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how to arrange outpatient physical therapy through medicare

by Nolan Thompson Published 3 years ago Updated 2 years ago

To treat Medicare beneficiaries (patients), you must become certified or credentialed through CMS as a licensed OT, PT, or SLP rehab provider. Start by obtaining an NPI on the National Plan & Provider Enumeration System (NPPES) if you don’t have one already. Then, complete the online Medicare Enrollment Application.

Full Answer

What is outpatient physical therapy in Medicare?

outpatient physical therapy. 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.

Does Medicare pay for physical therapy if it’s not medically necessary?

Original Medicare will continue to pay for up to 80 percent of the Medicare-approved amount once your care is confirmed as medically necessary. Your costs with a Medicare Advantage plan may be different, so ask your provider before seeking care. What if your physical therapy isn’t medically necessary?

Is there a limit on Medicare outpatient therapy?

Medicare Advantage plans are offered by private insurance companies and approved by Medicare. These plans must provide coverage at least as good as what’s provided by Original Medicare (Parts A & B). Is There a Limit on Medicare Coverage for Outpatient Therapy? Technically, no.

What are the conditions of payment for physical therapy outpatient services?

Once the therapist determines it is necessary to provide care, a condition of payment for PT outpatient services is the patient be under the active care of a physician/NPP.

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 often does a PT have to see a Medicare patient?

The PT must recertify the POC “within 90 calendar days from the date of the initial treatment,” or if the patient's condition evolves in such a way that the therapist must revise long-term goals—whichever occurs first.

Will 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.

Is there a Medicare deductible for physical therapy?

Share: After you meet your Part B deductible, Medicare will cover 80 percent of medically necessary physical therapy costs, and with no limit on outpatient physical therapy coverage. Medicare can be used in a variety of settings, including at home, nursing facilities, and outpatient rehabilitation facilities.

Does Medicare cover physical therapy for arthritis?

Medicare Part B Medicare will usually cover doctor's visits related to arthritis, physical therapy, and some DME, such as splints, braces, walkers, or canes. A person is often required to obtain prior authorization from Medicare before purchasing equipment or pursuing therapy services.

How many physical therapy sessions do I need?

On average, non-surgical patients graduate after 10-12 visits, but often start to feel improvement after just a few sessions. However, your progress and the number of physical therapy sessions you need will depend on your individual condition and commitment to therapy.

What does Medicare reimburse for physical therapy?

Coverage and payments Once you've met your Part B deductible, which is $203 for 2021, Medicare will pay 80 percent of your PT costs. You'll be responsible for paying the remaining 20 percent. There's no longer a cap on the PT costs that Medicare will cover.

What is the Medicare cap for 2022?

For several years, the cap was $6,700, although most plans have had out-of-pocket caps below that level. For 2021, the maximum out-of-pocket limit for Medicare Advantage plans increased to $7,550 (plus out-of-pocket costs for prescription drugs), and it's staying at that level for 2022.

How Long Does Medicare pay for physical therapy after knee replacement?

Medicare covers inpatient rehab in a skilled nursing facility – also known as an SNF – for up to 100 days. Rehab in an SNF may be needed after an injury or procedure, like a hip or knee replacement.

Does Medicare cover physical therapy after hip replacement?

Medicare Part B generally covers most of these outpatient medical costs. Medicare Part B may also cover outpatient physical therapy that you receive while you are recovering from a hip replacement. Medicare Part B also generally covers second opinions for surgery such as hip replacements.

Does Medicare cover physical therapy for osteoporosis?

Medicare Part B generally covers physical therapy services. If you get physical therapy at the hospital, an outpatient center, or in your doctor's office, Part B typically covers 80% of allowable charges after you meet your Part B deductible.

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.

What is the Medicare therapy cap?

The Medicare therapy cap was a set limit on how much Original Medicare would pay for outpatient therapy in a year. Once that limit was reached, you had to request additional coverage through an exception in order to continue getting covered services. However, by law, the therapy cap was removed entirely by 2019.

What is an ABN for a physical therapist?

This is true for physical therapy, speech-language pathology and occupational therapy. This notice is called an Advance Beneficiary Notice of Noncoverage (ABN). If your provider gives you an ABN, you may agree to pay for the services that aren’t medically necessary. However, Medicare will not help cover the cost.

What is Medicare Part B?

Occupational therapy. Speech-language pathology services. Medicare Part B pays 80 percent of the Medicare-approved amount for outpatient therapy services received from a provider who accepts Medicare assignment. You are responsible for 20 percent of the cost ...

What is Medicare Made Clear?

