Medicare Blog

how to be a non participating provider medicare physical therapy

by Lavada Kunze Published 2 years ago Updated 1 year ago
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Solution 1: Become a participating provider and start submitting claims for covered physical therapy services delivered to Medicare beneficiaries. Solution 2: Continue operating as a non-participating provider and collecting cash from patients—but start submitting claims to Medicare.

Full Answer

What is a non-participating provider for Medicare?

Feb 20, 2014 · 1) No relationship at all (not the same as a “Non-Participating Provider” and also not the same as “opting out”) 2) Participating Provider. 3) Non-Participating Provider. A little more detail on the Non-Par Status: You can accept self-payment from the beneficiary at the time of service, but you still must send in the claim to Medicare.

What happens if a PT provider is not enrolled in Medicare?

Non-participating providers accept Medicare but do not agree to take assignment in all cases (they may on a case-by-case basis). This means that while non-participating providers have signed up to accept Medicare insurance, they do not accept Medicare’s approved amount for health care services as full payment. Non-participating providers can charge up to 15% more …

Do physical therapists qualify for Medicare?

MDPP suppliers must use Form CMS-20134 to enroll in the Medicare Program. If you don’t see your provider type listed, contact your MAC’s provider enrollment center before submitting a Medicare enrollment application. For your state’s MAC contact information, refer to the Medicare Fee-For-Service Provider Enrollment Contact List.

What is a non-par PT provider?

Physicians and non-physician practitioners can submit a change of information using Internet-based PECOS or the same application used to initiate the Medicare enrollment process. Physicians, non-physician practitioners, physician and non-physician practitioner organizations, and Independent Diagnostic Testing Facilities must

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Can PTs opt out of Medicare?

Some health care professionals are allowed to "opt out" of the Medicare program and privately contract with Medicare beneficiaries. PTs aren't among them. This needs to change.

How do you become Medicare par?

PAR physicians agree to take assignment on all Medicare claims, which means that they must accept Medicare's approved amount (which is the 80% that Medicare pays plus the 20% patient copayment) as payment in full for all covered services for the duration of the calendar year.

What are the disadvantages of a non-participating provider?

Non-participating physicians face a number of disadvantages. The higher billing rates of non-participating physicians may be offset in some states due to state laws that restrict balance billing of Medicare patients.

What is a Nonpar provider?

A non-par provider is actually a provider involved in the Medicare program who has enrolled to be a Medicare provider but chooses to receive payment in a different method and amount than Medicare providers classified as participating.

What is the difference between a par and a non par?

A “Par” provider is also referred to as a provider who “accepts assignment”. A “Non-Par” provider is also referred to as a provider who “does not accept assignment”.Mar 1, 2010

What does it mean to be non par with Medicare?

A non-par provider is actually someone who has enrolled to be a Medicare provider but chooses to receive payment in a different method and amount than Medicare providers classified as participating.

Can a Medicare patient self pay?

Whenever a Medicare patient wants to pay cash for a covered service. This one is a little murky thanks to language in a 2013 HIPAA update that enables patients to—of their own free will—request that a provider not submit their claims to Medicare.Oct 24, 2019

What is the maximum fee a Medicare participating provider can collect for services?

In Original Medicare, the highest amount of money you can be charged for a covered service by doctors and other health care suppliers who don't accept assignment. The limiting charge is 15% over Medicare's approved amount. The limiting charge only applies to certain services and doesn't apply to supplies or equipment.

What is the difference between a participating and non-participating Medicare provider?

Non-participating providers accept Medicare but do not agree to take assignment in all cases (they may on a case-by-case basis). This means that while non-participating providers have signed up to accept Medicare insurance, they do not accept Medicare's approved amount for health care services as full payment.

What are the consequences of non participation with Medicare?

The nonparticipating provider may receive reimbursement for rendered services directly from their Medicare patients. They submit a bill to Medicare so the beneficiary may be reimbursed for the portion of the charges for which Medicare is responsible.Feb 1, 2018

How to change Medicare enrollment after getting an NPI?

Before applying, be sure you have the necessary enrollment information. Complete the actions using PECOS or the paper enrollment form.

What are the two types of NPIs?

There are 2 types of NPIs: Type 1 (individual) and Type 2 (organizational). Medicare allows only Type 1 NPIs for solely ordering items or certifying services. Apply for an NPI in 1 of 3 ways:

What is a TIN number?

Tax Identification Number (TIN) of the provider or supplier organization. Federal, state, and local (city or county) business and professional licenses, certificates, and registrations specifically required to operate as a health care facility. A Medicare-imposed revocation of Medicare billing privileges.

