Medicare Blog

how does medicare track billable minutes

by Mr. Colt Runolfsson Published 2 years ago Updated 1 year ago
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When Medicare reviews your claim, they will divide the total minutes for all timed services by 15. If the result of the equation leaves at least 8 minutes remaining before hitting another 15-minute increment, you can bill an extra unit. If there are less than 8 minutes, you cannot bill an extra unit.

What is the 8 minute rule? The 8 minute rule is a Medicare guideline for determining how many billable units may be charged in rehabilitation based on time spent with the patient. Billable units are based on 15 minute increments, once the initial 8 minutes have been met, which is how the name “8 minute rule” developed.Dec 16, 2019

Full Answer

How are exact minutes documented for Medicare Part A?

As a general rule, exact minutes (not rounded minutes) of a treatment are documented regardless of insurance type– Medicare Part A, Part B, HMO. Those minutes are then filtered into the billing system a bit differently depending on the type of insurance. Medicare Part A’s exact minutes filter to the MDS to determine a RUG score for reimbursement.

Does Medicare bill for 23 minutes or 30 minutes?

However, if you completed 23 minutes of treatment, Medicare would be billed for two units of treatment. The bill would still be for two units regardless of whether you spent 23 or 30 minutes with the patient. Guidelines for Medicare’s 8-Minute Rule Billable units for the eight-minute rule would look something like this:

How long does it take to bill Medicare for a treatment?

The rule states that the treatment must last at least 8 minutes for the provider to bill a unit of treatment to Medicare. So, for treatment between 8 minutes and 22 minutes, Medicare would be billed for one unit of treatment. From 23 minutes to 37 minutes, the provider could bill two units.

What is the Medicare 8 minute rule for physical therapy billing?

One of the most confusing aspects of Physical Therapy billing is Medicare's 8 Minute Rulefor time-based codes. Physical Therapy billing codes are either timed codes or untimed codes for billingpurposes.   Untimed codes are reported as one unit per day.   Timed codes are reported using the 8 Minute Rule.

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Does CMS follow the 8-minute rule?

Per CMS, in order to bill one unit of a timed CPT code, you must perform that associated modality for at least 8 minutes. Medicare takes the total time spent in a treatment session and divides by 15 to figure out how many units are rendered on a given service date.

Does the 8-minute rule apply to Medicare Part A?

The rule does not apply to Medicare Part A services.

How are therapy minutes calculated?

According to CPT guidelines, each timed code represents 15 minutes of treatment. But your treatment time for these codes won't always divide into perfect 15-minute blocks....Minutes and Billing Units.8 – 22 minutes1 unit23 – 37 minutes2 units38 – 52 minutes3 units53 – 67 minutes4 units68 – 82 minutes5 units1 more row•Sep 13, 2018

How many minutes is 3 units for Medicare?

40 minutesAppropriate billing for 40 minutes is for 3 units. Bill 2 units of 97110 and 1 unit of 97140. Count the first 30 minutes of 97110 as two full units.

Can you bill 3 units in 30 minutes?

According to the chart you can bill 3 units again based on total time. Your bill would need to have 2 units of therapeutic exercises which equals 30 minutes with 2 minutes remainder.

What is the 8-minute rule and how is the time billed for two units?

Introduced in December 1999, the 8-minute rule became effective on April 1, 2000. The rule allows practitioners to bill Medicare for one unit of service if its length is at least eight (but fewer than 22) minutes. A billable “unit” of service refers to the time interval for the service.

How do you calculate billable units?

Calculating Billable Units. To calculate the number of billable units, the total time for time-based services is added together for a particular date of service. This total time is then divided by 15. The end value is the number of billable units.

When reporting timed based treatment time the therapist includes what time?

A treatment encounter note is required to include two-time elements: the total time-based treatment minutes and the total treatment minutes. The total treatment minutes includes both time spent providing time based and untimed code services.

How many therapy units is 45 minutes?

3 billable unitsTimed Minutes: 45 However, billing is based ultimately on total timed minutes – 45 in this case, and equivalent to 3 billable units. Those 7 minutes spent on therapeutic activity still count toward timed minutes because Therapeutic Activity is a timed code.

How many units is 38 minutes?

3 units38–52 minutes = 3 units. 53–67 minutes = 4 units.