Medicare Made Clear is brought to you by UnitedHealthcare to help make understanding Medicare easier. Click here to take advantage of more helpful tools and resources from Medicare Made Clear including downloadable worksheets and guides.

Does Medicare Advantage cover rehab?

Your costs for Medicare rehab coverage with a Medicare Advantage plan (Part C) depend on the specific plan you have. Medicare Advantage plans are offered by private insurance companies and approved by Medicare. These plans must provide coverage at least as good as what’s provided by Original Medicare (Parts A & B).

Does Medicare pay for outpatient therapy?

Technically, no. There is no limit on what Medicare will pay for outpatient therapy, but after your total costs reach a certain amount, your provider must confirm that your therapy is medically necessary in order for Medicare to cover it.1.

Why is Physical Therapy Valuable?

According to the American Physical Therapy Association (APTA), physical therapy can help you regain or maintain your ability to move and function after injury or illness. Physical therapy can also help you manage your pain or overcome a disability.

Does Medicare Cover Physical Therapy?

Medicare covers physical therapy as a skilled service. Whether you receive physical therapy (PT) at home, in a facility or hospital, or a therapist’s office, the following conditions must be met:

What Parts of Medicare Cover Physical Therapy?

Part A (hospital insurance) covers physical therapy as an inpatient service in a hospital or skilled nursing facility (SNF) if it’s a Medicare-covered stay, or as part of your home health care benefit.

Does Medicare Cover In-home Physical Therapy?

Medicare Part A covers in-home physical therapy as a home health benefit under the following conditions:

What Are the Medicare Caps for Physical Therapy Coverage?

Medicare no longer caps medically necessary physical therapy coverage. For outpatient therapy in 2021, if you exceed $2,150 with physical therapy and speech-language pathology services combined, your therapy provider must add a modifier to their billing to show Medicare that you continue to need and benefit from therapy.

How does physical therapy help with Medicare?

Physical therapy can help restore normal physical functioning and reduce and eliminate various limitations or disabilities caused by disease, injury, or a chronic health condition. Physical therapy can help you maintain your independence and your ability to perform activities of daily living. If you qualify for Medicare due to age ...

What is physical therapy?

Physical therapy focuses on restoring and increasing joint mobility, muscle strength, and overall functionality. All of these factors play key roles in improving quality of life and affecting the activities and hobbies you are able to participate in.

Does Medicare cover physical therapy?

Medicare does offer coverage for all physical therapy treatments that are prescribed by a physician and deemed medically necessary to improve your specific health condition. In most cases, your therapy treatments are covered by Medicare Part B. Part B is responsible for covering medically necessary outpatient procedures and services.

Does Medicare cover home health care?

If you are homebound and require physical therapy treatments to occur in your own home, you may receive coverage through your Medicare benefits for home health care. Specific requirements must be met to receive home health care, including being homebound and needing skilled nursing services intermittently.

What does Medicare expect from you?

Medicare expects you to evaluate the patient, determine their rehabilitation needs and address those needs. One of those inaccurate impressions is the belief the patient must be making objective progress in order to continue with rehabilitation.

How long is Medicare billing?

When billing timed CPT codes, Medicare not only looks at the individual 15-minute units but also considers the total time when factoring the allowable payment. This is commonly known as the 8-23-minute rule.

What does the KX modifier mean for PT?

The KX modifier simply indicates to Medicare that specific treatment continues to be medically necessary and requires the skills of the PT/OT in order to continue towards meeting the patient’s goals. This serves as a mental check on whether the care continues to be reasonable and necessary.

What is the TPE program?

CMS now uses the Target ed Probe and Educate program (TPE) to review selected claims and educate providers on Medicare billing requirements. Currently, the CMS is targeting only those practices with the highest denial rate or with billing practices that are substantially different than their peers.

How did Medicare come into existence?

Medicare came into being through legislation, signed into law by President Lyndon Johnson, as part of the Social Security Amendments of 1965. It’s funded by payroll deductions as an addition to your Social Security deductions (FICA) as well as premiums paid for those receiving Part B benefits.

What is the coverage gap for 2020?

You may have heard of the “donut hole” which is also called the coverage gap and begins when the Medicare beneficiary has spent $4020 (for 2020) between their Medicare payment and their out-of-pocket payments. The patient exits the gap when total expenses reach $6350 (2020).

What is important about Medicare?

One of the more valuable things about Medicare is they tell you exactly what they are looking for in their documentation requirements. For starters, documentation must support the medical necessity of the care provided. This means your notes must be comprehensive enough and contain sufficient detail so anyone reviewing the medical record may easily see what you are treating and why you are providing that specific treatment. They should also be able to easily see if there is progress towards achieving the patient’s functional goals.

