Medicare Blog

physical therapist in private practice who want to bill medicare should enroll

by London Hyatt Published 1 year ago Updated 1 year ago

If you are a physical or occupational therapist in private practice, even if you are not an owner, you will need to enroll in Medicare to get paid. Enrolling establishes you as a credentialed provider. In fact, if you are not a credentialed provider you cannot see any Medicare patients at all, even if they want to pay you cash for services.

If you are a physical or occupational therapist in private practice, even if you are not an owner, you will need to enroll in Medicare to get paid. Enrolling establishes you as a credentialed provider.

Full Answer

Do physical therapists need to enroll in Medicare?

If you are a physical or occupational therapist in private practice, even if you are not an owner, you will need to enroll in Medicare to get paid. Enrolling establishes you as a credentialed provider.

Can physical therapists accept self-payments from Medicare beneficiaries?

So now that we’ve defined the different relationships that Physical Therapists can have with Medicare, let’s address the question at hand based on each of those relationships. In this situation, it is only okay to accept self-payments from a Medicare Beneficiary if it is for a service that would not be covered by Medicare.

How do I bill Medicare for therapeutic exercise?

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.

Can a therapist Bill for the same service under Medicare Part B?

By contrast, therapists who practice in facilities and clinics that bill under Medicare Part B cannot bill separately for the same or different service provided to the same patient at the same time. That means therapists must limit total billing time to the exact length of the session.

Why doesn't Medicare cover PTs?

What is an ABN in Medicare?

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

Do Medicare Advantage plans follow CMS guidelines?

Can you issue an ABN and collect payment from a patient?

Can a PT be bound by Medicare?

Is therapy considered medically necessary?

See more

About this website

Does Medicare pay non participating providers?

Non-participating providers haven't signed an agreement to accept assignment for all Medicare-covered services, but they can still choose to accept assignment for individual services. These providers are called "non-participating."

Is physical therapy reimbursed by Medicare?

Does Medicare Cover Physical Therapy? En español | Medicare will pay for physical therapy that a doctor considers medically necessary to treat an injury or illness — for example, to manage a chronic condition like Parkinson's disease or aid recovery from a fall, stroke or surgery.

What types of providers can bill Medicare?

Medicare also covers services you get from other health care providers, like:Physician assistants.Nurse practitioners.Clinical social workers.Physical therapists.Occupational therapists.Speech language pathologists.Clinical psychologists.

Does Medicare cover DPT?

Medicare prescription drug coverage (Part D) usually covers all commercially available vaccines needed to prevent illness, including the Tdap shot.

How much does Medicare reimburse for 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 will Medicare not pay for?

In general, Original Medicare does not cover: Long-term care (such as extended nursing home stays or custodial care) Hearing aids. Most vision care, notably eyeglasses and contacts. Most dental care, notably dentures.

Why do doctors opt out of Medicare?

There are several reasons doctors opt out of Medicare. The biggest are less stress, less risk of regulation and litigation trouble, more time with patients, more free time for themselves, greater efficiency, and ultimately, higher take home pay.

How do providers get reimbursed by Medicare?

Traditional Medicare reimbursements When an individual has traditional Medicare, they will generally never see a bill from a healthcare provider. Instead, the law states that providers must send the claim directly to Medicare. Medicare then reimburses the medical costs directly to the service provider.

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 pay for 90715?

Immunizations, vaccinations, or inoculations are covered by Medicare only when there has been direct exposure of the associated disease to the patient and there is significant risk that the patient could contract the disease as a result of the exposure.

What is the Medicare cap for 2022?

For several years, the cap was $6,700, although most plans have had out-of-pocket caps below that level. For 2021, the maximum out-of-pocket limit for Medicare Advantage plans increased to $7,550 (plus out-of-pocket costs for prescription drugs), and it's staying at that level for 2022.

Credentialing by Medicare - CMS

Credentialing General Principles Credentialing is required for: All physicians who }À] À] } Z D K [ u u v oo K Z types of Health Care Professionals who provide

Help - Frequently Asked Questions (FAQs)

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Participating, non-participating, and opt-out providers - Medicare ...

