Medicare Blog

describe what the medicare cap is and how it impacts the physical therapy profession.

by Dr. Edgar Daugherty Published 2 years ago Updated 1 year ago

In 2017, the cap was $1,980 for physical therapy and speech-language pathology services combined. However, Congress repealed the Medicare therapy cap in 2018, allowing more Medicare beneficiaries to be able to afford physical therapy and other services.Jul 3, 2018

What is Medicare cap?

A CAP is a narrative of steps taken to identify the most cost effective actions that can be implemented to correct errors causes. Following each measurement cycle, States included in the measurement are required to develop and submit a separate Medicaid and CHIP CAP designed to reduce improper payments in each program.

What is the Medicare Cap 2021?

For 2021 this KX modifier threshold amount is: $2,110 for PT and SLP services combined, and. $2,110 for OT services.

How does MPPR affect occupational therapy?

MPPR reduces the reimbursement for any subsequent unit of service performed after the first unit for a given code and decreases the practice expense component of the code by 50%. Not all services will receive an MPPR, but some labeled “always therapy” services will.

How does Medicare reimburse physical therapy?

Medicare Part B covers outpatient PT when it's medically necessary. Medically necessary means that the PT you're receiving is required to reasonably diagnose or treat your condition. There's not a cap on the PT costs that Medicare will cover.

How much is the Medicare cap?

Between 2018 and 2028, the targeted medical review threshold is $3,000 for combined PT and SLP services and $3,000 for OT services. Services above $3,000 may be subject to targeted medical review.

Is physical therapy covered by Medicare?

Yes. Physiotherapy can be covered by Medicare so long as it's a chronic and complex musculoskeletal condition requiring specific treatment under the CDM. Medicare coverage for physiotherapy for chronic and complex conditions covers 85% of a $62.50 service for a rebate of $54.60, as of November 2020.

How much is the MPPR reduction?

The MPPR policy implements a 50% payment reduction to the practice expense value of certain CPT codes deemed "always therapy services."

What are always therapy codes?

According to CMS, certain codes are 'Always Therapy' services no matter who performs them and require a therapy modifier (GP, GO, or GN) to indicate they are provided under physical therapy, occupational therapy, or speech-language pathology plan of care.

What is a 51 modifier?

The additional procedure(s) or service(s) may be identified by appending modifier 51 to the additional procedure or service code(s).” In other words, modifier 51 reports that a physician performed two or more surgical services during one treatment session.

What is the Medicare cap for 2022?

In 2022, Original Medicare covers up to: $2,150 for PT and SLP before requiring your provider to indicate that your care is medically necessary. And, $2,150 for OT before requiring your provider to indicate that your care is medically necessary.

Does Medicare pay for physical therapy at home?

Medicare Part B medical insurance will cover at home physical therapy from certain providers including private practice therapists and certain home health care providers. If you qualify, your costs are $0 for home health physical therapy services.

How much is physical therapy without insurance?

$75 – $150 (Without Insurance) Physical therapy costs from $20 to $150 per session on average depending on the extent of your injury and if you have insurance coverage. With insurance, rates range from a $20 to $55 co-pay after you've paid your deductible, and between $75 to $150 if you're paying without insurance.

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