Medicare Blog

how are physical therapy servises reimbursed under medicare part a and partb

by Michelle Ruecker MD Published 2 years ago Updated 1 year ago
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When physical therapy happens during or after hospitalization, Medicare Part A covers the cost. On the other hand, Part B of Medicare pays for outpatient or at-home physical therapy. If you obtain physical therapy in a hospital, skilled nursing facility, outpatient physical therapy center, or home, you may be responsible for part of the cost.

Original Medicare covers outpatient therapy at 80% of the Medicare-approved amount. When you receive services from a participating provider, you pay a 20% coinsurance after you meet your Part B deductible ($233 in 2022).

Full Answer

Does Medicare reimburse for Part B physical and occupational therapy?

Medicare reimburses for Part B physical and occupational therapy services when the claim form and supporting documentation accurately report medically necessary covered services. Thus, developing legible and relevant documentation is only one piece of the reimbursement puzzle. Your documentation must also:

Does Medicare pay for physical therapy sessions?

Medicare Part B can cover the cost of physical therapy sessions. Medicare pays for physical therapy sessions under Medicare Part B. This portion of Medicare pays for preventive services, such as vaccinations, and medically necessary services.

What does Medicare Part B cover for rehabilitation?

Part B Rehab Therapy Billing Medicare Part B—a.k.a. medical insurance—helps cover medically necessary and/or preventive outpatient services, including lab tests; surgeries; doctor visits; and physical, occupational, and speech therapy treatment.

Are PTS allowed in Medicare Part B settings?

For Part B settings: PTs and, as of Jan. 1, 2021, PTAs, are permitted to provide skilled maintenance and rehabilitative treatment in Medicare Part B settings, including home health and SNFs.

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Is physical therapy reimbursed by Medicare?

Does Medicare Cover Physical Therapy? En español | Medicare will pay for physical therapy that a doctor considers medically necessary to treat an injury or illness — for example, to manage a chronic condition like Parkinson's disease or aid recovery from a fall, stroke or surgery.

What do Medicare Parts A and B pay for?

Part A (Hospital Insurance): Helps cover inpatient care in hospitals, skilled nursing facility care, hospice care, and home health care. Part B (Medical Insurance): Helps cover: Services from doctors and other health care providers.

Does Medicare cover DPT?

You may be eligible to receive physical therapy at home as part of your home health care services or as an outpatient service. Physical therapy is covered under Medicare Parts A and B, as long as it is prescribed by a physician or non-physician practitioner and is deemed medically necessary to treat your condition.

Can 97110 and 97150 be billed together?

The Physician appropriately bills each patient one Group Therapy code (97150) and 1 unit of therapeutic exercise (97110) corresponding to the time of the skilled one-on-one intervention with each patient.

How does Medicare reimburse physician services?

Traditional Medicare reimbursements Instead, the law states that providers must send the claim directly to Medicare. Medicare then reimburses the medical costs directly to the service provider. Usually, the insured person will not have to pay the bill for medical services upfront and then file for reimbursement.

What is not covered under Medicare Part A?

Medicare Part A will not cover long-term care, non-skilled, daily living, or custodial activities. Certain hospitals and critical access hospitals have agreements with the Department of Health & Human Services that lets the hospital “swing” its beds into (and out of) SNF care as needed.

How many PT sessions will Medicare pay for?

There's no limit on how much Medicare pays for your medically necessary outpatient therapy services in one calendar year.

How many therapy sessions does Medicare cover?

Although Medicare does not have a spending limit on physical therapy sessions, once the cost reaches $2,110, a person's healthcare provider will need to indicate that their care is medically necessary before Medicare will continue coverage.

What is included in Medicare Part A?

In general, Part A covers:Inpatient care in a hospital.Skilled nursing facility care.Nursing home care (inpatient care in a skilled nursing facility that's not custodial or long-term care)Hospice care.Home health care.

Can 97140 and 97110 be billed together?

Can CPT Code 97110 And 97140 Be Billed Together? Yes, they can be billed together. CPT 97110 and CPT 97140 can be performed on same day for same patient; instead, it is very common practice to use these codes together on same day.

What modifier is billed with 97110?

CQ modifierThe CQ modifier does apply to 97110 because the PTA furnished all minutes of that service independently.

Does 97150 need a modifier?

Bill as Follows: CPT code 97150 is billed with a CO modifier (for each patient) because the OTA's minutes represents 50 percent of the total time for the group therapy services.

