Medicare Blog

when does medicare cut reimbursement to pta

by Prof. Geraldine Swaniawski Published 2 years ago Updated 1 year ago
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Jan. 1, 2022

When do the PTA Medicare cuts go into effect?

These modifiers have been finalized and went into effect on January 1, 2022, including the PTA Medicare cuts. Are PTAs Being Phased Out in 2022?

Will Medicare pay for PTA services in 2022?

Beginning in January 2022, payment for Medicare Part B services provided by PTAs will be reduced by 15% due to a provision in the Balanced Budget Act of 2018. The SMART Act would delay implementation, spare rural and underserved areas, and relieve PTA supervision burdens.

What is the implementation date of Medicare Part D for PTAs?

Implementation Date: January 3, 2022 Provider Types Affected This MLN Matters Article is for physical and occupational therapists and therapy providers billing Medicare administrative Contractors (MACs) for services of physical therapist assistants (PTAs) and occupational therapy assistants (OTAs) provided to Medicare patients.

How will Medicare reimbursement change for physical therapy assistants?

In short, reimbursement for partial and full services provided by physical therapy assistants and occupational therapy assistants will be slashed by 15% from the Medicare physician fee schedule. The payment shift is due to arise when the 2022 Medicare Physician Fee Schedule goes into effect on Jan. 1, 2022.

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How will Medicare cuts affect PTAs?

In short, reimbursement for partial and full services provided by physical therapy assistants and occupational therapy assistants will be slashed by 15% from the Medicare physician fee schedule.

What does Medicare reimburse for physical therapy?

Coverage and payments Once you've met your Part B deductible, which is $203 for 2021, Medicare will pay 80 percent of your PT costs. You'll be responsible for paying the remaining 20 percent. There's no longer a cap on the PT costs that Medicare will cover.

Will PTA be phased out?

While PTAs aren't being “phased out,” recent changes to the physical therapy fee schedule created a 6% cut in payments for physical therapy services with an additional 15% deduction from therapy assistant services. Combined, PTAs can expect to be paid 21% less in 2022 than they were in 2020.

What is the PTA modifier?

Beginning January 1, 2020, CMS requires the use of the CQ modifier to denote outpatient therapy services furnished in whole or in part by a physical therapist assistant (PTA) in physical therapist (PT) private practices, skilled nursing facilities, home health agencies, outpatient hospitals, rehabilitation agencies, ...

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 8 minute rule?

The 8-minute rule states that to receive Medicare reimbursement, you must provide treatment for at least eight minutes. Using the “rule of eights,” billing units that are normally based on 15-minute increments spent with a patient can be standardized.

What state pays physical therapist assistants the most?

Best-Paying States for Physical Therapist Assistants The states and districts that pay Physical Therapist Assistants the highest mean salary are California ($70,570), Connecticut ($69,940), Texas ($69,900), New Jersey ($69,310), and Rhode Island ($67,300).

Is it worth being a PTA?

This position commands a respectable salary—the BLS reports a median annual salary of $58,040 for physical therapist assistants in 2018. Those working in nursing care facilities and home healthcare services earned the most.

How can PTA make more money?

If you are a PTA and need ways to earn extra income, you can use your skills to make more money in the following ways:Pick up weekend hospital shifts.Contact home health agencies for weekend opportunities.Work at nursing homes or clinics on a PRN or part-time basis for a higher rate.

Does Medicare require modifiers for physical therapy?

There is one threshold amount for PT and SLP services combined and a separate threshold amount for OT services. Medicare will deny your claims for therapy services above these amounts without the KX modifier.

Can a PTA bill for 97110?

The 7 minutes of 97110 furnished by the PTA do not result in billable service. However, document them within the total treatment time.

What are the new modifiers for 2020?

Beginning in 2020, Medicare is requiring claims to include new modifiers showing when therapy is provided by a PTA or COTA. The PTA modifier is CQ and the COTA modifier is CO. (The GP, GO and KX modifiers will continue to be required.)

How did this happen?

In the bipartisan Balanced Budget Act of 2018, legislators from the house of Representatives introduced this at the 11 th hour.

What you can expect

These cuts will go into effect January 2022, along with other reductions to the Medicare fee schedule that were made to a wide range of health care disciplines, including physical therapy and occupational therapy, to offset the recent boost in payment to primary care physicians for E/M services.

Advocacy

The APTA is aggressively advocating for the PTA payment differential to be modified; at the very least delayed. With COVID-19 still looming across the United States, many practices have not rebounded fully economically and operationally. Delaying the payment differential will allow practices to figure out a plan and make adjustments internally.

When will modifiers be required for Medicare?

If this rule becomes final, you would be required to begin applying these modifiers where applicable on January 1, 2020. The change in reimbursement would begin with visits on or after January 1, 2022.

What is the CMS rule for 2020?

The 2020 CMS (Centers for Medicare & Medicaid Services ) proposed rule has been released. This is the first chance that we all have to see what CMS is planning for next year. One of the biggest changes proposed is to PTA/OTA billing policies. This change will impact the modifiers you use and ultimately the reimbursement that you receive for services provided by PTAs/OTAs. This change was first discussed in last year’s rule but there were many questions then and some of the 2019 rule was held off. CMS is attempting to provide some additional clarity in this year’s rule but, in doing so, potentially creating more requirements.

What is therapeutic services?

Therapeutic services include all timed and untimed coded procedures and modalities including initial evaluations and re-evaluations.

Does Medicare have a compliance program?

Medicare is making changes to catch up with legislation. There will be substantial financial, operational and compliance impacts that you need to start preparing for. In addition, your advocacy can help in letting CMS know if you feel that these changes are overly burdensome to your practice. MWTherapy provides a full suite of physical therapy software tools to help you with all aspects of your practice, including keeping up with Medicare’s ever-changing compliance requirements.

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”.

When are modifiers applied to a claim?

The proposal stipulated, among other things, that the modifiers be applied to the claim when services were delivered concurrently with a physical therapist (PT), and required all codes to be accompanied by a written explanation of why the modifier was or wasn't used.

How many MIPS providers are required to perform the same activity for 90 days?

Groups will be able to attest to an improvement activity when at least 50% of the MIPS-eligible clinicians perform the activity, at a rate of at least 50% of the group's providers with a National Provider Identifier (NPI) performing the same activity for the same 90 continuous days in the performance period.

Is Medicare fee schedule budget neutral?

What was proposed: The Medicare physician fee schedule is budget-neutral. To increase values for the E/M codes while maintaining budget neutrality under the fee schedule, CMS proposed cuts to other codes to make up the difference beginning in 2021.

Does CMS cover dry needling?

Dry needling codes have been added—but CMS won't be covering them. The final rule adds 2 dry needling codes (1 for insertions in 1-2 muscles, and another for insertions in 3 or more), but the codes will remain unpaid unless a national coverage determination says otherwise.

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