Home Health & Hospice Week

Congress Puts A Cap In The Therapy Caps

Home health agencies that offer therapy under the Part B benefit got some good news when President Bush signed Medicare legislation into law this month.

After strident outcry, providers can kiss the much-maligned therapy caps goodbye - at least for the next two years. The controversial Medicare Prescription Drug, Modernization and Improvement Act of 2003 includes a moratorium on the $1,590 cap on therapy furnished under the Part B benefit. The moratorium took effect Dec. 8 and is good through calendar year 2005.

The Centers for Medicare & Medicaid Services has issued transmittal CR 3005 codifying the cap moratorium in the Medicare Claims Processing Manual.

The legislation "is a major step forward for Medicare beneficiaries who need physical therapist services," said American Physical Therapy Association President Ben Massey in a release.

HHAs can furnish therapy services under Part B to non-homebound patients in their homes. They must charge a copayment and bill their Part B Medicare contractor rather than their regional home health intermediary. The caps wouldn't apply to therapy furnished under the home health prospective payment system.

Editor's Note: The transmittal is online at www.cms.hhs.gov/Manuals/pm_trans/R42CP.pdf.