What is Medicare Part B?

Medicare Part B—a.k.a. medical insurance —helps cover medically necessary and/or preventive outpatient services, including lab tests; surgeries; doctor visits; and physical, occupational, and speech therapy treatment. As with Part A, individuals become eligible to receive Medicare Part B insurance at age 65—or younger in cases of disability and end-stage renal failure. Unlike Part A, though, most beneficiaries pay a monthly premium (starting at $135.50 in 2019) for Part B. Then, once a patient meets his or her deductible ($185 this year), he or she will “typically pay 20% of the Medicare-approved amount for most doctor services…outpatient therapy, and durable medical equipment (DME).” So far, so good, right? Now let’s get into the tricky stuff:

What is Part B in home health?

Beyond the first 100 days, Part B covers the payments. Additionally, home health therapists can only bill outpatient (Part B) home health services if patients are not "not homebound or otherwise are not receiving services under a home health plan of care.".

What is the CPT code for group therapy?

The CPT code for group therapy—97150 —denotes skilled treatment by the therapist that is not one-on-one. When billing for group therapy under Part B—unlike Part A—the patients in the group do not require the same or similar diagnoses and they do not need to be doing the same or similar activities.

Does Medicare pay for skilled nursing?

In compliance with the Balanced Budget Act of 1997, Medicare bundles payments for most services provided in a Medicare-covered skilled nursing facility (SNF), which it then pays the SNF. That means providers in SNFs must bill Medicare—specifically, their Part A Medicare Administrative Contractor—in a consolidated bill, because the SNF is responsible for billing the “entire package of care that residents receive during a covered Part A SNF stay and physical, occupational, and speech therapy services received during a non-covered stay.” For more information, check out this CMS page or this one.

Can a physical therapist be a Medicare beneficiary?

If you’re in private practice—and you accept Medicare beneficiaries as a physical therapist, occupational therapist, or speech therapist in private practice— then you provide services that fall under Medicare Part B. However, if in doubt, always refer to your Medicare contract. (As a note, Part B is billed under the practice and therapist NPIs.)

Does Medicare cover outpatient rehab?

If you’re an outpatient rehab therapist, it’s especially “important to note that Medicare does not cover Medicare Part B services for patients who are receiving Part A services. Thus, be sure to ask all patients about concurrent care.”.

Is CMS using the same definition for group therapy?

With encouragement from the APTA, CMS is now using the same definition for group therapy in both SNF and inpatient rehabilitation settings: “two to six patients doing the same or similar activities.” According to the APTA, that means CMS is no longer using the “rigid 4-person definition.” Furthermore, CMS “believes aligning the group therapy definition serves to improve the agency’s consistency in payment policies across PAC settings, and to create opportunities for site neutral payments.”

Spotlight

The Therapy Services webpage is being updated, in a new section on the landing page called “Implementation of the Bipartisan Budget Act of 2018”, to: (a) Reflect the KX modifier threshold amounts for CY 2021, (b) Add more information about implementing Section 53107 of the BBA of 2018, and (c) Note that the Beneficiary Fact Sheet has been updated.

Implementation of the Bipartisan Budget Act of 2018

This section was last revised in March 2021 to reflect the CY 2021 KX modifier thresholds. On February 9, 2018, the Bipartisan Budget Act of 2018 (BBA of 2018) (Public Law 115-123) was signed into law.

Other

On August 16, 2018, CMS issued a new Advance Beneficiary Notice of Noncoverage (ABN) Frequently Asked Questions (FAQ) document to reflect the changes of the Bipartisan Budget Act of 2018. Please find the document in the below Downloads section titled: “August 2018 ABN FAQs”.

What happens after a physical therapist completes a physical therapy visit?

At this time, the therapist may release the individual from further physical therapy. Alternatively, the referring doctor may recommend participating in additional sessions.

What is the process of creating a physical therapy plan?

The process of creating and maintaining a physical therapy plan may include the following steps: A physical therapist evaluates the person who needs physical therapy and creates a plan of care. This plan includes a recommended number of sessions, treatment types, and treatment goals.

How much does physical therapy cost on Medicare?

Although Medicare does not have a spending limit on physical therapy sessions, once the cost reaches $2,080, a person’s healthcare provider will need to indicate that their care is medically necessary.

What is an example of a woman with Medicare?

