Medicare Blog

how to bill medicare in the therapy industry

by Greta Pagac Jr. Published 2 years ago Updated 2 years 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. If you are not credentialed,...
  2. Get Your Codes Right: ICD-10 and CPT Codes. If you want to bill Medicare for your services, you need to diagnose your...
  3. Keep Detailed Treatment Notes. Part of adhering to Medicare...

Full Answer

Can a therapist Bill under Medicare Part A?

If you bill under Medicare Part A, therapists can bill separate treatment sessions as long as the therapists are from different disciplines and provide different treatments. When can you bill for a re-evaluation?

How do therapists bill for services?

In other words, the therapist of one discipline may bill for the entire service or the co-treating therapists of different disciplines may divide the service units.

Do Medicare billing guidelines apply to physical therapy?

If a fair percentage of your clients have Medicare insurance, it’s important to understand Medicare billing guidelines for physical therapy and what you need to do in order to ensure that the highest possible number of claims are settled quickly and in full.

What is therapy billing software and how does it work?

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 ). That way, they eliminate double data-entry—as well as the errors associated with it.

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Can a therapist bill Medicare?

Medicare has covered psychiatrists, psychologists and clinical social workers since 1989, but does not cover Licensed Professional Counselors (LPC's).

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 much does Medicare reimburse for therapeutic exercise?

Therapeutic exercise (97110) will drop by an average of 3.3%, going from $31.40 to $30.36. Manual therapy (97140) sees a similar percentage decrease, from $28.87 to $27.91.

Does Medicare reimburse me for psychotherapy?

Yes, Medicare covers mental health care, which includes counseling or therapy. Depending on your needs, mental health care can be provided in a variety of settings. The goal is to get the right kind of support when you need it. Mental health pertains to our emotional, psychological, and social well-being.

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 KY modifier used for?

The KY Modifier is used to identify a wheelchair accessory that is for use with a base that was not part of the competitive bid program. This modifier is only for use in former competitive bid areas and is important to ensure appropriate pricing on the wheelchair accessories.

How do you calculate CPT reimbursement rate?

You can search the MPFS on the federal Medicare website to find out the Medicare reimbursement rate for specific services, treatments or devices. Simply enter the HCPCS code and click “Search fees” to view Medicare's reimbursement rate for the given service or item.

What does CPT code 97530 pay?

The 97530 CPT code involves the use of functional activities (e.g., bending, lifting, carrying, reaching, catching, and overhead activities) to improve functional performance in a progressive manner. The activities are usually directed at a loss or restriction of mobility, strength, balance, or coordination.

Does Medicare pay for CPT 97140?

Also, Medicare NCCI edits categorized 97140 as a component of CMT, unless a modifier (e.g., -59) is used for a different region(s). However, Medicare law prohibits coverage and payment for non-CMT services. Thus, if 97140 is bundled with or into CMT, it would be a violation of Medicare law.

How Much Does Medicare pay for 90837?

$132.69What is the difference between the “facility rate” and “nonfacility rate” for telehealth services?CodeService2021 Facility Rate90832Psychotherapy 30-minutes$68.7490837Psychotherapy 60-minutes$132.6996132Neuropsych Test Eval$106.0896158Hlth Bhvr Intrv Indvl$58.971 more row•Dec 10, 2021

How Much Does Medicare pay for psychology?

Medicare will rebate you $124.50 for a 50+ minute session (or $84.80 for 30-50 minutes) with a clinical psychologist on a mental health treatment plan. If the actual cost for a session is greater than this, you'll have to pay the difference.

How many therapy sessions does Medicare cover?

Although Medicare does not have a spending limit on physical therapy sessions, once the cost reaches $2,110, a person's healthcare provider will need to indicate that their care is medically necessary before Medicare will continue coverage.

Is CPT copyrighted?

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

Can Medicare bill for non-covered services?

Notice:It is not appropriate to bill Medicare for services that are not covered (as described by the entire LCD) as if they are covered. When billing for non-covered services, use the appropriate modifier.

Is CPT code 97537 payable?

CPT code 97537 is not payable. Community reintegration training is performed in conjunction with other therapeutic procedures and is bundled into the payment for these other services. Therefore, the services are not separately reimbursable. Work reintegration training is not payable per the LCD.

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.

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.

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.

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 modifier 59?

Modifier 59 – if you provide two distinct services during the same treatment period, you may need to apply for modifier 59.

What is billing unit?

A medical billing unit is the number of times the service was performed, and your total time is dictated by how many total units of time-based services you provide:

What do I need to get a physical therapy license?

In order to get credentialed, you will need malpractice insurance, an NPI ( National Provider Identifier ), a physical practice location, and a license to practice physical therapy in your state.

How many minutes of therapy do you need to bill Medicare?

According to the rule, you must provide direct treatment for at least eight minutes in order to receive reimbursement from Medicare for time-based codes. Learn everything you need to know about the 8-Minute Rule.

When did CMS start reducing Medicare payments to therapists?

