American Speech-Language-Hearing Association

Manual Medical Review Process for Therapy Claims

Medicare Part B Services

A manual medical review process for Medicare Part B therapy services that exceed a $3,700 threshold was mandated by the "Middle Class Tax Relief and Job Creation Act of 2012" and requires reauthorization annually. It was extended until March 31, 2015, by the "Protecting Access to Medicare Act of 2014."

The mandate requires any therapy claims for combined speech-language pathology and physical therapy that reach $3,700 to be reviewed for medical necessity. The $3,700 threshold includes the total allowed charges for services furnished by independent practitioners and all institutional services under Medicare Part B (i.e., hospital outpatient departments, skilled nursing facilities, critical access hospitals).

The manual medical review applies to all Part B outpatient therapy settings, including:

  • Private practice—therapy and/or physician offices
  • Part B skilled nursing facility care
  • Home Health agencies (Type of Bill 34X)
  • Outpatient Rehabilitation Facilities
  • Comprehensive Outpatient Rehabilitation Facilities
  • Hospital Outpatient Departments, excluding all Critical Access Hospitals, but including:
    • Type of Bill 12X or 13 X
    • Revenue codes 042X, 043X, or 044X
    • Services with the modifiers –GN, -GO, and –GP

Review Process

For services rendered on or after February 28, 2014, Medicare Recovery Audit Contractors (RACs) will conduct the medical reviews through post-payment review. Postpayment review occurs when the services have been rendered, claims are submitted, the claim is adjudicated for payment, and the claim is paid. Following are the steps taken in the review process.

  • The MAC will flag the claims that meet $3,700 threshold and then send an Additional Document Request (ADR) to the provider requesting that the documentation be sent to the Recovery Auditor. The process for submitting the documentation is to be determined by the MAC and the Recovery Auditor.
  • The Recovery Auditor will conduct postpayment review and will notify the MAC of the payment decision. CMS did not indicate a timeframe for notification to the provider.
  • Postpayment may result in no change to the initial payment to the provider or may result in a "revised determination" that would require the provider to pay back monies for services determined to be "not reasonable or necessary." The provider will be notified of any payment determination, and if necessary, be given the options of
    • paying back funds by check,
    • recoupment from future payments,
    • applying for an extended payment plan, or
    • appealing the decision.

ASHA Resources

CMS Resources

CMS Contacts

ASHA Contacts

  • Questions: reimbursement@asha.org
  • Submit a sample denial: MMR@asha.org. ASHA has created a dedicated manual medical review e-mail address (MMR@asha.org) where members are encouraged to send de-identified documents and cases, including denial letters, for presentation to CMS. Before e-mailing, please make sure to remove all patient identification data and include communication from the MAC or RAC.

Share This Page

Print This Page