Medicare Blog

how to bill for medicare as physical therapist

by Austin Mann Jr. Published 2 years ago Updated 1 year ago
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Medicare Billing Guidelines For Physical Therapists in the US

  1. Get Credentialed. Credentialing by Medicare allows you to become an in-network provider. ...
  2. Get Your Codes Right: ICD-10 and CPT Codes. If you want to bill Medicare for your services, you need to diagnose your patients’ conditions in such a way as ...
  3. Keep Detailed Treatment Notes. Part of adhering to Medicare billing guidelines for physical therapy is the discipline of keeping detailed treatment notes.
  4. Understand the 8-Minute Rule. The 8-minute rule determines the number of units that a physical therapist can bill Medicare for a particular date.
  5. Monitor Your Client’s Payments. Medicare has a copayment of 20% of the Medicare-approved amount under Medicare Part B (for outpatient therapy).
  6. Stay on Top of Your Billing. It’s one thing to keep an eye on the Medicare aspect of your billing (by monitoring co-payments, the therapy cap, and keeping signed ...
  7. Contact Medicare if You’re Uncertain. One thing we’d always recommend: when in doubt, pick up the phone. ...

For any service provided for at least 15 minutes you must bill 1 unit. Sometimes that's easy: if you provide 15 minutes of Therapeutic Exercise you bill 1 unit of that code, 30 minutes of Neuromuscular Re-education is 2 units of that code. However, this is where Medicare's totaling of the time complicates things.

Full Answer

Does Medicaid pay for physical therapy?

Physical therapy; Occupational therapy; ... so Medicaid recipients may be expected to pay a co-payment or pay a portion of the total cost. For example, when it comes ...

How much does Medicare Part B pay for physical therapy?

Medicare can help pay for physical therapy (PT) that’s considered medically necessary. After meeting your Part B deductible, which is $198 for 2020, Medicare will pay 80 percent of your PT costs. PT can be an important part of treatment or recovery for a variety of conditions.

What are the rules for Medicare physical therapy?

  • Your physician must certify the physical therapy services as medically necessary.
  • Physical therapy is part of your home health plan of care that details how many visits you need and how long each will last.
  • Your plan of care must be reviewed and renewed (if appropriate) at least every 60 days.
  • A qualified homebound therapist provides services.

More items...

Is Physical Therapy covered under Medicare?

Medicare will cover physical therapy under either Original Medicare Part A or Part B, or a Medicare Advantage Plan. Your coverage and how much you pay depends on your plan, your particular circumstances, and where you receive your therapy. Several conditions must be met for Medicare to cover your physical therapy.

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How does Medicare reimburse physical therapy?

However, in 2018, the therapy cap was removed. 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).

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.

What is the KX modifier for Medicare?

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.

How does billing work in physical therapy?

How Does Therapy Billing Work?A bill is submitted to the patient, third-party payer directly, or a 'claims clearinghouse' that prepares the bill.The claims clearinghouse will submit the bill to the payer. ... Copayments are collected at the time of service.

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.

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.

Is KX modifier for Medicare only?

Therapists should continue to affix the KX modifier to all medically necessary services above the designated limit ($2,010 in 2018), thus signaling Medicare to pay the claim. That means you must continue to track your patients' progress toward the threshold so you know when to affix the modifier.

What is a GY modifier used for?

The GY modifier must be used when physicians, practitioners, or suppliers want to indicate that the item or service is statutorily non-covered or is not a Medicare benefit.

What is modifier 97 used for?

Modifier 97- Rehabilitative Services: When a service or procedure that may be either habilitative or rehabilitative in nature is provided for rehabilitative purposes, the physician or other qualified healthcare professional may add modifier 97- to the service or procedure code to indicate that the service or procedure ...

What CPT codes can a physical therapist Bill?

Physical Therapy CPT Codes97161: Physical therapy evaluation, low complexity.97162: Physical therapy evaluation, moderate complexity.97163: Physical therapy evaluation, high complexity.

What codes can a physical therapist Bill?

Common Physical Therapy CPT Codes29240, 29530, 29540: Strapping.97110: Therapeutic Exercise.97112: Neuromuscular Re-education.97116: Gait Training.97140: Manual Therapy.97150: Group Therapy.97530: Therapeutic Activities.97535: Self-Care/Home Management Training.More items...•

How many units can you bill for PT?

Per Medicare rules, you could bill one of two ways: three units of 97110 (therapeutic exercise) and one unit of 97112 (neuromuscular reeducation), or. two units of 97110 and two units of 97112.

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”.

Why do you need to bill for physical therapy?

But in order to stay in business long enough to actually make a difference in your patients’ lives, you absolutely must bill—and collect payment— for your services.

