Why can't physical therapists opt out of Medicare?

Asked by: Prof. Casimer Runte  |  Last update: April 29, 2025
Score: 4.6/5 (39 votes)

The Medicare Benefit Policy Manual: Chapter 15 Section 40.4 states Physical therapists in independent practice and occupational therapists in independent practice cannot opt out because they are not within the opt out law's definition of either a “physician” or “practitioner”.

Can a physical therapist opt out of Medicare?

Unlike many other types of practitioners, physical therapists cannot “opt out” of Medicare. In fact, the closest thing PTs have to “opting out” is simply not having any type of relationship with Medicare.

Do physical therapists accept Medicare?

Yes. Medicare Parts A and B cover physical therapy considered medically necessary to treat an injury or illness, including managing a chronic condition like Parkinson's disease or aiding recovery from a fall, stroke or surgery.

Are doctors opting out of Medicare at an alarming rate?

In 2024, 8.1% of psychiatrists have opted out of Medicare, followed by 4.5% of physicians specializing in plastic and reconstructive surgery and 3.2% of physicians specializing in neurology (Figure 2).

What happens if you opt out of Medicare?

Once you opt out of Medicare, you cannot see any patients under Medicare during each two-year period you have opted out for. If you have been seeing Medicare patients, once you have opted out, they will only be able to continue seeing you under a private contract.

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36 related questions found

Why can't chiropractors opt out of Medicare?

The opt out law does not define “physician” to include chiropractors; therefore, they may not opt out of Medicare and provide services under private contract.

What is the biggest problem with Medicare?

The biggest challenges reported by those in Traditional Medicare and Medicare Advantage: Out-of-pocket medical costs and health services they needed but weren't covered. “The gaps in Medicare coverage can really be notable,” says Jacobson.

Why do psychiatrists opt out of Medicare?

Psychiatrists with characteristics that may signal higher quality to patients (for example, greater experience or more prestigious training) may be more likely to opt out because Medicare patients would be more willing to pay higher fees for those psychiatrists.

What is the percentage of doctors that accept Medicare?

According to recent research, around 93% of primary care doctors do accept Medicare. This is reassuring news for Medicare beneficiaries seeking primary care services.

How many PT sessions will Medicare pay for?

There's no limit on how much Medicare pays for your medically necessary outpatient physical therapy services in one calendar year.

Why won't Medicare pay for physical therapy?

Authorization by Licensed Physician

Medicare will not pay for physical therapy services unless the claim and documentation prove that a licensed physician has authorized the plan of care.

Do all therapists accept Medicare?

To see a list of mental health providers near you who accept Medicare, you can visit Medicare's Physician Compare page or call 1-800-MEDICARE. Medicare does cover therapy, but coverage is restricted to specific types of therapy providers. Covered provider types include: Psychiatrists.

Can a physical therapist bill Medicare?

If physical or occupational therapists provide 12 minutes of therapeutic exercise, they can charge Medicare for one billable unit. If the one on one treatment of therapeutic exercise extends to 23 minutes, this one unit now turns into two billable physical therapy billing units.

When did Medicare stop limiting physical therapy?

Medicare Part B covers outpatient therapy, including physical therapy (PT), speech-language pathology (SLP), and occupational therapy (OT). Previously, there were limits, also known as the therapy cap, how much outpatient therapy Original Medicare covered annually. However, in 2018, the therapy cap was removed.

What happens if I refuse physical therapy?

You'll have a longer recovery time.

These treatments strengthen your muscles, increase blood flow to the injured area and promote proper healing. If you refuse to participate in physical therapy, it may take you longer to heal from your injury.

Why would a practice not want to accept Medicare?

There are several reasons why some doctors choose not to accept Medicare patients. One of the most common reasons is that they do not feel that the reimbursements provided by Medicare cover the costs associated with providing care for these patients.

What are the disadvantages of opting out of Medicare?

Note that if you opt out, not only will Medicare and Medicare Advantage plans not pay you, they also will not pay any entity to whom you might reassign your right to receive payment for services, unless the services are for emergency care or urgent care.

Do doctors lose money on Medicare patients?

Summarizing, we do find corroborative evidence (admittedly based on physician self-reports) that both Medicare and Medicaid pay significantly less (e.g., 30-50 percent) than the physician's usual fee for office and inpatient visits as well as for surgical and diagnostic procedures.

What is the big mistake people make with Medicare?

Choosing the right Medicare plan can be confusing, and it's difficult to decipher all the language written into these plans and options. Medicare mistakes to avoid include missing your initial enrollment period, signing up for the wrong coverage, not paying your premiums, and assuming your spouse is covered.

Why would you not want Medicare?

Original Medicare provides good basic care, but it doesn't include drug coverage and there are premiums, deductibles, and copays or coinsurance you'll need to pay. Medigap plans can cover some of those costs.

Can I drop my medicare advantage plan and go back to original Medicare?

Medicare Advantage Open Enrollment Period: Between January 1 and March 31 of each year, if you already have a Medicare Advantage Plan (with or without drug coverage) you can: Switch to another Medicare Advantage Plan (with or without drug coverage). Drop your Medicare Advantage Plan and return to Original Medicare.

Can I self pay if I have Medicare?

The Social Security Act states that participating providers must bill Medicare for covered services. The only time a participating-provider can accept "self-payments" is for a non-covered service. For Non-participating providers, the patient can pay and be charged up to 115% of the Medicare Fee Schedule.

Why do medical doctors not like chiropractors?

Some doctors may view chiropractic care as unconventional or lacking scientific evidence, leading to a reluctance to refer patients to chiropractors or collaborate with them on patient care.

Can a chiropractor refer a Medicare patient to physical therapy?

Chiropractors can refer patients for PT services, except for Medicare patients. Medicare recipients must obtain a doctor's order or script from their attending physician. Medicare does not recognize Physical Therapy referrals from Chiropractic physicians and will reject payment for services rendered.