What is the AMA 8-minute rule?

The AMA uses similar guidelines as Medicare in that 1 unit equals 8 minutes. Where the AMA differs is that there is no cumulative restriction or adding of minutes, even for time-based codes. Every code will be allowed 1 unit for each 8 minutes performed.

How many minutes is a therapy unit?

Unlike service-based CPT codes, time-based CPT codes can be billed as multiple units in 15-minute increments. Meaning that one unit would represent 15 minutes of therapy. A therapist must provide direct one-to-one therapy for at least 8 minutes to receive reimbursement for a time based treatment code.

What is CPT code?

As you may know, CPT codes are medical codes that describe the procedures and services you are performing to billing agencies and insurance companies. They were created by the American Medical Association in 1966 to simplify and standardize procedural reporting.

How long do you have to be on Medicare for treatment?

The 8-minute rule states that to receive Medicare reimbursement, you must provide treatment for at least eight minutes. Using the “rule of eights,” billing units that are normally based on 15-minute increments spent with a patient can be standardized.

How long does Medicare bill for physical therapy?

Understanding the Medicare 8-Minute Rule for Physical Therapy Billing. Medicare has certain rules and regulations in place to prevent fraud, waste, and abuse. Here’s one you may not have heard of – the 8-minute rule. Providers must treat patients for at least eight minutes to receive Medicare reimbursement.

How many minutes of manual therapy are there on Medicare?

However, you have two “remaining” minutes from the physical exercise and six “remaining” minutes from the manual therapy. Together, you have eight minutes, which would push you into the next billing unit. Medicare guidelines would allow you to bill for three units in that circumstance.

How many units can Medicare bill?

Medicare guidelines would allow you to bill for three units in that circumstance.

How many units of Medicare would you be billed for if you completed 23 minutes of treatment?

However, if you completed 23 minutes of treatment, Medicare would be billed for two units of treatment. The bill would still be for two units regardless of whether you spent 23 or 30 minutes with the patient.

What are the different types of physical therapy codes?

Physical therapy codes can be divided into service-based and time-based codes.

How many minutes is Medicare?

If you do not understand some basics of Medicare’s 8-Minute rule, sometimes known as the “Rule of Eights,” it can become challenging. Fortunately, we have gathered all the information to help you understand this rule, its concept, and its use in Medicare.

How long can you bill Medicare for a CPT?

Medicare’s 8-minute rule states that you can bill Medicare for one entire unit if a service takes between 8 and 22 minutes. As a result, this can only apply to CPT codes that are time-based. The 8-minute guideline, however, does not apply to all time-based CPT codes or all situations.

What is an untimed CPT code?

Untimed codes, also known as service-based CPT codes, have no time restriction in their definition and are usually given to a patient once per day. Physical Therapy Evaluation (97161), Mechanical Traction (97012), or Electrical Stim, unsupervised are examples of these codes (97014). These codes are in one unit, regardless of how long they perform on the patient. These codes are one unit but are not included in the totaling of the timed code units because there is no timed component.

How long is a CPT time based code?

In the AMA CPT codebook, time-based codes are described as services provided one-on-one in 15-minute blocks of time, e.g., To 1 unit = 15 minutes. When assessing the number of units billed for a visit, the 8-minute rule comes into play.

How long is a tipping moment?

Consider 8 minutes to be the tipping moment. The 15-minute block counts as a unit once you have crossed the 8-minute mark!

What is exact minutes in Medicare?

Since “count” equates to “bill,” we have to look at how residents are billed for our services, and this differs based on insurance type. As a general rule, exact minutes (not rounded minutes) of a treatment are documented regardless of insurance type– Medicare Part A, Part B, HMO. Those minutes are then filtered into the billing system a bit differently depending on the type of insurance. Medicare Part A’s exact minutes filter to the MDS to determine a RUG score for reimbursement. The more minutes, the higher the category and reimbursement rate. Medicare Part B’s exact minutes filter into a formula to determine unit blocks of time, which are then paid using a fee per unit according to the Physician Fee Schedule. HMO’s typically have a “Part A” and “Part B” type fee model as well.

What is observation and assessment in nursing?