How much is the Medicare application fee for 2021?

Application Fee Amount. The enrollment application fee sent January 1, 2021, through December 31, 2021, is $599. For more information, refer to the Medicare Application Fee webpage. How to Pay the Application Fee ⤵. Whether you apply for Medicare enrollment online or use the paper application, you must pay the application fee online:

What is Medicare revocation?

A Medicare-imposed revocation of Medicare billing privileges. A suspension, termination, or revocation of a license to provide health care by a state licensing authority or the Medicaid Program. A conviction of a federal or state felony within the 10 years preceding enrollment, revalidation, or re-enrollment.

How long does it take to become a Medicare provider?

You’ve 90 days after your initial enrollment approval letter is sent to decide if you want to be a participating provider or supplier.

Does Medicare require EFT?

If enrolling in Medicare, revalidating, or making certain changes to their enrollment, CMS requires E FT. The most efficient way to enroll in EFT is to complete the PECOS EFT information section. When submitting a PECOS web application:

What is an ABN in Medicare?

If the patient would like to pay out-of-pocket for non-medically necessary services, you must issue an advance beneficiary notice of noncoverage (ABN), which serves as a record that the patient agrees to accept financial liability in the event that Medicare denies payment.

Does Medicare require prior authorization?

In fact, while Medicare does not require patients to obtain prior authorization before receiving therapy services, some MA plans do. So, to ensure you're always in compliance, check with the specific MA plan provider—as well as your state practice act—before providing services.".

Can you treat Medicare patients on a cash-pay basis?

You can, however, treat Medicare patients on a cash-pay basis for non-covered services.". So, if the services you're referring to are Medicare-covered, then you would not be able to provide them to a Medicare patient if you didn't have a relationship with Medicare.

Can you collect cash from Medicare?

Thus, you cannot collect cash payment for such services directly from a patient—even if the patient wants to pay cash.

What is a non-participating provider?

Non-Participating Provider (NON-PAR): A non-participating provider can elect participation on a claim-by-claim basis, but receive a lower reimbursement amount of 95% of the allowed amount, regardless of whether the claim is assigned or not assigned . NON-PAR providers can bill beneficiaries for more than the Medicare allowable for unassigned claims, ...

When is Medicare open enrollment?

Participation in Medicare is on an annual calendar year basis, with open enrollment dates generally beginning on November 15 th of each year. (Dates are published annually in the fee schedule final rule). Most providers that intent to be PAR submit the CMS 460 form at the time of enrollment, although you have up to 90 day to do so ...

What is supplemental coverage?

An option that the beneficiary has in selecting supplemental coverage is for “excess coverage” which covers the difference between what a provider charges and the amount Medicare will pay up to Medicare’s limiting amount. Since this requires a higher premium, this is not universally selected as a supplemental option.

How long does it take to get a CMS 460?

Most providers that intent to be PAR submit the CMS 460 form at the time of enrollment, although you have up to 90 day to do so (but your assignment will not being until your submitted form is accepted.

What is the penalty for a misdemeanor assignment?

Any person who accepts assignment and who “”knowingly, willfully, and repeatedly” violates the assignment agreement shall be guilty of a misdemeanor and subject to a fine of not more than $2,000 or imprisonment of not more than six months or both.

What is NPI in Medicare?

The National Provider Identifier (NPI) will replace health care provider identifiers in use today in standard health care transactions. Suppliers must obtain their NPI prior to enrolling in the Medicare program. Enrolling in Medicare authorizes you to bill and be paid for services furnished to Medicare beneficiaries.

What is Medicare application?

application is used to initiate a reassignment of a right to bill the Medicare program and receive Medicare payments (Note: only individual physicians and non-physician practitioners can reassign the right to bill the Medicare program).

What is a non-participating provider?

A nonparticipating provider is a provider involved in the Medicare program who has enrolled to be a Medicare provider but chooses to receive payment in a different method and amount than Medicare providers classified as participating. The nonparticipating provider may receive reimbursement for rendered services directly from their Medicare patients.

What is elective surgery for Medicare?

Elective surgery for Medicare purposes is defined as surgery that can be scheduled in advance, is not an emergency and would not result in death or permanent impairment of health if delayed.

What is a limiting charge?

The limiting charge is the maximum dollar amount that the Federal Government allows a non-participating physician to charge Medicare patients for a given service. Effective for services rendered on or after January 1, 1991, the limiting charge applies only to services billed on a non-assigned basis.

What is the OBRA Act?

