Medicare Blog

how does medicare determine the therapy cap based on diagnosis

by Ewald Zieme Published 2 years ago Updated 1 year ago
image

What are the Medicare therapy Threshold limits for 2021?

For CY 2021 (and each calendar year until 2028 at which time it is indexed annually by the MEI), the MR threshold is $3,000 for PT and SLP services and $3,000 for OT services. The targeted MR process means that not all claims exceeding the MR threshold amount are subject to review as they once were.Nov 10, 2021

Which of the following settings is subject to the Medicare Part B therapy cap?

The therapy cap applies to all Part B outpatient therapy settings and providers including: private practices, skilled nursing facilities, home health agencies, outpatient rehabilitation facilities, and comprehensive outpatient rehabilitation facilities.Aug 7, 2012

What is Medicare capped at?

The resulting maximum Social Security tax for 2020 is $8,537.40. There is no limit on the amount of earnings subject to Medicare (hospital insurance) tax.
...
2020 Social Security and Medicare Tax Withholding Rates and Limits.
Tax2019 Limit2020 Limit
Social Security liability$8,239.80$8,537.40
Medicare grossNo limitNo limit
Medicare liabilityNo limitNo limit
1 more row

What is the Medicare cap for physical therapy in 2022?

$2,150
Effective January 1, 2022, the current Medicare physical therapy caps are: $2,150 for combined physical therapy and speech-language pathology services. $2,150 for occupational therapy services.

What is KX modifier physical therapy?

The KX modifier, described in subsection D., is added to claim lines to indicate that the clinician attests that services at and above the therapy caps are medically necessary and justification is documented in the medical record.

What does the KX modifier mean?

The KX modifier is a Medicare-specific modifier that indicates a beneficiary has gone above their therapy threshold amount.Oct 8, 2018

How is Medicare calculated?

Medicare premiums are based on your modified adjusted gross income, or MAGI. That's your total adjusted gross income plus tax-exempt interest, as gleaned from the most recent tax data Social Security has from the IRS.

How are Medicare wages calculated?

These wages are taxed at 1.45% and there is no limit on the taxable amount of wages. The amount of taxable Medicare wages is determined by subtracting the following from the year-to-date (YTD) gross wages on your last pay statement. Health – subtract the YTD employee health insurance deduction.

Does the employer portion of Social Security cap?

Note: For employed wage earners, their Social Security portion is 6.2% on earnings up to the taxable maximum. Their Medicare portion is 1.45% on all earnings.
...
2022 Wage Cap Jumps to $147,000 for Social Security Payroll Taxes.
Payroll Taxes: Cap on Maximum Earnings
Type of Payroll Tax2022 Maximum Earnings2021 Maximum Earnings
MedicareNo limitNo limit
2 more rows
Oct 13, 2021

Does Medicare cover physical therapy?

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.Nov 11, 2020

What is included in physical therapy?

You treatments might include:
  • Exercises or stretches guided by your therapist.
  • Massage, heat, or cold therapy, warm water therapy, or ultrasound to ease muscle pain or spasms.
  • Rehab to help you learn to use an artificial limb.
  • Practice with gadgets that help you move or stay balanced, like a cane or walker.
Jul 31, 2021

What happens when you reach Medicare threshold?

When you spend certain amounts in gap and out of pocket costs, you'll reach the thresholds. Once you've reached the thresholds, you'll start getting higher Medicare benefits. This means you'll get more money back from us for certain Medicare services. Only verified costs count towards the threshold.Jan 1, 2022

Is Medicare hard cap on physical therapy?

In 2018, Medicare repealed its hard cap on physical therapy services. However, PTs must continue to track their patients’ progress toward an annual threshold. Prev. Physical Therapists’ Guide to MIPS. Beginning in 2019, certain PTs, OTs, and SLPs are eligible to participate in the Merit-Based Incentive Payment System. 9 min. read.

Why do physical therapists use G codes?

Physical therapists used G-codes to satisfy certain requirements for reporting on Medicare patients’ function and condition. Introduced as part of the Balanced Budget Act (BBA) of 1997, the therapy cap was intended as a temporary solution to control Medicare costs.

When was the hard cap repealed?

However, despite a longstanding push to repeal the cap, Congress continued to renew it each year after it was first established. But in 2018, the hard cap was finally repealed —and replaced with a soft cap ...