When will rehab therapist assistants be paid?

In the 2019 final rule, CMS announced that, beginning in 2022, it will only pay 85% of services performed either in full or in part by a rehab therapist assistant. Thus, beginning in 2020, if a PTA performs at least 10% of a given service, then you must affix the CQ modifier to the claim line for that service, notifying Medicare about the assistant’s participation in the service. That said, payment reductions won’t occur until two years later.

What software do providers use to submit claims?

Software. A lot of providers use a billing software to prepare and submit their claims. The really smart ones use an electronic medical record system that includes (or integrates with) a top-notch therapy billing software (hello, WebPT ).

When to use modifier 59?

Practices and facilities that offer their patients both physical and occupational therapy may need to affix modifier 59 or modifier XP to claims when patients receive same-day services that form NCCI edit pairs. According to Castin, modifier XP would be appropriate if, say, “an OT takes over treatment in the middle of a PT session” and modifier 59 would be appropriate if the payer doesn’t yet recognize X modifiers or there’s another reason to provide “otherwise linked services that should, given the circumstances, be reimbursed separately.” For example, you would use modifier 59 if, say, a PT provides gait training (97116) and an OT provides therapeutic activity (97530). As such, you’re notifying Medicare that the services—97116 and 97530—were performed separately and distinctly from one another and thus, should both be paid.

What is CPT medical?

Developed by the American Medical Association (AMA), the Current Procedural Terminology (CPT®) is “the most widely accepted medical nomenclature used to report medical procedures and services under public and private health insurance programs.”.

How long does it take for a physician to sign a plan of care?

Initial certification: Medicare requires ordering physicians to “approve or certify the plan of care via signature in a timely manner (within 30 days of the evaluation).”. The initial certification covers the first 90 days of treatment.

Can you outsource billing to a PT?

If you’re looking for a more hands-off solution, you could always outsource your billing to a PT-specific billing service whose team of pros will handle all of your revenue cycle management, including maximizing your reimbursements and minimizing denials. That way, you don’t have to think about beefing up your billing staff or staying on top of the often-confusing claims process.

General Information

CPT codes, descriptions and other data only are copyright 2020 American Medical Association. All Rights Reserved. Applicable FARS/HHSARS apply.

CMS National Coverage Policy

Title XVIII of the Social Security Act, §1833 (e) states that no payment shall be made to any provider for any claim that lacks the necessary information to process the claim

Article Guidance

The information in this article contains billing, coding or other guidelines that complement the Local Coverage Determination (LCD) for the Outpatient Physical Therapy L34428 LCD.

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 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.

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 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.

Is it better to audit Medicare or defend?

Of course, the best defense is a good offense. Setting your practice up to comply with the Medicare rules is much better than having to address an audit. To audit proof yourself, be sure you know the rules and regulations on document/billing and fully comply.

How many minutes of therapy do you need for Medicare?

The 8-Minute Rule. The 8-Minute rule as known as “the eight rule” specifies how many support unit therapists will bill Medicare for the given service date. In order to obtain reimbursement from Medicare for a time-based code, you must have direct treatment for at least eight minutes, according to the law. However, although it sounds basic, there ...

What is the therapy cap?

The Therapy Cap. The therapy cap was planned as a provisional solution to regulate Medicare costs and was announced as part of the Balanced Budget Act (BBA) of 1997. Despite a long-term force to cancel the cap, Congress lasted to renew the cap every year from its establishment.

What is an ABN in Medicare?

ABNs. Patients should sign an Advance Beneficiary Notice of Noncoverage (ABN) in order to offer Medicare patients services that they consider are not covered by Medicare or not required medically. This means that the patient will bear the financial cost of treatment if claims are declined by Medicare. Tags.

What does the GA modifier mean on a claim?

If you declare an ABN because you think that specific services are not reasonable and medically required, then the GA modifier should be incorporated into the claim to indicate that you have an ABN on file.

When is a POC change required?

Change into the POC is required if the patient is unable to respond to the treatment given in the current POC. You discover additional clinical findings in the course of treatment, which are somehow similar to the original treating condition.

Can you waive copays?

Copays. If he or she is expected to pay a copayment through your patient’s policy, you can receive the payment when you offer your services. In most cases, waiving copayments or deductibles isn’t a good idea. There are however other avenues in which you can offer support to patients in need.

Do physical therapists have to have billing information?

Yeah, no wonder you’ve got less time than you would like to keep up with all the ins and outs of physical therapy billing. For a physical therapist, it is necessary to have thorough information and all ins and outs of physical therapy billing. The following are the most important rules for physical therapy billing.

How to enroll a physical therapist in Medicare?

