Medicare Blog

when will reduction in medicare payment for otas and ptas take effect

by Tremayne Douglas Published 2 years ago Updated 1 year ago
image

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.

Full Answer

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?

How will the PTA/Ota billing changes impact you?

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.

What are the new payment modifiers for PTAs and OTS?

To manage the billing logistics of this cut, CMS created new payment modifiers: CQ for PTAs and CO for OTAs. Although these lower rates won’t take effect until 2022, PTs and OTs must start using the modifiers in 2020, affixing them to claim lines whenever a PTA or OTA provides more than 10% of a service.

What is the reduced PFS payment for PTA/Ota services?

The reduced PFS payment for PTA/OTA services also applies to institutional therapy providers, including comprehensive outpatient rehabilitation facilities, with the exception of critical access hospitals and other providers that aren’t paid using Medicare Physician Fee Schedule (MPFS).

image

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.

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 Much Does Medicare pay for 97161?

For example, in 2020, use of evaluation CPT codes 97161-97163 resulted in a payment of $87.70; that payment increases to $101.89 in 2021.

Which physical therapy assistant setting pays the most?

Private facilities generally pay more than public ones, and among those, home health care services, SNFs and ALFs pay the highest for PTA services.

What is the therapy cap for 2021?

​Beginning January 1, 2021 there will be a ​cap​ ​of ​$2110.00 ​per year ​for Physical Therapy and Speech-language pathology together. A separate cap of $2110.00 per year is allowable for Occupational Therapy Services. Medicare ​pays 80% of allowable charges.

What will be the Medicare premium for 2021?

The Centers for Medicare & Medicaid Services (CMS) has announced that the standard monthly Part B premium will be $148.50 in 2021, an increase of $3.90 from $144.60 in 2020.

What is the 2021 CMS conversion factor?

34.8931CMS has recalculated the MPFS payment rates and conversion factor to reflect these changes. The revised MPFS conversion factor for CY 2021 is 34.8931. The revised payment rates are available in the Downloads section of the CY 2021 Physician Fee Schedule final rule (CMS-1734-F) webpage.

What CPT code did 97161 replace?

The new evaluation codes reflect three levels of patient presentation: low-complexity (97161), moderate-complexity (97162), and high-complexity (97163), and replace the 97001 code.

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.

What state pays PTAs the most?

Texas1. Texas. It pays the highest salary, has the greatest expected job growth, and currently employs the most PTAs.

Why dont physical therapists get paid more?

It comes down to three reasons why physical therapists are broke: High Student Loans. Low Starting Salaries. Lifestyle Creep.

How do physical therapists get rich?

8 ways to make extra money as a physical therapistPick up extra physical therapy shifts. ... Provide telehealth services. ... Become a physical therapy consultant. ... Offer home therapy services. ... Become a personal trainer. ... Become a first aid course instructor. ... Get into healthcare and physical therapy freelance writing.More items...•

Does Medicare reimburse physical therapy?

Medicare can help pay for physical therapy (PT) that's considered medically necessary. After meeting your Part B deductible, Medicare will pay 80 percent of your PT costs. PT can be an important part of treatment or recovery for a variety of conditions.

How Much Does Medicare pay for 97140?

Payment = Conversion Factor * (RVU + RVU + RVU )2017 Payment2018 Payment97161 (1 unit)$90.60$94.8997110 (1 unit)$27.13$26.0997140 (1 unit)$25.09$23.83Total$143.67$144.81Dec 27, 2017

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.

Does Medicare cover physical therapy for back pain?

Summary: Medicare may cover diagnostic tests, surgery, physical therapy, and prescription drugs for back and neck pain. In addition, Medicare Advantage plans may cover wellness programs to help back and neck pain. Medicare generally doesn't cover chiropractic care.

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.

Q: What are the key changes in the 2o22 fee schedule and final rule?

PTs will see ~3.7% reduction in payment and OTs will see ~3.9% reduction in payment.

Q: What is the order of payment reductions on a claim with the CQ or CO modifier?

A: For the therapy services to which the 15% reduction applies, payment will be made at 85% of Medicare’s (80% payment). This is based on the lesser of the actual charge or applicable fee schedule amount for claims with a CQ or CO modifier.