If you have Original Medicare, your Part B costs once you have met your deductible can vary depending on the type of provider you see. For cost purposes, there are three types of provider, meaning three different relationships a provider can have with Medicare.A provider’s type determines how much you will pay for Part B-covered services. ...

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 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.

What is the KX modifier threshold for PT/SLP?

Another misperception relates to the KX modifier threshold of $2080 for PT/SLP combined and the same for OT care in 2020. Numerous people still believe the KX modifier functions like a hard cap and discharge patients from their care once they’ve reached that “cap”. This is incorrect. 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. Is the cost going to be worth the outcomes and is the treatment helping this patient either improve or not get worse?

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 the most important thing 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.

Does Medicare cover rehabilitation?

Another rule for providing rehabilitation care to a patient with Medicare is the patient’s condition must be complex enough to require the skilled care and knowledge of a PT/OT. Medicare considers the definition of skilled care based on the individual therapist’s state statute.

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.)

How much does it cost to have more than one therapist?

If your business is a partnership or has more than one owner the additional charge for each additional therapist is $150 per therapist.

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 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).

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.

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 the most common claim form?

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.

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.

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.

What is a PT in Medicare?

Physical therapists (PT) who are in private practice must meet the following applicable criteria to provide services for Medicare beneficiaries: • Graduated after successful completion of a physical therapist education program approved by one of the following: • The Commission on Accreditation in Physical Therapy Education (CAPTE).

Can a document contain a summary of the adverse actions taken?

Note: Documents containing a summary of the adverse actions taken or their resolution will not be accepted.

Does Medicare require additional documentation?

Medicare may require additional documentation, when applicable, to validate key information contained within the enrollment application (e.g., name change, tax identification number, proof of citizenship) or to address specific issues that could adversely affect a practitioner’s potential eligibility for enrollment (e.g., adverse legal actions, financial relationships).

Can a clinician collect co-payments from Medicare?

Once approved, in most circumstances, the clinician must submit claims to Medicare and can only collect applicable co-payments and deductibles from Medicare beneficiaries. For additional information, see ASHA's guidance regarding Medicare enrollment requirements [PDF].

Can private practitioners bill Medicare?

No. Those services are bundled into the prospective payment to the institution or paid to the home health agency per episode of care. Private practitioners can contract with hospitals, SNFs, or home health agencies, but the facilities are required to bill Medicare directly.

Can speech pathologists treat Medicare patients?

No. If the patient is not being treated under Part A of the Medicare benefit (i.e., inpatient or home health services), then the speech-language pathologist can treat a patient in his or her home. However, the place of service (POS) code on the claim form should reflect where the service was delivered. Additionally, speech-language pathologists should keep in mind that transportation costs—such as gas or time spent traveling to the patient's home—cannot be billed to Medicare.

Do speech pathologists need Medicare?

This means speech-language pathologists will need to get a national provider identifier (NPI) and complete the Medicare enrollment application (s). Once approved, in most circumstances, the clinician must submit claims to Medicare and can only collect applicable co-payments and deductibles from Medicare beneficiaries. For additional information, see ASHA's guidance regarding Medicare enrollment requirements [PDF].

Is speech language pathology covered by Medicare?

Speech-language pathologists in private practice will be reimbursed based on the Medicare Physician Fee Schedule (MPFS). ASHA's annual analysis of the MPFS rules provides information on procedures specific to speech-language pathologists related to the Medicare fee schedule.

Can speech language pathologists be a provider?

The Medicare Improvements for Patients and Providers Act (MIPPA) of 2008 allows speech-language pathologists to enroll as a Medicare provider. A physician order or referral is not required (unless required under state law), although the physician must approve the plan of care within 30 days and periodically thereafter. These Medicare required physician services can be rendered by a nurse practitioner or a physician assistant if consistent with state and local laws. Please visit ASHA's website for additional information on Medicare oversight rules that are contained in the Medicare Benefit Policy Manual.

Why isn't physical therapy covered by Medicare?

There are three reasons that Physical Therapy services would not be covered by Medicare: 1) The first is called a “Statutory” reason. The most important example of this is when a service would be considered “prevention,” “wellness,” or “fitness.”. 2) The next reason a service would not be covered is due to a “technicality.”.

