8% Cut to Therapy Services Planned for 2021

It’s official… well, almost. Last week, CMS issued its final 2020 Medicare Physician Fee Schedule and, if enacted as planned in 2021, it will be a massive blow for physical and occupational therapy. The rule will impose an 8% cut in reimbursement to all therapy services in January, 2021.

While APTA/AOTA both lobbied hard against this reduction and a letter was even sent to CMS by 55 members of the US House of Representatives expressing their concern about the “magnitude an 8 percent cut would have”, it has still passed. It is the biggest cut to reimbursement that rehab therapy has seen in a long time and it is going to impact providers in all settings as most insurers follow the Medicare fee schedule as the “gold standard”. While there is still hope and the details are not yet released, I can’t image that companies can (or will) absorb the entire impact of this 8% reduction and I expect we, as therapists, will feel the effects.

More news on this plus an update to the proposed cut to reimbursement of therapy services provided by assistants will follow. Until then, you can read more through both the CMS Fact Sheet and Press Release.

Anyone else frustrated?

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