Is physical therapy considered medically necessary?

Furthermore, physical therapy treatment is considered medically necessary “ if the type, amount, and duration of services outlined in the plan of care increase the likelihood of meeting one or more of these stated goals: to improve function, minimize loss of function, or decrease risk of injury and disease.”.

Do you need to submit special documentation along with the KX modifier threshold?

You do not need to submit special documentation along with the KX modifier threshold. You are responsible for consulting guidance in the Medicare manuals and professional literature to determine if the beneficiary qualifies for the exception.

What does KX mean in a claim?

Add the KX modifier to claim lines to indicate that you are attesting that services at and above the therapy thresholds are medically necessary , and that documentation in the patient's medical record justifies the services. This includes documentation that patients, based on their condition, require continued skilled therapy—ie, therapy beyond the amount payable under the threshold to achieve their prior functional status or maximum expected functional status within a reasonable amount of time.

What is Medicare approved amount?

Medicare-Approved Amount. In Original Medicare, this is the amount a doctor or supplier that accepts assignment can be paid. It may be less than the actual amount a doctor or supplier charges. Medicare pays part of this amount and you’re responsible for the difference. , and the Part B deductible applies.

What is part B in physical therapy?

Physical therapy. Part B covers certain doctors' services, outpatient care, medical supplies, and preventive services. Health care services or supplies needed to diagnose or treat an illness, injury, condition, disease, or its symptoms and that meet accepted standards of medicine. outpatient physical therapy.

When was the Bipartisan Budget Act of 2018 passed?

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. This law included two provisions related to Medicare payment for outpatient therapy services ...

What is the BBA of 2018?

On February 9, 2018, the Bipartisan Budget Act of 2018 (BBA of 2018) (Public Law 115-123) was signed into law. This law included two provisions related to Medicare payment for outpatient therapy services including physical therapy (PT), speech-language pathology (SLP), and occupational therapy (OT) services: Section 50202 of the BBA of 2018 repeals ...

How many days of service can a patient request beyond the cap?

If the patient does not have a condition or complexity that allows automatic exception, but is believed to require medically necessary services exceeding the caps--the provider/supplier or beneficiary may fax a letter requesting up to 15 treatment days of service beyond the cap.

How long does it take CMS to make a decision?

The law mandates that if CMS does not make a decision within 10 days, the services will be deemed to be medically necessary. This fact sheet describes the exceptions process which will be implemented by our claims processing contractors. Until contractors are able to implement the exceptions process, they are required to accept requests ...

When is a KX modifier required?

In cases where the beneficiary was treated in the same year for the same condition, a written request and contractor approval is required for use of the KX modifier if the condition does not qualify for an automatic exception. The beneficiary requires this treatment in order to return to a previous place of residence.

What are reasonable justifications for a skilled nursing facility?

Reasonable justifications include residents of skilled nursing facilities prevented by consolidated billing from accessing hospital services, debilitated patients for whom transportation to the hospital is a physical hardship, or lack of therapy services at hospital in the beneficiary’s county.

Why are medical records subject to review?

Medical records continue to be subject to review for possible misrepresentation, fraud or patterns of abuse. If the contractor determines that the provider/supplier has inappropriately used the modifier, the provider/supplier may be subject to sanctions resulting from providing inaccurate information on a claim.

What is a beneficiary mental health?

The beneficiary has a mental or cognitive disorder in addition to the condition being treated that will have a direct and significant impact the rate of recovery. For the above complexities, the provider should include in the documentation all relevant disorders or conditions and describe the impact.

image

Kx Modifier and Exceptions Process

Using The Kx Modifier

  • Add the KX modifier to claim lines to indicate that you are attesting that services at and above the therapy thresholds are medically necessary, and that documentation in the patient's medical record justifies the services. This includes documentation that patients, based on their condition, require continued skilled therapy—ie, therapy beyond the ...
See more on apta.org

Targeted Medical Review Process

  • Along with the KX modifier threshold, the BBA of 2018 retains the targeted medical review process that was established in the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA). For 2018 through 2028, the targeted medical review threshold is $3,000 for PT and SLP services, and $3,000 for OT services. (After 2028, the threshold will be indexed annually by the M…
See more on apta.org

More from CMS

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 1 2 3 4 5 6 7 8 9