What this means is that if you perform physical therapy with a patient for only five minutes, your timer resets before you begin the next activity. You cannot bill Medicare until you have worked with a patient on one activity for at least eight minutes. Current Procedural Terminology (CPT) Codes
Full Answer
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.
How much time do I need to provide for Medicare reimbursement?
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. 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 is the 8 minute rule for physical therapy billing?
Rehab therapists use the 8-Minute Rule—or the slightly variant “Rule of Eights”—to determine the number of units they should bill Medicare for the therapy services provided on a particular date of service. What every physical therapist needs to know about physical therapy billing .
What is the time-based code rule for 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. 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: 23 – 37 min = 2 units (etc). 5.
What is the 8-minute rule in therapy?
8-Minute Rule Basics Basically, a therapist must provide direct, one-on-one therapy for at least eight minutes to receive reimbursement for one unit of a time-based treatment code.
Who follows the 8-minute rule?
Introduced in December 1999, the 8-minute rule became effective on April 1, 2000. The rule allows practitioners to bill Medicare for one unit of service if its length is at least eight (but fewer than 22) minutes.
What is the AMA 8-minute rule?
The AMA uses similar guidelines as Medicare in that 1 unit equals 8 minutes. Where the AMA differs is that there is no cumulative restriction or adding of minutes, even for time-based codes. Every code will be allowed 1 unit for each 8 minutes performed.
How often does a PT have to see a Medicare patient?
The PT must recertify the POC “within 90 calendar days from the date of the initial treatment,” or if the patient's condition evolves in such a way that the therapist must revise long-term goals—whichever occurs first.
When reporting time based treatment time the therapist includes what time?
A treatment encounter note is required to include two-time elements: the total time-based treatment minutes and the total treatment minutes. The total treatment minutes includes both time spent providing time based and untimed code services.
What is the CPT time rule?
When only one service is provided in a day, providers should not bill for services performed for less than 8 minutes. For any single timed CPT code in the same day measured in 15 minute units, providers bill a single 15-minute unit for treatment greater than or equal to 8 minutes through and including 22 minutes.
Does Medicare follow 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.
Do Medicare Advantage plans follow 8-minute rule?
Medicare requires providers to adhere to the 8-Minute Rule; MA plans may not.
Does Aetna follow the 8-minute rule?
Billing Non-Medical Insurances Before the 8-minute rule, SPM was how services were billed to all patients, including Medicare beneficiaries. SPM is stilled used with Blue Cross Blue Shield, Aetna, Cigna, auto insurances (Geico, State Farm, AllState) and Workman's Comp.
How many days of therapy Does Medicare pay for?
Doctors can authorize up to 30 days of physical therapy at a time. But, if you need physical therapy beyond those 30 days, your doctor must re-authorize it.
How many physical therapy sessions do I need?
For a patient to achieve optimum benefits soon after diagnosis, most clinicians initially prescribe three visits per week. Your physical therapist will advise you as to the appropriate number of visits after your initial assessment.
Does 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.
How long do you have to be on Medicare for a treatment?
For time-based codes, you must provide direct treatment for at least eight minutes in order to receive reimbursement from Medicare. Basically, when calculating the number of billable units for a particular date of service, Medicare adds up the total minutes of skilled, one-on-one therapy and divides that total by 15.
How many minutes of treatment do you need to be on Medicare?
For time-based codes, you must provide direct treatment for at least eight minutes in order to receive reimbursement from Medicare. Basically, when calculating the number of billable units for a particular date of service, Medicare adds up the total minutes of skilled, one-on-one therapy and divides that total by 15. If eight or more minutes are left over, you can bill for one more unit; if seven or fewer minutes remain, you cannot bill an additional unit.
What is the 8 minute rule for rehab?
Rehab therapists use the 8-Minute Rule—or the slightly variant “Rule of Eights”—to determine the number of units they should bill Medicare for the therapy services provided on a particular date of service. Prev.
How many minutes of 97110 are in a single visit?
For example, say a therapist bills 10 minutes of 97110 and 10 minutes of 98116 in a single visit. Those codes are considered unique services, and are counted separately. Each service lasted longer than eight minutes, so the therapist can bill for two units total: one unit of 97110 and one unit of 98116.
What are the codes for a therapist?
