MedPAC would slash Part B therapy caps

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The independent Congressional agency on Medicare issues is pushing to lower therapy caps.
The independent Congressional agency on Medicare issues is pushing to lower therapy caps.

The Medicare Payment Advisory Commission devoted a chapter of its June 2013 Congressional report to outpatient therapy recommendations, sparking concern.

The current $1,900 yearly caps on occupational therapy and physical and speech language therapy combined should be reduced to $1,270, MedPAC advised.

The changes would cut significantly into the operating margins of skilled nursing facilities, which accounted for 37% of Medicare therapy-related reimbursements in 2011, according to the report.

Other ideas in the report, such as a 50% multiple procedure payment reduction, had already been released and adopted. The new MPPR rate, lowering per diem reimbursement for therapies for a single patient, has been in place since April 1.