In 2011, CMS began reducing payments to therapists when they performed multiple therapeutic procedures on one patient during the same date of service. This policy is known as the Multiple Procedure Payment Reduction (MPPR). During the pioneer years of MPPR—January 1, 2011 to March 31, 2013—PTs, OTs, and SLPs saw a 20% reduction to the practice expenses (PE) they billed to Medicare for these “always covered” services. Since April 2013, that figure has increased significantly, as therapists now must contend with a 50% cut to their PE when performing these services. Learn four key things you should know about MPPR changes here and how to manage MPPR in your clinic here.

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.

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 do you need to apply modifier 59?

You may need to apply modifier 59 if you provide two wholly separate and distinct services during the same treatment period. Learn more about modifier 59 here.

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.

How many minutes does a provider have to bill for therapy?

Although the total number of minutes adds up to 18, they still only get to bill for one unit. In order to bill for more units, the provider needs to spend at least 8 minutes of time on each service, following the 8-minute Rule for therapy billing.

How many units are in a therapy bill?

The answer is 5 billable units. This is because the first two services add up to 60 minutes and can be broken down into 4 perfect 15-minute increments, allowing them to bill for four units. The remaining 14 minutes of services have to be applied to the 8-minute rule for therapy billing.

How many minutes does a provider need to add up to a bill?

They need to add up the total number of minutes spent on services and divide that by 15. For example, if a provider offers services lasting 9, 10, 11 minutes, they need to add up all of the minutes and divide by 15. 30 minutes divided by 15 equals 2 billable units. Billing for the 8 Minute Rule: Example of when the 8 Minute Rule Applies:

What is the 8 minute rule for CPT?

Billing units can be split into two categories, Service-Based CPT (Common Procedural Technology) codes and Time-Based CPT codes. The 8-minute rule for therapy is a time-coded stipulation that allows providers to bill Medicare insurance payers for one billing unit of service. Time-based codes are determined by the amount of time a provider spends with a client in which they are delivering services that are tied to that code. Calculating these types of billing units can be frustrating, especially when time spent with a patient does not break down into perfect increments. CPT guidelines state that time-codes should be broken down into 15-minute increments. When the time does not divide evenly into 15-minute segments, the 8 Minute Rule for therapy billing applies. It is what payers use to determine the number of units a provider should bill for.

How many minutes should a CPT be broken down?

CPT guidelines state that time-codes should be broken down into 15-minute increments. When the time does not divide evenly into 15-minute segments, the 8 Minute Rule for therapy billing applies. It is what payers use to determine the number of units a provider should bill for.

How long is the last service for a therapist?

The last service, however, only lasted 5 minutes, making it not billable under the 8-minute rule for therapy billing. This means that the provider could bill for 5 total units. While the 8-minute rule for therapy billing can be complicated, understanding it can help a provider greatly improve their bottom line.

How long does Medicare bill mental health?

A large portion of mental health organizations submit claims to Medicare on a regular basis. This means that they should be familiar with the 8-minute rule for billing. While many providers are familiar, they have yet to perfect the process.

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 co-treatment in a therapist?

The American Occupational Therapy Association (AOTA), American Physical Therapy Association (APTA), and American Speech-Language-Hearing Association (ASHA), designed combined guidelines for Medicare Part A and Part B, which states that therapists should only co-treat a patient to have direct benefits to a patient.

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 is a KX modifier?

KX Modifier. This modifier is a part of the automatic therapy cap exceptions process. If the patient is reached the therapy cap to continue treatment and you think it is medically required for the patient then your reasons for continuing therapy can be documented by attaching KX modifier.

What does a physical therapist do?

As a specialist in physical therapy, you have a lot to do — from treating patients and monitoring data on results to running a sustainable business to receiving fees for your services. 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.

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.

Does insurance cover massage therapy?

For private payers, you must call the insurance company and find out if they cover massage as performed by a Licensed massage therapist, or if they cover it if done by the LMT but supervised by a Physician. They may cover under both scenarios. (If by "physician" you mean "chiropractor", the LMT may have to be a Certified or Licensed Chiropractic ...

Does LMT have to be supervised by a physician?

The written prescription should be sent to the ins. co with each bill. The LMT does not necessarily have to be supervised by a Physician in the case of MVA/WC, but even if they are, the insurance should pay for it, again, with the prescription.

Does Medicare pay for massage therapy?

A Licensed Massage Therapist can bill those codes under the Physician they are supervised under; Medicare does not pay for those codes, but private payers, WC, and MVA may, depending on the patient's policy.

Do you need a prescription for a massage?

You may need a referral or prescription from the Physician in order to be paid. For WC and MVA, depending on the laws of your State, the codes you mentioned should be covered if performed by a Licensed Massage Therapist if the patient has a written prescription for the massage from a Physician.

Can LMT bill for 97112?

The LMT can bill for 97110 and 97112, but the documentation needs to be very specific as to what they are doing to justify these codes. I used to bill for a Chiropractor and many private payers did not understand what neuromuscular re-education (97112) was - we had to send a letter explaining what it was and where/what in the doctor's note described/showed that therapy was being done.

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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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