Here is an example: A woman with Medicare was in a car accident and injured her knee. Her doctor recommended physical therapy to improve her strength and range of motion. She participated in the recommended physical therapy sessions and made improvements in strength but had not fully reached her goals for mobility.

What is the difference between coinsurance and deductible?

Coinsurance: This is a percentage of a treatment cost that a person will need to self-fund. For Medicare Part B, this comes to 20%.

Does Medicare consider progress in physical therapy?

Treatment progress is not the only consideration when Medicare evaluates continued funding for an individual’s physical therapy. For example, Medicare requires a physical therapist to recertify that physical therapy is medically necessary after the total costs for therapy exceed $2,080.

Medicare Part B Reimbursements in Recent Decades

In the 1990s, the Office of Inspector General detected fraudulent activity at nursing homes in the form of excessive billing and charges for unused supplies. The Benefits Improvement and Protection Act of 2000 limited the consolidated billing requirement to Medicare services not covered by Part A.

How to Fill Out Medicare Part B Reimbursements Forms

Some seniors and disabled individuals are automatically enrolled in Medicare Part B, while others must sign up for it, which can either be done online or by mail .

Who Pays for Medicare Part B coverage?

Medicare Part B reimbursement occurs after the deductible has been met.

Summary

Medicare Part B pays for up to 80% of the costs of physical therapy, occupational therapy, and speech-language pathology in long term care facilities. However, it is up to the facility to document the services it provides. Further, it is up to elders to opt into Medicare Part B and submit their forms.

How often does a PTA therapist have to reassess?

In addition to supervising the services provided by the PTA, the qualified therapist is still responsible for the initial assessment, plan of care, maintenance program development and modifications, and reassessment every 30 days. See more on Medicare payment for home health.

What is medically necessary?

Medically necessary services can be rehabilitative, maintenance, or slowing of decline, based on the physical therapist's ability to justify that they are reasonable and necessary and require the skills of the physical therapist. It is considered skilled to instruct caregivers and to periodically determine if they are carrying out an unskilled ...

Does Medicare cover skilled maintenance therapy?

Medicare Coverage Issues. Skilled Maintenance Therapy Under Medicare. Medicare does indeed cover services to maintain or manage a beneficiary's current condition when no functional improvement is possible. There has been a longstanding myth that Medicare does not cover services to maintain or manage a beneficiary's current condition ...

Is skilled maintenance covered by Medicare?

"Medical necessity" and "maintenance" do not mean the same thing. Medical necessity is required for all services covered under Medicare, as is the requirement that the services be skilled.

Is it necessary to do rehabilitation before maintenance?

It is not necessary to establish rehabilitation or restorative therapy prior to the maintenance program, as long as the documentation justifies the need for skilled therapy to maintain function, or prevent or slow deterioration.

How long does it take for Medicare to recertify?

And even when things do go according to plan, Medicare requires recertification after 90 days of treatment. If you’re a WebPT Member, you can use WebPT’s Plan of Care Report to identify which plans of care are still pending certification as well as which ones require certification—before those 90 days are up.

What is a POC in therapy?

The Plan of Care (POC) Based on the assessment, the therapist then must create a POC —complete with treatment details, the estimated treatment time frame, and the anticipated results of treatment. At minimum, Medicare requires the POC to include: Medical diagnosis. Long-term functional goals.

How long does it take to sign a POC?

Medicare requires that a licensed physician or nonphysician practitioner (NPP) date and sign the POC within 30 days. To make things easier, though, the certifying physician doesn’t have to be the patient’s regular physician—or even see the patient at all (although some physicians do require a visit).

How long does it take for Medicare to discharge a patient?

Medicare automatically discharges patients 60 days after the last visit. Unfortunately, if the patient has been discharged, then you will need to perform a new initial evaluation. If you do not live in a direct access state, then you will also need to to get the physician's signature on the patient's new POC.

What is the evaluation of a licensed therapist?

Before starting treatment, the licensed therapist must complete an initial evaluation of the patient, which includes: Objective observation (e.g., identified impairments and their severity or complexity) And, of course, all of this should be accounted for you in your documentation.

How long do you have to recertify a patient?

If this occurs, you'll need to obtain a recertification from the physician. And no matter what, you must obtain a recertification after 90 days. So, to answer your first question, no—there is no rule that you must send the patient back to the referring physician after 10 visits.

How often do you need a progress note for Medicare?

Currently, Medicare only requires a progress note be completed, at minimum, on every 10th visit. I hope that helps!

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