Medicare Blog

how to medicare part b billing for physical therapy

by Scot Carter Published 2 years ago Updated 1 year ago
image

If you’re in private practice—and you accept Medicare beneficiaries as a physical therapist, occupational therapist, or speech therapist in private practice—then you provide services that fall under Medicare Part B. However, if in doubt, always refer to your Medicare contract. (As a note, Part B is billed under the practice and therapist NPIs.)

Full Answer

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.

Is there a premium for Medicare Part B?

More: Ask Rusty – Does Paying SS Tax Now Increase My Benefit? Although you must pay Medicare Part A and Part B premiums to the federal government to obtain a Medicare Advantage plan, all your healthcare services are handled by the private Medicare ...

What is part B on Medicare?

When you sign up for Medicare, you’ll get coverage for most of your health care expenses. Part A helps pay for hospital costs and some skilled nursing care after an inpatient hospital stay. Part B helps pay for doctor visits and other outpatient ...

Is Physical Therapy covered by Medicare Part?

Original Medicare will pay for your physical therapy if your doctor decides it is medically necessary to treat your injury or illness. Medicare may also help cover physical therapy you get through home health care. Medicare does not limit how much it will pay for physical therapy in a given year.

image

How do I bill PT to Medicare?

Guidelines for Medicare's 8-Minute Rule8 to 22 minutes of treatment = 1 unit.23 to 37 minutes of treatment = 2 units.38 to 52 minutes of treatment = 3 units.53 to 67 minutes of treatment = 4 units.68 to 82 minutes of treatment = 5 units.Etc.

How do I bill Medicare Part B?

Talk to someone about your premium bill For specific Medicare billing questions: Call us at 1-800-MEDICARE (1-800-633-4227). TTY: 1-877-486-2048. For questions about your Part A or Part B coverage: Call Social Security at 1-800-772-1213. TTY: 1-800-325-0778.

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.

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 Medicare Part B reimbursement work?

The Medicare Part B Reimbursement program reimburses the cost of eligible retirees' Medicare Part B premiums using funds from the retiree's Sick Leave Bank. The Medicare Part B reimbursement payments are not taxable to the retiree.

Who processes Medicare Part B claims?

MACs are multi-state, regional contractors responsible for administering both Medicare Part A and Medicare Part B claims. MACs perform many activities including: Process Medicare FFS claims.

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.

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?

Physical Therapy CPT Codes97161 - Eval Low Complex.97162 - Eval Mod Complex.97163 - Eval High Complex.97001 - Evaluation Work Comp.97164 - Re-Eval.97002 - Re-Eval Work Comp.97750 - Test and Measure.97535 - ADL/Self Care.More items...

Does the KX modifier go first?

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.

What is KX modifier physical therapy?

The KX modifier is a Medicare-specific modifier that indicates a beneficiary has gone above their therapy threshold amount.

Does Medicare require modifiers for physical therapy?

**One last quick tip, for therapy businesses who have PTAs or OTAs, Medicare now requires that you use an assistant modifier, CQ for PTAs and CO for OTAs, for services performed.

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.

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”.

What determines Medicare Part B Reimbursement rates for Physical Therapy?

Different states have different reimbursement rates. Watch the video at the bottom of this article to learn how you can check reimbursement rates specific to your state.

Does Outpatient Physical Therapy In-The-Home Pay Different?

No, there is no different between Medicare Part B reimbursement for physical therapy service delivered in the home or in the clinic.

How do I Become a Contracted Medicare provider?

If you would like to learn more about contracting with Medicare as a physical therapist in private practice read this post: Click here

How long can a therapist bill for a supervised modality?

In the same 15-minute time period, one therapist may bill for more than one therapy service occurring in the same 15-minute time period where "supervised modalities" are defined by CPT as untimed and unattended -- not requiring the presence of the therapist (CPT codes 97010 - 97028). One or more supervised modalities may be billed in the same 15-minute time period with any other CPT code, timed or untimed, requiring constant attendance or direct one-on-one patient contact. However, any actual time the therapist uses to attend one-on-one to a patient receiving a supervised modality cannot be counted for any other service provided by the therapist.

How often is 97150 billed?

In private practice settings for physical and occupational therapists and in physician offices where therapy services are provided incident to the physician, Medicare expects the group therapy code (97150) to be billed only once each day per patient. In the facility/institutional therapy settings, the group therapy code could be applied more than once. However, the occasional situation where group therapy is billed more than once each day would require sufficient documentation to support its medical necessity and clinical appropriateness of providing more than one separate session of group therapy.

Can a therapist bill a patient separately?

Therapists, or therapy assistants, working together as a "team" to treat one or more patients cannot each bill separately for the same or different service provided at the same time to the same patient.

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 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.

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.

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.

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 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.

image

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

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 1 2 3 4 5 6 7 8 9