Q: Do we still have the direct supervision rule where a PT has to be present in an outpatient private setting?

A: The physical therapist is required to be onsite with the PTA as part of the Direct Supervision rule in a private practice under Medicare. During the pandemic, therapists were granted a form of “general supervision” which allows audio visual supervision as an alternative to direct supervision.

Q: How many evaluations can we bill in a year? What length of time? ex: every 30 days, 60 days etc

What does your Practice Act state regarding the therapist’s responsibility/requirement for evaluating new patients and/or conditions? If it stipulates specific requirements, those must be followed regardless of payment for services.

Q: What is Locum Tenens?

A: Locum Tenens (Fee-for-Time) is the use of a substitute provider to cover for an enrolled provider in his or her absence in specific situations. There is an important bill on the Hill entitled Nationwide PT/OT Access to Locum Tenens, S2612 & HB1611, which we encourage you to support.

Q: If the Access to Locum Tenens bill goes through, will it be available for Medicaid as well?

A: We don’t know. Medicaid has state policies, and those policies have to be dealt with on the state level. Policies can vary from state to state and that may be one area that may not follow Medicare coverage policies.

Q: What is the status of Sequestration going into 2022? Will the sequestration be reinstated?

A: Sequestration is a 2% reduction in payment that has been mandated since 2013. It was suspended during the pandemic, but yes, it will eventually be reinstated. It is legislatively required and would take congressional action before 2022 to be halted.

When will rehab therapy modifiers take effect?

In any case, there’s no reason to panic. Even though rehab therapists must start using the PTA/OTA modifiers in 2020, the associated reimbursement reduction won’t take effect until 2022. So, you still have the better part of two years to figure out how to minimize the impact of these cuts as much as physically possible. Here’s how to get started.

When do you have to include the correct assistant payment modifier?

Starting in 2020, whenever an assistant provides an outpatient service “in whole or in part” to a Medicare patient, therapists must include the correct assistant payment modifier on each applicable claim service line.

Can a therapist split a billable service into two claims?

In the 2020 final rule, CMS specified that therapists could split up units of a billable service onto two different claim lines, and affix the assistant modifier only to the units it applies to.

Who is Melissa Hughes?

Melissa Hughes is a senior content writer for WebPT. As a trained award-winning journalist and a forever learner, she uses her passion for education and really bad puns to inform her writing—and ultimately to help rehab therapists achieve greatness in practice.

Do therapists need to be glued to their hips?

They are perfectly capable of interacting with patients one-on-one; they don’t need to be glued to a therapist’s hip at all times. This will, again, boost the clinic’s overall productivity and ability to take on more patients—especially non-Medicare patients.

image

The Situation

Image
For those of you who aren’t in the loop, here’s what’s going on: back in 2018 when Congress repealed the therapy cap, CMS floated the idea of decreasing therapy assistant rates to help maintain a balanced budget. CMS announced its intentions to move ahead with these cuts in the 2019 final rule, declaring that it intended to r…
See more on evidenceinmotion.com

Therapists and Therapy Organizations Are Rallying to Fight These Cuts.

  • As I mentioned above, many therapists and therapy organizations are unhappy about these payment reductions, and they’re speaking out and making calls for advocacy. The APTA, for example, voiced its disapproval and even created letter templates for providers to send to CMS. The AOTA also denounced the cuts and publicly proclaimed its commitment to advocate agains…
See more on evidenceinmotion.com

The Reality

  • I understand why the rehab therapy industry is up in arms about these reductions, really, I do. As a former clinic director, I empathize with the clinics that will have to rethink their budgets, schedules, staffing practices, and productivity requirements in order to counterbalance the impact to their cash flow. But, while there’s no doubt in my mind that these cuts will not be beneficial to …
See more on evidenceinmotion.com

We Should Focus Our Advocacy Efforts on Something Truly worthwhile.

  • Instead of wasting our time and energy fighting what I believe is an almost inevitable reduction, we should focus on wider-reaching (and frankly, more troubling) proposed cuts, like the potential 8% industry-wide reduction that CMS proposed this year. This proposal, which would increase values of certain E/M codes at the expense of non-E/M services (like those typically rendered by …
See more on evidenceinmotion.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