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The Therapy Cap Exception Process Extended Under the "Temporary Extension Act of 2010" PDF Print E-mail
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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