For a physical therapist to enroll as a Medicare Part B provider the following steps must be followed: 1.) You must create your Medicare I&A account login. 2.) You must apply for a personal NPI (Type 1) 3.) You must apply for an organizational NPI (Type 2) for your business. 4.)

What is Medicare 855b?

The CMS 855i is the individual enrollment for a sole proprietor or a sole owner. The CMS 855b is the enrollment application for a clinic or group practice. The 855r is the reassignment of benefits. YouTube. Learn Medicare Billing for PT, OT, SLP. 2.64K subscribers.

Do physical therapists have to enroll in Medicare?

Does a Physical Therapist Need To Enroll In Each Medicare Advantage Plan? You are not automatically enrolled as a Medicare Part C ‘aka’ Medicare Advantage plan provider simply because you are enrolled in Medicare part B. If you would like to become an in network provider with Medicare Advantage plans you must enroll individually in each plan.

What is the CPT code for massage therapy?

3. Therapeutic Massage. It’s always important to check your state practice act, but in most cases, physical therapists can bill CPT code 97124 (massage therapy) when they provide therapeutic massage.

What is Medicare code 97763?

97763: Orthotic and Prosthetic Management. For Medicare, therapists should use L-codes, which “are the HCPCS codes providers must use when billing for splints, braces, and any other services related to assessment, fabrication, and supplies—including follow-up.”. 6.

Can a therapist bill for dry needling?

Furthermore, “Therapists should never bill beyond what they would normally bill in the absence of student assistance.”. 8. Dry Needling. While PTs can often bill for dry needling services, it ultimately depends on the state’s—and the payer’s—rules.

Does Medicare pay for therapists?

According to this CMS document, “Medicare pays only for skilled, medically necessary services delivered by qualified individuals, including therapists or appropriately supervised therapy assistants. Supervising patients who are exercising independently is not a skilled service.” It is safe to assume that most private payers adhere to this same rule.

Can a physical therapist bill for a physical therapy appointment?

Simply put, if a service is rendered by an occupational therapist, a physical therapist cannot bill for that service. However, most payers—including Medicare Part B—allow PTs and OTs to bill for services provided to the same patient on the same date of service.

Can a physical therapist bill for DME?

Physical therapists can bill for DME, but they must first obtain a DMEPOS number. As we explain in this post, “Medicare considers physical therapists ‘suppliers,’ but DMERCs won’t see you that way until you obtain this number.”. You’ll also need to be sure you pick the right code when billing for DME.

Can PTs provide virtual services?

As of the publication date of this article , many states have allowed PTs to provide virtual services—if only temporarily. Furthermore, CMS has provisionally added PTs to its list of telehealth-eligible providers for the duration of the public health emergency period. On the commercial insurance side, many payers allow PTs to bill for telehealth services—some of which have had that policy in place since before the pandemic. Ultimately, you should check both your state practice act as well as each individual payer’s current rules regarding telerehab before you provide any virtual services.

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Introduction

What Are The Codes?

  • The International Classification of Diseases
    In order to successfully bill for your services, you’ll need to diagnose your patients’ conditions in a manner that demonstrates the medical necessity of those services—and you’ll need to do so using the latest version of the International Classification of Diseases (ICD), which, as of October 2015…
  • The Current Procedural Terminology
    Developed by the American Medical Association (AMA), the Current Procedural Terminology (CPT®) is “the most widely accepted medical nomenclature used to report medical procedures and services under public and private health insurance programs.” According to the …
See more on webpt.com

What’s The Terminology?

  • Looking for a refresher on your billing terminology? Here are some definitions we’ve adapted from this APTA resource and this WebPT oneto bring you back up to speed: 1. Treatment:Includes all therapeutic services. 2. Time-based (constant attendance) CPT codes:These codes allow for variable billing in 15-minute increments when a practitioner provides a patient with one-on-one s…
See more on webpt.com

What Are The Forms?

  • Today, most payers—and providers—prefer electronic claim forms. However, some payers—a dwindling few—do still accept paper ones. The most common form is the Universal Claim Form (CMS 1500), although some payers may request that you use their own. Once you provide your services, you’ll submit a bill to either your patientor a third-party payer. Occasionally, you may act…
See more on webpt.com

What’s The Process?

  • Get credentialed.
    If you haven’t already received credentialing, you may want to consider changing that. Being credentialed by an insurance company allows you to become an in-network provider, which may help you reach—and serve—a larger pool of potential patients. Some payers—like Medicare—do …
  • Negotiate payer contracts.
    Just as rules are (sometimes) meant to be broken, contracts are (always) meant to be negotiated. This especially holds true when it comes to your private payer contracts. After all, these rates establish what you’re able to earn—and that number should be an accurate reflection of the valu…
See more on webpt.com

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