Subject: Update from APTA about Medicare and "incident to" therapy services
As of Monday, July 25, Medicare will only pay for physical therapy services provided in physician offices “incident to” the physician’s services if the physical therapy services are provided by “qualified personnel” as defined in a June 24 transmittal (http://www.cms.hhs.gov/manuals/pm_trans/R36BP.pdf) to Medicare contractors. The immediate implementation of the standards follows the dismissal last week of a lawsuit filed by the National Athletic Trainers Association (NATA) challenging the personnel standards, as explained in a new MedLearn article (http://www.cms.hhs.gov/medlearn/matters/mmarticles/2005/MM3648.pdf) released by the Centers for Medicare and Medicaid Services.
In addition to the implementation of the personnel requirements for physical therapy services provided incident to a physician/NPP, Section 230.5 of the Medicare Benefit Policy Manual also clarifies the requirement that services provided by PTAs cannot be billed incident to the physician/NPP’s services. PTAs must be supervised by a physical therapist in all treatment settings, including in a physician/NPP office. The services of PTAs are covered under the benefit for physical therapy services and not under the benefit for services provided incident to a physician/NPP. In order to bill for the PTA’s services in a setting where the PT and PTA are employed by a physician/NPP, the PT would need his or her own Medicare provider number. Payment for physical therapy services billed using the PT provider number would then be reassigned to the physician/NPP. (refer to the highlighted text below)
230.5 - Physical Therapy, Occupational Therapy and Speech-Language Pathology Services Provided Incident to the Services of Physicians and (Rev. 36, Issued: 06-24-05, Effective: 06-06-05, Implementation: 06-06-05)
References: §1861(s)(2)(A) of the Act
42 CFR 410.10(b)
42 CFR 410.26
Pub. 100-02, ch. 15, § 60.
The Benefit. Therapy services have their own benefit under §1861 of the Social Security Act and shall be covered when provided according to the standards and conditions of the benefit described in Medicare manuals. The statute 1862(a)(20) requires that payment be made for a therapy service billed by a physician/NPP only if the service meets the standards and conditions--other than licensing--that would apply to a therapist. (For example, see coverage requirements in Pub. 100-08, chapter 13, §13.5.1(C), Pub. 100-04, chapter 5, and also the requirements of this manual, §220 and §230.
Incident to a Therapist. There is no coverage for services provided incident to the services of a therapist. Although PTAs and OTAs work under the supervision of a therapist and their services may be billed by the therapist, their services are covered under the benefit for therapy services and not by the benefit for services incident to a physician/NPP. The services furnished by PTAs and OTAs are not incident to the therapist’s service.
Qualifications of Auxiliary Personnel. Therapy services appropriately billed incident to a physician’s/NPP’s service shall be subject to the same requirements as therapy services that would be furnished by a physical therapist, occupational therapist or speech-language pathologist in any other outpatient setting with one exception. When therapy services are performed incident to a physician’s/NPP’s service, the qualified personnel who perform the service do not need to have a license to practice therapy, unless it is required by state law. The qualified personnel must meet all the other requirements except licensure. Qualifications for therapists are found in 42CFR484.4 and in section 230.1, 230.2, and 230.3 of this manual. In effect, these rules require that the person who furnishes the service to the patient must, at least, be a graduate of a program of training for one of the therapy services as described above. Regardless of any state licensing that allows other health professionals to provide therapy services, Medicare is authorized to pay only for services provided by those trained specifically in physical therapy, occupational therapy or speech-language pathology. That means that the services of athletic trainers, massage therapists, recreation therapists, kinesiotherapists, low vision specialists or any other profession may not be billed as therapy services.
The services of PTAs and OTAs also may not be billed incident to a physician’s/NPP’s service. However, if a PT and PTA (or an OT and OTA) are both employed in a physician’s office, the services of the PTA, when directly supervised by the PT or the services of the OTA, when directly supervised by the OT may be billed by the physician group as PT or OT services using the PIN/NPI of the enrolled PT (or OT). (See Section 230.4 for private practice rules on billing services performed in a physician’s office.) If the PT or OT is not enrolled, Medicare shall not pay for the services of a PTA or OTA billed incident to the physician’s service, because they do not meet the qualification standards in 42CFR484.4.
Therapy services provided and billed incident to the services of a physician/NPP also must meet all incident-to requirements in this manual in chapter 15, §60. Where the policies have different requirements, the more stringent requirement shall be met.
For example, when therapy services are billed as incident to a physician/NPP services, the requirement for direct supervision by the physician/NPP and other incident to requirements must be met, even though the service is provided by a licensed therapist who may perform the services unsupervised in other settings.
The mandatory assignment provision does not apply to therapy services furnished by a physician/NPP or "incident to" a physician's/NPP’s service. However, when these services are not furnished on an assignment-related basis; the limiting charge applies.
For emphasis, following are some of the standards that apply to therapy services billed incident-to the services of a physician/NPP in the physician’s/NPP’s office or the beneficiary’s residence.
A. Therapy services provided to the beneficiary must be covered and payable outpatient rehabilitation services as described, for example, in this section as well as Pub. 100-08, chapter 13, §13.5.1.
B. Therapy services must be provided by, or under the direct supervision of a physician (a doctor of medicine or osteopathy) or NPP who is legally authorized to practice therapy services by the state in which he or she performs such function or action. Direct supervision requirements are the same as in 42CFR410.32(b)(3). The supervisor must be present in the office suite and immediately available to furnish assistance and direction throughout the performance of the procedure. It does not mean that the physician/NPP must be present in the same room in the office where the service is performed.
C. The services must be of a level of complexity that require that they be performed by a therapist or under the direct supervision of the therapist, physician/NPP who is licensed to perform them. Services that do not require the performance or supervision of the therapist, physician/NPP, are not considered reasonable or necessary therapy services even if they are performed or supervised by a physician/NPP or other qualified professional.
D. Services must be furnished under a plan of treatment as in §220.1.2 of this chapter. The services provided must relate directly to the physician/NPP service to which it is incident.