the U.S., claiming approximately 480,000 lives annually and costing the economy more than $600 billion in healthcare expenses and lost productivity. Despite the well-known risks, millions of Americans struggle to quit, often trapped in a cycle of addiction that is reinforced by the lack of structured support from their primary care providers. Similarly, alcohol-related deaths have surged in recent years, exceeding 178,000 annually, according to the Centers for Disease Control and Prevention (CDC). By offering a nearly 20% pay bump for counseling sessions related to these issues, CMS is acknowledging that the current system undervalues the "clinical intensity" and the significant time required for a physician to guide a patient through the complex psychological and physiological process of cessation.
The proposal from CMS explains the rationale clearly: “Given the evidence-supported role these services play in preventing and managing chronic disease […] we believe that valuation should more accurately reflect the clinical intensity and work associated with these time-based services.” This statement highlights a long-standing grievance among primary care physicians and internal medicine specialists. For years, the reimbursement for tobacco cessation counseling has hovered around a meager $10 per session. In the high-pressure environment of a modern medical practice, where doctors are often allocated only 15 to 20 minutes per patient, a $10 payment does little to incentivize a deep, nuanced conversation about addiction. Instead, these critical interventions are frequently relegated to an afterthought or a brief, ineffective suggestion to "just quit."
Anne DiGiulio, the American Lung Association’s senior director of nationwide tobacco cessation and health policy, expressed a sentiment shared by many in the public health community. “The prioritization of cessation as a service is long overdue, and we’re very excited about it,” she noted. The enthusiasm stems from the understanding that while most smokers want to quit, the vast majority who attempt to do so without professional help fail. Data from the CDC indicates that the success rate for those attempting to quit "cold turkey" or without clinical support is under 10%. However, when behavioral counseling is combined with FDA-approved cessation medications—such as varenicline (formerly marketed as Chantix), bupropion, or nicotine replacement therapies like patches and gum—the odds of long-term success increase dramatically.
Despite this evidence, the "gold standard" of combining medication with counseling is rarely achieved in practice. In 2022, CDC data revealed that only 5% of people who had recently attempted to quit smoking had received both behavioral support and medication. The gap between clinical knowledge and patient care is a chasm that CMS hopes to bridge with higher reimbursement. If a physician feels that their time is being fairly compensated, they are more likely to engage in "structured conversations" that explore a patient’s specific triggers, their motivations for quitting, and the pharmacological options available to mitigate withdrawal symptoms.
The implications of this policy change extend far beyond the millions of Americans currently enrolled in Medicare and Medicaid. Dr. Ned Sharpless, a former director of the National Cancer Institute and current professor of cancer policy and innovation at the University of North Carolina School of Medicine, points out that CMS is the "behemoth" of the American healthcare landscape. Because Medicare and Medicaid cover roughly two out of every five Americans, their fee schedules serve as the benchmark for the entire industry. Private insurance companies almost universally follow the lead of CMS. If Medicare increases the value of a specific service, private insurers typically adjust their own reimbursement rates to remain competitive and aligned with national standards.
Sharpless, who has spent years advocating for this change across both the Biden and Trump administrations, described the proposal as a long-awaited victory for preventive oncology. “We have something to offer these patients,” Sharpless said. “And we need to incentivize doctors to do this.” He noted that the current $10 reimbursement is essentially a deterrent. While a 19% increase won’t make any physician "rich," it moves the service toward a level of parity with other medical procedures, making it a viable part of a sustainable practice model rather than a financial loss leader.
The proposal also addresses the often-overlooked "alcohol epidemic" hiding in plain sight. Alcohol screening and brief intervention (SBI) is a proven method for reducing risky drinking behavior, yet it remains chronically underutilized. A study highlighted by the National Institute on Alcohol Abuse and Alcoholism (NIAAA) found that while 70% of patients are asked about their alcohol consumption during a doctor’s visit, only 12% receive any form of brief intervention, and a mere 5% are given a referral to specialized treatment. By including alcohol and substance misuse in the reimbursement hike, CMS is attempting to normalize these screenings as a standard part of primary care, equivalent in importance to checking blood pressure or cholesterol levels.
However, some experts warn that money alone may not be the silver bullet. Adam Goldstein, a professor and director of tobacco intervention programs at the UNC School of Medicine, argues that the absolute dollar increase, while meaningful, may not be enough to trigger a systemic overhaul of how practices operate. “Most clinicians recognize tobacco use as an important health issue, but what patients receive often amounts to a brief statement such as, ‘You should quit,’ rather than an evidence-based treatment plan,” Goldstein observed. He believes that for the pay bump to have its maximum impact, it must be paired with structural changes within the healthcare delivery system. This includes the integration of "tobacco treatment specialists"—professionals akin to diabetes educators—who can handle the intensive follow-up care that a primary physician may not have the capacity to provide.
Goldstein suggests that the most effective model would involve a "team-based" approach. This would include reliable tobacco-use screening built into electronic health records (EHRs), standing protocols that allow nurses to initiate medication discussions, and robust referral systems to state quitlines. The goal is to move away from a model where the doctor is the sole provider of cessation advice and toward a system where the entire practice is oriented toward addiction recovery.
Tim Clement, vice president of federal government affairs at Mental Health America, echoed these concerns regarding alcohol and substance use interventions. While he agreed that low reimbursement is a significant barrier, he noted that other factors—such as the stigma surrounding addiction and a lack of training in motivational interviewing—also play a role. A pay bump is a necessary first step, but it must be part of a broader strategy to integrate behavioral health into primary care settings.
The public now has until September 14 to submit comments on the proposed fee schedule. If finalized, the changes would likely take effect in the 2025 or 2026 fiscal year, depending on the final administrative timeline. For public health advocates, the proposal is a rare moment of optimism in the ongoing battle against chronic disease. It acknowledges that the "cognitive work" of a physician—the act of talking, listening, and counseling—is just as valuable as the "procedural work" of surgery or diagnostic testing.
In the words of Dr. Sharpless, the shift is a "step in the right direction" that could save thousands of lives by simply making it financially feasible for a doctor to do the right thing. As the healthcare system continues to pivot toward value-based care, the emphasis on prevention over treatment is becoming the new standard. By rewarding doctors for helping patients quit smoking and manage alcohol use, CMS is investing in a future where the most common causes of death are treated before they ever result in a hospital admission. “Every once in a while,” Sharpless said, “it’s good to have a good story.” For millions of Americans struggling with addiction, this "good story" in the federal register could be the catalyst for a healthier, longer life.

