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AMA fee FAQs


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AMA fee FAQs

Sarada
Sarada
  • Updated
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AMA fee FAQs

Sarada
Sarada
  • Updated

On August 19, 2024, we emailed our customers about an additional fee we’ll be charging for the use of CPT® codes in SimplePractice starting in December 2024. 

In this guide, we’ll answer:

Why am I being charged an AMA fee?

Current Procedural Terminology (CPT) codes are developed and managed by the American Medical Association (AMA). The AMA owns the rights to all CPT codes and charges a royalty for all clinicians, regardless of usage. As CPT codes are accessible in our software, the AMA charges SimplePractice a royalty for each clinician that uses SimplePractice.

For more information on the AMA CPT pricing schedule, see the AMA’s site on Standard CPT Pricing Schedule 2024.

In order to provide ongoing access to these codes, we will be adding an annual fee of $20 per clinician to your SimplePractice account. This fee includes an $18 CPT royalty charge from the AMA and a $2 processing fee.

This year, the fee for 2024 will be charged on your December 2024 invoicing date. Going forward, you will be billed annually each December on your invoicing date.

Do other EHRs charge royalties for CPT code access?

We cannot speak to how other EHRs manage CPT code royalties. For additional details about the costs associated with CPT licensing, see the AMA’s site on Standard CPT Distribution Pricing Schedule 2024.

When will I be charged the AMA fee?

This year, the fee for 2024 will be charged on your December 2024 invoicing date. Going forward, you will be billed annually each December on your invoicing date. The month during which the fee will be charged cannot be changed and applies to all SimplePractice clinicians.

Do I have to use CPT codes for insurance?

CPT codes are the standard codes used when submitting insurance claims. For specific questions about service codes each insurance payer accepts, we recommend contacting the payer directly.

If I don't do insurance billing, will I still be charged?

All clinicians who are using SimplePractice as of October 31, 2024 will be billed the AMA fee regardless of whether they do insurance billing or whether clinicians are located in Canada or USA. This replicates exactly how SimplePractice is billed by the AMA. These codes are also a vital tool for accurate out-of-network billing and coding, as well as for facilitating communication in a common language when used in clinical documentation, and are embedded throughout the entire SimplePractice platform.

Who will be charged the AMA fee and does it apply to all subscription tiers?

Every paid SimplePractice clinician on any of our subscription plans will be charged the AMA fee once per year.

Is the AMA fee per practice or per clinician?

The AMA fee is $20 per clinician per year. 

Will I be charged sales tax for the AMA fee?

Sales tax for the fee will be charged based on taxability of the product in your billing address jurisdiction.

Can I pay the AMA directly?

You can pay the AMA for a CPT license directly, but this license will not cover usage of CPT codes within SimplePractice. The AMA charges SimplePractice a CPT royalty for each clinician that uses SimplePractice, and this royalty covers the usage of CPT codes within our product.

I use CPT codes with other billing tools besides SimplePractice. Will I be charged by each billing tool I use?

We cannot speak to how other billing software and solutions plan to manage these royalties. For SimplePractice accounts, each clinician will be charged an annual $20 fee. 

Are the codes I'm paying for available in SimplePractice?

Yes, the CPT codes from the AMA are automatically available to use in SimplePractice. For more information on using CPT codes, see Creating and using service codes and products.

Will my practice manager, billers, schedulers, and supervisors also be charged?

No. You’ll only be charged for members of your practice who have a clinician role in SimplePractice.

I have interns in my practice. Will they also be charged the fee?

The fee is charged to anyone who has a clinical role in SimplePractice, so if an intern is assigned a clinician role in your account, you’ll be charged for them. 

How is the fee calculated for a group practice?

The 2024 fee is based on the total number of clinicians in your SimplePractice account as of October 31, 2024, which you’ll see reflected on your invoice in December 2024. Starting in 2025, the annual fee will be based on the number of clinicians on your account as of your December billing date. 

Does the fee change if I’m a group practice and one of my clinicians leaves?

In 2024, you’ll be charged based on the number of clinicians on your SimplePractice account as of October 31, 2024. As an example, in 2024, if you have 7 clinicians in September but only 5 clinicians as of October 31, 2024, you’ll be charged the AMA fee for 5 clinicians on your December billing date. Starting in 2025, you’ll be charged for the total number of clinicians on your SimplePractice account as of your December billing date.

I don’t see many clients and only process several claims a month. Do I have to pay the full annual fee?

Yes, the AMA sets the CPT royalty as an annual charge per clinician regardless of how much the CPT codes are used. 

Can I opt out of the AMA fee?

No, since the AMA is charging SimplePractice for the use of CPT codes for all clinicians, it’s not possible to opt out of the fee.

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