Medicare Blog

how to bill medicare for physical therapy

by Prof. Rozella Walsh Published 3 years ago Updated 2 years ago
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How does a physical therapist bill Medicare?

You must complete at least eight minutes of treatment be paid for one 15-minutes increment. So, for example, if you completed 17 minutes of treatment, Medicare would be billed for 15 minutes, or one unit. However, if you completed 23 minutes of treatment, Medicare would be billed for two units of treatment.Nov 1, 2019

Is the KX modifier only for Medicare?

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.Oct 8, 2018

What CPT codes can physical therapists bill?

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

Where do you put the KX modifier?

The KX modifier is appended on claims at or very close to the $1920 cap, and should not applied from the first visit, even if the therapist knows that the cap will likely be exceeded. At least one MAC has notified therapists that a pattern of early application of the KX modifier may be consider an abuse practice.Jan 14, 2014

When should KX modifier be used?

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 is KF modifier for Medicare?

Modifier KF is a pricing modifier. The HCPCS codes for DME designated as class III devices by the FDA are identified on the DMEPOS fee schedule by presence of the KF modifier.

What is the Revenue Code for physical therapy?

420Occupational,Physical and Speech TherapyRevenue CodeDescription420Physical therapy421Visit charge422Hourly charge423Group rate14 more rows•Mar 18, 2021

Is CPT code 97140 physical therapy?

CPT® code 97140: Manual therapy techniques, 1 or more regions, each 15 minutes (Mobilization/manipulation, manual lymphatic drainage, manual traction)

What is the Medicare 8 minute rule?

The 8-minute rule is a stipulation that allows you to bill Medicare insurance carries for one full unit if the service provided is between 8 and 22 minutes. As such, this can only apply to time-based CPT codes.Oct 31, 2016

Is KX a pricing modifier?

Modifier KX Use of the KX modifier indicates that the supplier has ensured coverage criteria for the billed is met and that documentation does exist to support the medical necessity of item. Documentation must be available upon request.May 4, 2018

What is the KV modifier?

KV Modifier - DMEPOS item subject to DMEPOS Competitive Bidding Program that is furnished as part of a professional service. J4 Modifier - DMEPOS item subject to DMEPOS Competitive Bidding Program that is furnished by a hospital upon discharge.

What is the KX modifier threshold?

For 2021 this KX modifier threshold amount is: $2,110 for PT and SLP services combined, and. $2,110 for OT services.

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.

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

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 contains coding guidelines that complement the Local Coverage Determination (LCD) for Outpatient Physical and Occupational Therapy Services (L33631).

ICD-10-CM Codes that Support Medical Necessity

It is the responsibility of the provider to code to the highest level specified in the ICD-10-CM. The correct use of an ICD-10-CM code does not assure coverage of a service. The service must be reasonable and necessary in the specific case and must meet the criteria specified in the related local coverage determination.

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.

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.

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.

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.

How long does a physical therapist have to be on Medicare?

The rule stipulates that you need to provide direct treatment for a minimum of 8 minutes to be reimbursed by Medicare for a time-based code.

What happens if you are not credentialed by Medicare?

If you are not credentialed, you will not be allowed to treat or collect payment from Medicare patients, even if Medicare offers cover for those services.

What is an ABN for Medicare?

An Advance Beneficiary Notice of Noncoverage (ABN) is a signed declaration that the client will accept financial responsibility if Medicare (and it’s likely they will) denies the claim.

When did the therapy cap start?

Introduced in 1997 , the Therapy Cap caps physical therapy and speech therapy services at a yearly amount, which does not reset for each diagnosis. You need to monitor your clients’ cap and apply for an exemption if the client needs medical necessary care despite exceeding their cap.

Is physical therapy a profitable business?

Physical therapy practice owners in America have a lot going on from scheduling and treating clients, to running a profitable small business covering marketing, accounting, and much more. If you have to add keeping track of PT Medicare billing nuances to the list, it’s more than most therapists can handle.

Hot Topics

Patient-Driven Groupings Model The PDGM is a shift away from volume-driven home health payment to a model that focuses on the unique characteristics, needs, and goals of each patient.

Medicare Coding

Multiple Procedure Payment Reduction and the Physician Fee Schedule The MPPR policy implements a 50% payment reduction to the practice expense value of certain CPT codes deemed "always therapy services."

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What is patient education in physical therapy?

Patient education is the cornerstone of physical therapy care. Whether they’re demonstrating exercises or providing information patients can use to improve their own health, PTs are just as much educators as they are caregivers. However, billing for education time isn’t exactly a clear-cut process. After all, there’s no specific code ...

What is the code for a therapist?

Therapists should report the code 98960 for individual patients, 98961 for groups of two to four patients, and 98962 for groups of five to eight patients. Furthermore, the curriculum must adhere to standards recognized by a physician society, the APTA, or another appropriate professional organization.

What is patient education?

The American Physical Therapy Association (APTA) defines patient education as “the process of informing, educating, or training patients/clients, families, significant others, and caregivers with the intent to promote and optimize physical therapy services.”. Instruction is essential to the physical rehabilitative process ...

Can a PT report COPD?

In some cases, a PT may be able to report codes from the Education and Training for Patient Self-Management code series. These codes are only appropriate for reporting education and training for self-management of specific illnesses such as arthritis, COPD, and asthma.

Is there a billing code for education time?

However, billing for education time isn’t exactly a clear-cut process. After all, there’s no specific code for patient education. Fortunately, if you document and report codes the right way, you can ensure payment for the time you spend coaching and educating your patients. Here’s how:

Can a therapist modify the curriculum?

However, the provider can modify the curriculum as needed. While Medicare bundles these codes—and many payers have followed that lead—not all payers have the same policy.

How long does a PT visit take?

According to this resource from the American Academy of Orthopaedic Surgeons, the average PT visit takes 45 to 60 minutes, which results in charges for about three and a half (3.5) weighted procedures (WPs) or one and a half (1.5) work relative value units (RVUs). Typically, 3.5 WPs per visit translates into three timed procedures and one modality. As the AAOS explains, if a PT regularly charges less than that, it could be due to one or more of the following factors: 1 The therapist sees too many patients in a workday. 2 The therapist does not apply all appropriate charges due, whether intentionally or unintentionally. 3 The therapist does not possess the clinical skills necessary to treat each patient effectively for an appropriate amount of time. 4 The therapist spends too much time on non-billable activities (e.g., education unrelated to current modalities, interaction with physicians, documentation, etc.). 5 The therapist erroneously applies Medicare billing rules to non-Medicare patient claims (e.g., 8-minute rule ).

What time does Medicare arrive at?

Pt 1: A patient with Medicare arrives at 9am for treatment. Pt 2: A patient with commercial insurance arrives at 9am for treatment. I am correct to assume that both may be seen at the same time, however, you can only bill for the one-on-one time spent directly for the patient with medicare. see more. −. +.

Why does a PT charge less than the AAOS?

As the AAOS explains, if a PT regularly charges less than that, it could be due to one or more of the following factors: The therapist sees too many patients in a workday. The therapist does not apply all appropriate charges due, whether intentionally or unintentionally.

Should physical therapists submit fraudulent bills?

This should definitely go without saying, but physical therapists should never, ever submit an intentionally fraudulent bill. This not only increases overall healthcare spending, but also saps away at taxpayer-funded programs like Medicare and Medicaid.

Can rehab therapists bill correctly?

For rehab therapists who bill correctly, that’s certainly true in many cases. But, as with most things RCM-related, billing correctly can be easier said than done—especially if you don’t have a team of dedicated billing experts.

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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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