Today's post comes from Tom Ambury, PT and compliance officer at PT Compliance Group. Thanks, Tom!
“Tom, how can you make a statement that the Medicare 8-minute rule is simple yet diabolically complicated?” I can make that statement because even though this rule has been in effect for years—and thus, people should have the hang of it—mistakes still happen. And when I talk to therapists about it, a lot of confusion still exists.
The 8-minute rule is how we determine what to bill to Medicare. To correctly calculate the charge, you must divide charges into two categories: time based (or “constant attendance”) modalities and procedures as well as supervised modalities and procedures. Constant attendance modalities and procedures include therapeutic exercise, manual therapy, neuromuscular reeducation, therapeutic activities, gait training, ultrasound, iontophoresis, and electrical stimulation attended. Supervised procedures and modalities would include physical therapy evaluation, physical therapy reevaluation, electrical stimulation unattended, and whirlpool.
What the 8-minute rule says—and how it got its name—is if you are performing only one constant attendance modality or procedure, you have to perform that modality or procedure for at least eight (8) minutes in order to bill that charge.
For example, I see a patient for the initial visit, and I perform my initial evaluation for 35 minutes with seven (7) minutes of therapeutic exercise. My charges are one unit of physical therapy evaluation. I cannot bill for therapeutic exercise because I performed that procedure for seven (7) minutes. So, by rule, I would need to perform therapeutic exercise for eight (8) minutes in order to bill it. Most therapists understand this, and your documentation system should prevent this type of error.
Where the diabolically complicated part comes in is when the therapist performs multiple constant attendance procedures or modalities and then must correctly calculate the charge. Complications arise because there’s a cumulative and distribution part of the rule.
When calculating the correct charges for multiple procedures and modalities, you must add the total constant attendance modalities and procedures together to get the “Direct Timed Minutes.” This number determines how many constant attendance units you can charge. At this point, you would determine how many supervised units to charge and determine the “Total Treatment Time.” To add to the diabolically complicatedness, there is also a rule to determine the correct distribution of charges. Let’s go through some examples: