Harmony Healthcare Blog

Medicare Part B Therapy Cap Update

Posted by Kris Mastrangelo, OTR/L, LNHA, MBA on Thu, Feb 08, 2018

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Edited by Kris Mastrangelo


Compliance • Audits/Analysis • Reimbursement/Regulatory • Education/Efficiency

Young physiotherapist exercising with elder disabled person.jpeg

Update: On Friday, February 9, 2018 President Trump signed into law the permanent removal of the Medicare Part B Caps for outpatient therapy services.  More to follow later in the day.

The Medicare Part B Therapy Cap situation is changing daily.  The House Bill proposed to eliminate therapy caps all together.  As seen by the below diagram, there is a process that occurs for the approval and implementation of regulations.  This progression is further complicated by the multiple agenda items addressed within one bill.  Often, issues that concern the Post-Acute sector are negotiated with other agenda items from other sectors. 

The House Bill required modifications for the Senate Level.  

Refinements include: 

  • All facets of the therapy policy from the original House Bill are still included in the legislation i.e.,
    • Elimination of Therapy Caps.
    • Reduction of 15% in Medicare Part B reimbursement for Physical Therapy Assistants and Occupational Therapy Assistants effective 2022.
  • Proposed Medicare cuts effective October 1, 2018.  Estimated Market Basket increase of 2.4% versus 2.7%.  The bill freezes the increase at 2.4%.
  • Today at noon, the Senate starts the process of expediting the bill to a floor vote.
  • The general impression is the bill will pass with support from Republicans and Democrats.
  • The anticipated Proposed Rule in May of 2018 will have more details. 

Stay tuned and we will keep you abreast of the status of the Senate decision.  We are grateful for the AHCA Team, the leadership of Mark Parkinson and their advocacy of the nursing facility,  assisted living, developmentally disabled and subacute care providers in the U.S.


Harmony Healthcare International (HHI) is available to assist with any questions or concerns that you may have. You can contact us by clicking here.  Looking to train your staff?  Join us in person at one of our our upcoming Competency/Certification Courses.  Click here to see the dates and locations. 

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Tags: Medicare Part B

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