Time-based (or constant attendance) codes, on the other hand, allow for variable billing in 15-minute increments. You would use these codes for performing one-on-one services such as: 1 therapeutic exercise (97110) 2 therapeutic activities (97530) 3 manual therapy (97140) 4 neuromuscular re-education (97112) 5 gait training (97116) 6 ultrasound (97035) 7 iontophoresis (97033) 8 electrical stimulation (manual) (97032)
How long is a manual therapy session?
Let’s say that on a single date of service, you perform 30 minutes of therapeutic exercise (EX), 15 minutes of manual therapy (MT), 8 minutes of ultrasound (US), and 15 minutes of electrical stimulation unattended (ESUN). To correctly calculate the charge in accordance with the 8-Minute Rule, you would add the constant attendance procedures ...
Do CPT codes include assessment and management time?
However, according to John Wallace, WebPT’s Chief Business Development Officer of Revenue Cycle Management (RCM), CPT codes actually do make allowances for assessment and management time.
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.
What is the purpose of Part B documentation?
From Medicare’s perspective, the primary purpose of all Part B documentation is to demonstrate that the care fully supports the medical necessity of the services provided. That means a Progress Report must clearly describe how the services are medically necessary for that patient.
Can progress reports be billed separately?
It’s also important to remember the time involved in writing a progress report cannot be billed separately. Like all documentation, Medicare considers it included in the payment for the treatment time charge. Progress Reports do not need to be a separate document from a daily treatment note.
Is rehabilitation therapy reasonable?
If an individual’s expected rehabilitation potential is insignificant in relation to the extent and duration of therapy services required to achieve such potential, rehabilitative therapy is not reasonable and necessary.”. In terms of rehabilitative therapy the terms improvement, expectation, reasonable and predictable period ...
How long can you bill for a 15 minute treatment?
Now, per Medicare’s 8-minute rule, you can bill for a full 15-minute timed treatment unit as long as you provided that service for at least 8 minutes, but as this blog post explains, it’s still imperative that you record the exact duration of each type of treatment you provide. 6.
Why is billing for every minute of a patient visit a red flag?
In fact, billing for every single minute of a patient visit would be a serious red flag, because it would be nearly impossible for a therapist to run an entire session of pure, continuous billable time.
How many billable minutes should I record?
Remember, when it comes to recording treatment time, almost doesn’t count; in other words, if you provided a particular timed treatment for 14 minutes, that’s how many billable minutes you should record. “Both treatment times and session times should be recorded to the exact minute,” this article states.
What should a therapist indicate in a soap note?
As for the documentation aspect, the therapist should be able to indicate the total visit time in the SOAP notes and also indicate the total direct time spent on each intervention. (If the therapist uses WebPT, there's actually a specific area in the SOAP note to make this distinction.)
Is documentation time billable for Medicare?
Documentation takes time—there’s no denying that. Even if you have an EMR system that streamlines the process, there’s still a lot of effort that goes into creating notes that are complete, correct, and compliant. Unfortunately, you won’t get paid for that effort, because as Pauline Watts, MCSP, PT, and Danna D. Mullins, MHS, PT, explain in this article, “Documentation time alone is not considered billable time under Medicare regulations.” The key word, however, is “alone”; the article goes on to explain that in some cases, you may be able to provide billable services at the same time you are documenting. Case in point: patient education, which includes any time dedicated to “discussing progress in therapy with the patient, including improvement in objective measures and how they are progressing toward their goals,” Watts and Mullins write. “If we are documenting this patient education information at the same time we are providing it to the patient, then this documentation time can be included in the treatment time.” One major caveat: the patient must actively participate in the conversation. That is, he or she cannot just sit passively and listen as you read or dictate your notes out loud. “Obviously not all documentation can be done in this manner and not all patients are appropriate to include in this educational process,” Watts and Mullins continue. “ [But the] practice of sharing the information with the patient has many extremely positive outcomes for the patient.”
Can a therapist bill Medicare?
Most payers, including Medicare, allow therapists to bill for the initial evaluations necessary to establish plans of care. (However, please note that, according to this ADVANCE article, therapists billing under Medicare Part A in a skilled nursing setting cannot bill for the “time it takes to perform the formal initial evaluation and develop the treatment goals and the plan of treatment cannot be counted as minutes of therapy received by the beneficiary.”)
