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CMS announces 2006 Medicare physician fee schedule

Rehab Private Practice Alert, November 9, 2005

Physical therapists and other healthcare providers are facing a 4.4% cut in 2006 Medicare payments under regulations for the Part B physician fee schedule, reports PT Bulletin Online.

The announcement underscores the urgency for Congress to take action this year to protect Medicare beneficiaries. The 2006 Medicare physician fee schedule final rule announced by the Centers for Medicare & Medicaid Services (CMS) also includes the implementation of a $1,740 therapy cap starting January 1, 2006, and includes "physical therapy" services provided by chiropractors under the four-state demonstration project as services billed by physicians subject to the physical therapy cap.

CMS did recognize the value of wound care services provided by physical therapists, accepting the relative value units (RVU) for negative pressure wound therapy (CPT codes 97605 and 97606). After review by a refinement panel, the final rule includes the Relative Value Update Committee Health Care Professional Advisory Committee recommendation of 0.55 work RVUs for 97605 and 0.60 work RVUs for 97606.

Separately this week, CMS announced a 2.8% increase in 2006 Medicare payment rates for home health agencies. According to CMS, the increase could bring an estimated extra $370 million in payments to home health agencies next year.

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