Observation and Assessment of Patient’s Condition. “Observation and assessment are skilled services when the likelihood of change in a patient’s condition requires skilled nursing or skilled rehabilitation personnel to identify and evaluate the patient’s need for possible modification of treatment or initiation of additional medical procedures, until the patient’s condition is essentially stabilized.” Most of our long term care residents receiving therapy services may fit into this category. “Likelihood of change” does not just include improvement. Residents experiencing a decline in status, even an expected decline {hint-Hospice} may benefit from skilled therapy services. Residents are often discharged from therapy with “lack of progress” or “declining status” as the reason. It is in these cases that the skills of the therapist may be best utilized, to support the resident during the period of instability through observation and assessment, and provide modification to the plan of care as the resident’s status changes.

What is Medicare Benefit Policy Manual?

The Medicare Benefit Policy Manual, Chapter 8, Section 30.2.3 outlines the 4 categories of skilled care. As therapists, the services we provide, in addition to meeting the criteria listed above, should fit into at least one of the following categories:

What is set up time in skilled rehab?

Time required to adjust equipment or otherwise prepare the treatment area for skilled rehab is the set up time and is included in the count of minutes of therapy delivered to the resident. This may be performed by the therapist, assistant or *aide (*in states where aides are allowed to participate as deemed by the State Practice Act).

What is the purpose of skilled nursing services?

Services must be provided directly by or under the general supervision of these skilled nursing or skilled rehabilitation personnel to assure the safety of the patient and to achieve the medically desired result.

What is skill in education?

According to Webster, skill is defined as: the ability to do something that comes from training, experience, or practice. the ability to use one’s knowledge effectively and readily in execution or performance. a learned power of doing something competently. to make a difference.

When was the Jimmo v Sebelius Settlement updated?

When the Manual was updated in January 2014, a key component about skilled care was stressed (which was a result of the Jimmo v Sebelius Settlement). This component is mentioned above and is further expanded upon here. This is an excerpt from the revised Manual.

Why is billing for every minute of a patient visit a red flag?

In fact, billing for every single minute of a patient visit would be a serious red flag, because it would be nearly impossible for a therapist to run an entire session of pure, continuous billable time.

Why do rehab therapists leave money on the table?

(I’m looking at you, Hackman.) Rehab therapists, on the other hand, are more likely to leave money on the table due to confusion over what counts as billable time. Are you getting the most out of your minutes? What questions do you have? Let us know in the comment section below.

What is CPT code 97110?

"For example, if the development and implementation of a home exercise program includes instructing the patient in therapeutic exercises to develop strength and endurance, and range of motion and flexibility, CPT® code 97110 (therapeutic exercise) should be reported for the direct one-on-one patient contact time spent with the patient in discussing the program, demonstrating the exercise, and assessing the patient to determine if he or she is performing the exercises correctly." If you are an APTA member, you can read the full article here: http://www.apta.org/Payment...

What should a therapist indicate in a soap note?

As for the documentation aspect, the therapist should be able to indicate the total visit time in the SOAP notes and also indicate the total direct time spent on each intervention. (If the therapist uses WebPT, there's actually a specific area in the SOAP note to make this distinction.)

What happens if a patient is discharged for the first diagnosis?

If the patient was already discharged for the first diagnosis then you would conduct another initial evaluation upon that patient's return for the new diagnosis. If the patient has not been discharged for the first diagnosis and you wish to treat both diagnoses concurrently, then you would perform a re-evaluation to update the plan of care to account for the new changes to the patient's condition.

How many units are in 40 minutes?

With that in mind, your total timed minutes (40 minutes) are equivalent to three (3) units (i.e., two 15-minute increments with a remainder of 10 minutes). You would then only bill one unit for the untimed code, which brings you to a total of four units.

How long can you bill for a 15 minute treatment?

Now, per Medicare’s 8-minute rule, you can bill for a full 15-minute timed treatment unit as long as you provided that service for at least 8 minutes, but as this blog post explains, it’s still imperative that you record the exact duration of each type of treatment you provide. 6.

What is practice panther?

Besides helping lawyers keep track of their billable hours, PracticePanther also helps organize documents and client information securely. When an associate is ready to finalize their billable hours, the solution even takes care of legal invoices, payments, and accounting.

How to multiply billable hours?

Multiply your billable hours by your hourly rate.

How many hours do you have to work to get 1,832 billable hours?

