The Temporary Extension Act of 2010, enacted on March 2, 2010, extends
the therapy cap exceptions process through March 31, 2010, retroactive
to January 1, 2010. Outpatient therapy service providers may now submit
claims with the KX modifier, when an exception is appropriate, for
services furnished on or after January 1, 2010 through March 31, 2010.

 

The therapy caps are determined on a calendar year basis, so all
patients began a new cap on January 1, 2010.  For physical therapy and
speech language pathology services combined, the limit on incurred
expenses is $1,860.  For occupational therapy services, the limit is
$1,860. Deductible and coinsurance amounts applied to therapy services
count toward the amount accrued before a cap is reached.

 

Some therapy providers have been holding claims for services furnished
on or after January 1, 2010, for patients who exceeded the cap but
qualified for an exception under previous law.  These providers may
submit those claims to Medicare effective immediately.   Therapy
providers, who submitted claims which were denied, for services
furnished on or after January 1, 2010, for patients who exceeded the cap
but whose services now qualify for an exception, should contact their
Medicare contractor to request that their claim be adjusted to add the
KX modifier and ensure the appropriate exception applies. 

 

A small number of therapy providers continued to submit claims with the
KX modifier for services furnished on or after January 1, 2010, even
though the exceptions process had expired on December 31, 2009.
Medicare contractors held these claims and will now begin to release
them for processing.  These providers do not need to take any action on
the claims that were held.

 

Providers who charged beneficiaries for services that exceeded caps,
which are now payable under the exception process, should refund the
beneficiary's cost, less the appropriate amount of deductible and
co-insurance.  Affected claims should be either submitted or, if already
submitted, the provider should contact their contractor for an
adjustment.

 

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