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Medicare Therapy Caps Delayed Until September 1

Legal Action Filed Last Week to Block Return of Therapy Caps

(ROCKVILLE, MD-June 30, 2003) The Centers for Medicare and Medicaid Services (CMS), the agency that administers Medicare, has agreed to delay implementation of the therapy caps for another two months. This agreement was reached this afternoon as a result of a request for a temporary restraining order filed on behalf of several beneficiary organizations in the U.S. District Court for the District of Columbia on Wednesday, June 25. The American Speech-Language-Hearing Association (ASHA) was instrumental in bringing about this litigation as part of its overall advocacy to oppose the caps.

"Every delay in the implementation of the Medicare cap is a win for us," stated Glenda Ochsner, PhD, CCC-SLP, president of ASHA. "Because the cap is postponed until September 1, more patients will receive the health care they need in 2003, and we will have more time to continue our efforts to get rid of the cap altogether."

The lawsuit, filed on behalf of several patient groups, argued that CMS is not capable of implementing the $1500 cap while complying with their obligations to provide adequate notice to beneficiaries, and that CMS cannot implement the caps without violating other Medicare policies.

CMS has agreed to notify beneficiaries about the September implementation via the Medicare Summary Notices, and to have ongoing discussions to reconcile the administration of the therapy caps with skilled nursing facility consolidated billing requirements. The Medicare therapy caps were scheduled to go into effect on July 1.

ASHA is the national professional, scientific, and credentialing association for more than 110,000 audiologists, speech-language pathologists, and speech, language, and hearing scientists. Audiologists specialize in preventing and assessing hearing dis orders as well as providing audiologic treatment including hearing aids. Speech-language pathologists identify, assess, and treat speech and language problems including swallowing disorders. For more information, call Action Center at 1-800-638-8255.

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