Can you bill for unskilled prep time?
1. You can’t bill for unskilled prep time. Medicare reimburses for skilled time only. Thus, any unskilled time dedicated to preparing a patient or treatment area for therapy cannot be counted as billable time, even if you, the licensed therapist, are completing those tasks.
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.
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 often do you need to recertify a POC?
Sign the recertification, documenting the need for continued or modified therapy whenever a significant POC modification becomes evident or at least every 90 days after the treatment starts. Complete recertification sooner when the duration of the plan is less than 90 days, unless a certification delay occurs. CMS allows delayed certification when the physician/NPP completes certification and includes a delay reason. CMS accepts certifications without justification up to 30 days after the due date. Recertification is timely when dated during the duration of the initial POC or within 90 calendar days of the initial treatment under that plan, whichever is less.
How long does a HCPCS code have to be in a day?
CMS requires that when you provide only one 15-minute timed HCPCS code in a day, that you do not bill that service if performed for less than 8 minutes. When providing more than one unit of service, the initial and subsequent service must each total at least 15 minutes, and the last unit may count as a full unit of service if it includes at least 8 minutes of additional services. Do not count all treatment minutes in a day to one HCPCS code if more than 15 minutes of one or more other codes are furnished.
How long does a POC last?
The physician’s/NPP’s signature and date on a correctly written POC (with or without an order) satisfies the certification requirement for the duration of the POC or 90 calendar days from the date of the initial treatment, whichever is less. Include the initial evaluation indicating the treatment need in the POC.
What is a POC in rehabilitation?
Outpatient rehabilitation therapy services must relate directly and specifically to a written treatment plan (also known as the POC). You must establish the treatment plan/POC before treatment begins, with some exceptions. CMS considers the treatment plan/POC established when it is developed (written or dictated) by a PT, an OT, an SLP, a physician, or an NPP. Only a physician may establish a POC in a Comprehensive Outpatient Rehabilitation Facility (CORF).
Introduction
What Are Service-Based Cpt Codes?
- You would use a service-based (or untimed) code to bill for services such as: 1. physical therapy evaluation (97161, 97162, or 97163) or re-evaluation (97164) 2. hot/cold packs (97010) 3. electrical stimulation (unattended) (97014) In such scenarios, you can only bill for one code, regardless of how long you spend providing treatment.
What Are Time-Based Cpt Codes?
- Time-based (or constant attendance) codes, on the other hand, allow for variable billing in 15-minute increments. You would use these codes for performing one-on-one services such as: 1. therapeutic exercise (97110) 2. therapeutic activities (97530) 3. manual therapy (97140) 4. neuromuscular re-education (97112) 5. gait training (97116) 6. ultrasound (97035) 7. iontophore…
What’s The Deal with Mixed Remainders?
- Many times, when you divide the total timed minutes by 15, you get a remainder that includes minutes from more than one service. For example, you might have 5 leftover minutes of therapeutic exercise and 3 leftover minutes of manual therapy. Individually, neither of these remainders meets the 8-minute threshold. When combined, though, they amount to 8 minutes—…
So What Is The Rule of Eights?
- The Rule of Eights—which can be found in the CPT code manual and is sometimes referred to as the AMA 8-Minute Rule—is a slight variant of CMS’s 8-Minute Rule. The Rule of Eights still counts billable units in 15-minute increments, but instead of combining the time from multiple units, the rule is applied separately to each unique timed service. Therefore, the math is also applied separ…
Does Assessment and Management Time Count Toward The 8-Minute Rule?
- Often, therapists make the mistake of omitting assessment and management time when counting billable minutes. However, according to John Wallace, WebPT’s Chief Business Development Officer of Revenue Cycle Management (RCM), CPT codesactually do make allowances for assessment and management time. That time includes “all the things you have to do to deliver a…
What’s The Best Way to Avoid 8-Minute Rule Mistakes?
- The 8-Minute Rule has enough tricky scenarios to trip up even the whizziest math whiz. So, if you want to ensure accurate billing calculations, leave the long division to an EMR with built-in 8-Minute Rule functionality. WebPT automatically double-checks your work for you, alerts you if something doesn’t add up correctly, and lets you know whether you’ve overbilled or underbilled.