General Information

CPT codes, descriptions and other data only are copyright 2021 American Medical Association. All Rights Reserved. Applicable FARS/HHSARS apply.

CMS National Coverage Policy

Language quoted from Centers for Medicare and Medicaid Services (CMS), National Coverage Determinations (NCDs) and coverage provisions in interpretive manuals is italicized throughout the policy.

Article Guidance

This article gives guidance for billing, coding, and other guidelines in relation to local coverage policy Outpatient Physical and Occupational Therapy Services L34049.

ICD-10-CM Codes that DO NOT Support Medical Necessity

The following ICD-10-CM Codes do not support the medical necessity for the CPT/HCPCS code 97035.

Bill Type Codes

Contractors may specify Bill Types to help providers identify those Bill Types typically used to report this service. Absence of a Bill Type does not guarantee that the article does not apply to that Bill Type.

Revenue Codes

Contractors may specify Revenue Codes to help providers identify those Revenue Codes typically used to report this service. In most instances Revenue Codes are purely advisory. Unless specified in the article, services reported under other Revenue Codes are equally subject to this coverage determination.

What is a POC in rehabilitation?

Outpatient rehabilitation therapy services must relate directly and specifically to a written treatment plan (also known as the POC). You must establish the treatment plan/POC before treatment begins, with some exceptions. CMS considers the treatment plan/POC established when it is developed (written or dictated) by a PT, an OT, an SLP, a physician, or an NPP. Only a physician may establish a POC in a Comprehensive Outpatient Rehabilitation Facility (CORF).

How often do you need to recertify a POC?

Sign the recertification, documenting the need for continued or modified therapy whenever a significant POC modification becomes evident or at least every 90 days after the treatment starts. Complete recertification sooner when the duration of the plan is less than 90 days, unless a certification delay occurs. CMS allows delayed certification when the physician/NPP completes certification and includes a delay reason. CMS accepts certifications without justification up to 30 days after the due date. Recertification is timely when dated during the duration of the initial POC or within 90 calendar days of the initial treatment under that plan, whichever is less.

How long does a POC last?

The physician’s/NPP’s signature and date on a correctly written POC (with or without an order) satisfies the certification requirement for the duration of the POC or 90 calendar days from the date of the initial treatment, whichever is less. Include the initial evaluation indicating the treatment need in the POC.

How long does a HCPCS code have to be in a day?

CMS requires that when you provide only one 15-minute timed HCPCS code in a day, that you do not bill that service if performed for less than 8 minutes. When providing more than one unit of service, the initial and subsequent service must each total at least 15 minutes, and the last unit may count as a full unit of service if it includes at least 8 minutes of additional services. Do not count all treatment minutes in a day to one HCPCS code if more than 15 minutes of one or more other codes are furnished.

What is the patient's problem that requires the skills of a physical therapist?

The patient’s problem must be of such complexity that it requires the skills of a physical therapist. Lastly, it is expected that the patient’s condition will improve in a reasonable time frame or require the skills of a therapist to either design or carry out a maintenance program.

How long does Part A cover?

The primary difference is Part A covers the patient when they’ve had either at least 3 days as an inpatient in the hospital or a stay at a SNF. Part B covers any other patients who meet the criteria for home care.

What is Medicare home?

Medicare defines a “home” in the normal sense of an house, condo or apartment but also as any institution other than a hospital, Critical Access Hospital or SNF. During challenging times, every option should be considered for the benefit of the patient and for the practice.

What are the criteria for a patient to leave their home?

Criterion One: The patient must either: - due to their illness or injury, need to use crutches, canes, wheelchairs, and walkers; or special transportation; or the assistance of another person in order to leave their place of residence. OR. Has a condition where leaving his or her home is medically contraindicated.

How often do you need to do a re-evaluation?

Treatment and documentation requirements are the same as when treated in the office other than a re-evaluation must be done every 30 days not every 10 visits. This re-evaluation is similar to the progress report done in outpatient care.

What does a physician have to certify?

The patient’s physician must certify that the services being provided are specific, safe and effective for that patient’s condition. The amount, frequency and duration of the care must be reasonable and appropriate. The patient’s problem must be of such complexity that it requires the skills of a physical therapist.

Does Medicare cover physical therapy?

Medicare considers skilled care as defined by the PT’s state practice act. Like the requirements for coverage of outpatient rehab, the patient must be under the care of a physician. Also the physical therapy services provided must be under the plan of care from either the physician or the PT and signed off by the doctor.

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