To achieve 1,832 billable hours, the associate would have to work 10 hours and 20 minutes a day, every day, for 47 weeks. To meet today’s industry average of 1,892 billable hours, an associate would have to add 60 more hours in the year. That’s around 15 more minutes of billable time a day, which culminates in an average workday ...

What is billable hours?

Billable hours are any hours worked that must be compensated. If you spend four hours balancing a client’s books, and you’re paid by the hour, you have four billable hours. However, you have to have a record of your time worked to bill that time to the client. And that’s just one step to recording and being paid for billable hours.

What is a client meeting?

Attending meetings with the client or related to the client’s project.

What is Saviom software?

Companies with lots of moving parts can benefit from the insights achieved through Saviom, a resource management and workforce planning software. Regarding billable hours, Saviom can help managers better understand their employees’ workflows, projects, and productivity. From there, it’s easy to make adjustments to billable and non-billable time to increase productivity and output.

How many hours do lawyers work?

The average number of required billable hours in 2015 was 1,892, according to the National Association for Legal Professionals. But billable hours make up only a percentage of an attorney’s working hours, as a 2018 Yale report shows. The report assumes lawyers may take off five weeks of work in a year for PTO or vacation. To achieve 1,832 billable hours, the associate would have to work 10 hours and 20 minutes a day, every day, for 47 weeks.

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The Fundamentals of The 8-Minute Rule

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The 8-Minute rule controls how rehab therapists decide how many units they should charge to Medicare for outpatient therapy services provided on a specific date. To be reimbursed for a time-based treatment code, a therapist must perform direct, one-on-one therapy for at least eight minutes.
See more on newmedicare.com

What Exactly Is The 8-Minute Rule?

  • Medicare’s 8-minute rule states that you can bill Medicare for one entire unit if a service takes between 8 and 22 minutes. As a result, this can only apply to CPT codes that are time-based. The 8-minute guideline, however, does not apply to all time-based CPT codes or all situations. This rule does not apply to other insurance companies unless they have specified that they follow Me…
See more on newmedicare.com

How Does It Work?

  • “To bill one unit of a timed CPT code, you must execute the corresponding modality for at least 8 minutes,” according to this WebPT page. To put it another way, Medicare adds up all of the minutes of professional, one-on-one therapy (direct time) and divides the total by 15. You can bill for an additional unit if there are eight or more minutes lef...
See more on newmedicare.com

What Is A Timed Code?

  • In the AMA CPT codebook, time-based codes are described as services provided one-on-one in 15-minute blocks of time, e.g., To 1 unit = 15 minutes. When assessing the number of units billed for a visit, the 8-minute rule comes into play.
See more on newmedicare.com

What Are Cpt Time-Based Codes?

  • Variable billing in 15-minute increments is possible using time-based codes. These codes provide one-on-one services such as: 1. Therapeutic exercise (97110) 2. Teuromuscular re-education (97112) 3. Therapeutic activities (97530) 4. Electrical stimulation (manual) (97032) 5. Gait training (97116) 6. Ultrasound (97035) 7. Manual therapy (97140) 8. Iontophoresis (97033)
See more on newmedicare.com

What Is An Untimed Code?

  • Untimed codes, also known as service-based CPT codes, have no time restriction in their definition and are usually given to a patient once per day. Physical Therapy Evaluation (97161), Mechanical Traction (97012), or Electrical Stim, unsupervised are examples of these codes (97014). These codes are in one unit, regardless of how long they perform on the patient. These …
See more on newmedicare.com

Why Is It Known as The “8-Minute Rule”?

  • Suppose a treatment does not fit cleanly into 15-minute intervals. As a result, CMS will allow only 8 minutes to be counted as a billable unit. Consider 8 minutes to be the tipping moment. The 15-minute block counts as a unit once you have crossed the 8-minute mark! You will “satisfy” the bulk of the 15-minute time block required to bill for one unit by spending 8 minutes with your patient.
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Bottom Line

  • We hope that the following information clears up any misunderstandings you may have about the 8-minute rule. There is nothing that you should be afraid of when it comes to Medicare’s 8-minute rule. You can avoid overbilling or underbilling by having explicit knowledge of what the rule implies. New Medicaremay assist you with Medicare compliance by providing built-in solutions t…
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