How much can a non-participating provider bill Medicare?

Note: As a Non-Participating Medicare Provider, you can bill the patient up to 115% of the Medicare Fee Schedule.

How to submit a GA modifier to Medicare?

The GA Modifier tells Medicare that you have an ABN on file for the patient, and also prompts them to automatically deny the claim. After doing this once, you do not need to continue submitting claims for that patient’s non-covered services. (Please note that this paragraph is directed at those PTs who have a relationship with Medicare. If you are not enrolled in Medicare with a provider number, you cannot submit in any bill … even one with a GA Modifier to get a denial.)

When continuing care on a “maintenance” basis, should you not drop the pricing too far below the Medicare?

2) When continuing care on a “maintenance” basis, you should not drop the pricing too far below the Medicare fee schedule. If you do price your maintenance services below the fee schedule , it is probably best if these discounts are given as “same-day payment discounts.”

Does Medicare cover maintenance?

The Jimmo vs Sebelius case had an effect on how Medicare views and covers “maintenance” care. It is not the case that Medicare will now cover any and all care that would be considered “maintenance.” It’s a little more complex than that. To summarize the current cash-pay PT and maintenance care topic:

Do you need an ABN for a MC?

If you are going to provide services to a MC beneficiary that may not be considered “medically necessary” then it is mandatory to provide the patient with an ABN before the treatment is provided.

Does Medicare cover iontophoresis?

When a Medicare contractor will not cover certain commonly used treatments or modalities (like iontophoresis). As of 2013, the Medicare “Therapy Cap” coverage denial was moved into this “medical necessity” category.

Who is responsible for claims submitted on your behalf?

If you use a billing agency, you are responsible for the claims submitted on your behalf

What should be listed under "other name"?

If there is another name that the provider uses (e.g., a former legal business name, a DBA or “doing business as” name, etc.), then this should be listed under Other Name and check the appropriate box.

When a change of information is submitted, should it be submitted?

If you are Changing, Adding, or Deleting Information, a Change of Information should be submitted

Do you have to submit a copy of a lease agreement for PT/OT?

If any of the responses to the listed questions is “yes”, then you must submit a copy of the lease agreement that gives the group exclusive use of the facility for PT/OT services.

Can you list a P.O. box?

P.O. Boxes and Drop Boxes are not acceptable to list as where the records are maintained!

Why doesn't Medicare cover PTs?

For PTs, such exclusions typically fall into the “prevention,” “wellness,” or “fitness” categories.

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.

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. If they are not Medicare-covered (i.e., Medicare never covers them), then you could provide them on a cash-pay basis. In this case, an ABN would not be required, but you could issue a voluntary ABN as a courtesy to the patient.

Do Medicare Advantage plans follow CMS guidelines?

They also are required to follow the same guidelines for documentation and payment—unless their guidelines are more stringent than CMS guidelines. This is why we have seen them adding requirements for FLR reporting, compliance plans, etc. Bottom line: As a general rule of thumb, Medicare Advantage plans follow Medicare guidelines. (Check your provider's agreement to see if there is anything particular to your plan.) The same goes for Tricare and Medicaid. If they accept federal funding, Medicare billing and documentation guidelines apply unless the provider agreement is more strict.

Can you issue an ABN and collect payment from a patient?

So no, you could not issue an ABN and collect payment from the patient in this scenario.

Can a PT be bound by Medicare?

Thank you for reaching out! If the service is not covered by Medicare—under any circumstances—then the PT and the patient can agree to whatever fee they like for the service. They are not bound by the Medicare Fee Schedule.

Is therapy considered medically necessary?

Furthermore, therapy treatment is considered medically necessary “ if the type, amount, and duration of services outlined in the plan of care increase the likelihood of meeting one or more of these stated goals: to improve function, minimize loss of function, or decrease risk of injury and disease.”.

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 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 use is 5% below the standar…
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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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Introduction

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You became a physical therapist to help people; you didn’t do it for the money. 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. (How else do you plan to keep the lights on?) For physical therapists, physical the…
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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…
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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…
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