The Omnibus Budget Reconciliation Act of 1986 (OBRA) requires that when a nonparticipating surgeon does not accept assignment for elective surgery performed on a Medicare beneficiary, he/she must provide certain information, in writing, to the beneficiary before the surgery.

What is considered an emergency medical condition?

To be considered an emergency, the condition for which surgery is needed must meet the definition of "emergency medical condition", as specified in subsection 1903 (v) (3) of the Social Security Act (the Act).

Can a non-participating provider bill Medicare?

In other words, a non-participating provider may bill a primary insurer, other than Medicare, more than his limiting charge if he accepts the primary payment in full, and does not bill either the beneficiary or Medicare for any difference between the billed amount and the primary payment amount.

Who is Meredith Castin?

Meredith Castin, PT, DPT, is the founder of The Non-Clinical PT, a career development resource designed to help physical, occupational, and speech therapy professionals leverage their degrees in non-clinical ways.

Is continuing skilled PT necessary?

Carefully consider whether continuing skilled PT is medically necessary. If the services you plan to deliver moving forward do not meet Medicare’s standard of medical necessity, then you’ll need to make the patient aware of this. And if he or she wants to continue receiving treatment that is usually covered by Medicare—even if that means paying out of pocket—then you’ll need to document that.

Can you accept cash payment from Medicare?

If you’re a non-participating Medicare provider, you may assume it’s fine to accept cash payment from Medicare patients for covered services. And technically, you can do exactly that––provided you then bill Medicare so the patient can get reimbursed. Many clinicians miss the second point, making them non-compliant.

Can a physical therapist opt out of Medicare?

Unlike many other types of practitioners, physical therapists cannot “opt out” of Medicare. In fact, the closest thing PTs have to “opting out” is simply not having any type of relationship with Medicare.

Is there a cap on therapy?

There’s technically no “cap” on therapy services anymore, but the remaining “threshold” (a.k.a. soft cap) still perplexes cash-based therapists. It’s tempting to collect cash once a patient has exceeded the threshold, but this blanket approach to cash pay could land you in hot water. That’s because Medicare still covers medically necessary services beyond the soft cap.

Is physical therapy covered by Medicare?

If physical therapy is preventing or slowing a patient’s decline (i.e., the treatment is medically necessary )—and a non-skilled person (such as a trainer, caregiver, or partner) cannot safely provide treatment— then that treatment is covered by Medicare.

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No Relationship whatsoever.

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If you choose not to associate with Medicare in any capacity, you cannot treat—or collect payment from—Medicare patients for any Medicare-covered services. You can, however, treat Medicare patients on a cash-pay basis for non-covered services, which I will discuss in greater detail below.
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Enrolled as A Participating Provider.

  • If you decide to participate in Medicare, you must bill Medicare for all covered therapy services that you provide to Medicare beneficiaries—even if you believe Medicare will deny the claim. Thus, you cannot collect cash payment for such services directly from a patient—even if the patient wants to pay cash. With this type of relationship, you can still collect cash payment for services …
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Enrolled as A Non-Participating Provider.

  • When you enroll with Medicare, you can choose to do so as a “non-participating” provider. This means that you can collect cash-payment from Medicare patients for covered services that you provide, but as you will see on this Medicare.gov page, there are a couple of major caveats to consider: 1. The fee schedule that non-participating providers must...
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The Murky Pool of Non-Covered Services

  • According to Dr. Carter’s analysisof Medicare policy, there are three main reasons why Medicare would not cover a particular service: 1. It is a “statutory” exclusion. For PTs, such exclusions typically fall into the “prevention,” “wellness,” or “fitness” categories. In Dr. Carter’s words, “If you can document that the patient is not at your clinic due to a specific pain/injury/dysfunction, but r…
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to Enroll, Or Not to Enroll: That Is The Question

  • For most PTs, the number-one drawback to treating Medicare patients is the combination of shrinking reimbursements—due to initiatives such as Multiple Procedure Payment Reduction (MPPR)—and ever-increasing regulations and compliance requirements. As physical therapy business expert Chuck Felder writes in this blog post, “In my discussions with practice owners ar…
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Medicare Enrollment – Par Or Non-Par?

Running The Numbers

Enrolling in Medicare

Electing to Participate Or Not to Participate

  • As part of the application process a therapist can elect to enroll as PAR by submitting the Medicare Participating Physician or Supplier Agreement CMS 460 form. This is the same form that is used annually during the CMS open enrollment period. Participation in Medicare is on an annual calendar year basis, with open enrollment dates generally beginn...
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Violating The Assignment Agreements – Beware of Penalties

The Beneficiary, The Therapist and The Ca$H

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