Psychedelic therapies will soon have their own CPT code

The American Medical Association (AMA) approved a current procedural terminology (CPT) III code for psychedelic therapies this week, which proponents called a step forward for improving access to the class of drugs that treats conditions like post-traumatic stress disorder (PTSD) and depression.

Medical professionals use CPT codes in electronic health records to track medical services and procedures for reimbursement. CPT III codes are used to track new, emerging treatments that aren’t yet FDA approved. The codes allow providers to seek reimbursement for treatments that are still in investigational phases (though payment is up to the payer’s discretion), and can be used to collect data to help in the FDA approval process.

The AMA is expected to release full details of the CPT III code for psychedelic therapies in July, and the code will be effective Jan. 1, 2024.

FDA approval for some psychedelic therapies could also be right around the corner. In May 2022, the assistant secretary for mental health and substance use said the Biden administration expects the FDA to approve MDMA, commonly known as ecstasy, to treat PTSD, and psilocybin, or magic mushrooms, to treat depression, within two years, The Intercept reported.

Plus, the Multidisciplinary Association for Psychedelic Studies (MAPS)—a nonprofit that sponsors clinical trials of psychedelics—planned to apply for FDA approval of MDMA as a PTSD treatment and could get approval as soon as 2024, Time reported.

Establishing a CPT III code “is a major step forward to enabling broad and equitable access to psychedelic therapies,” Compass Pathways CEO Kabir Nath said in a statement.

The mental healthcare company, along with MAPS, said it submitted the application for the CPT III code to the AMA. Both companies are developing psychedelics to treat people with mental health conditions.

“Psychedelic-assisted therapies represent a potential new frontier in the treatment of mental health conditions,” MAPS CEO Amy Emerson said in the statement.