Medicare and Speech-Language Pathologists in Private Practice
Billing and Coding
There are a number of regulations, guidelines, and policies that must be understood before billing for Medicare services. This page will provide important billing and coding information relevant to speech-language pathology services and will guide you to additional resources.
Medicare billing is coordinated through your local Medicare contractor, however, the standard form used for submitting claims is called the
CMS 1500 Health Insurance Claim Form [PDF]. For step-by-step instructions on completing and processing the CMS 1500 form, go to
Chapter 26 of the Medicare Claims Processing Manual [PDF].
There are two ways claims may be submitted:
Electronically - Electronic claims are paid faster and can help cut down on the administrative burden for both you and Medicare. To bill electronically, your practice must meet all required
Health Insurance Portability & Accountability Act (HIPAA) standards.
By Paper - Medicare providers must meet certain
requirements to submit paper claims.
CMS webpage on Electronic Billing & EDI Transactions
Speech-language pathology services under Medicare Part B have
reimbursement rates established by the Medicare Physician Fee Schedule regardless
of provider setting. Payment is determined by the fee associated with a
specific procedure code (see Coding
for Reimbursement) in those settings. The fee schedule is updated annually.
Payments for outpatient therapy services are subject to a targeted
medical review threshold of $3,000. There is one targeted review threshold
of $3,000 for occupational therapy and a second threshold of $3,000 for
speech-language pathology and physical therapy combined. There is also a
trigger of $2,040, at which point the KX modifier must be included on the claim
to demonstrate continued medical need for services.
Coding for Reimbursement
three major coding systems used when submitting claims for reimbursement by Medicare. Below are links to speech-language pathology related codes compiled from each of the major coding systems:
Medicare Coding Rules
Medicare has very specific rules regarding coverage of certain codes and services. ASHA has compiled
Medicare coding rules related to speech-language pathology services, however, you should also be aware of local coverage determinations (LCDs) from Medicare contractors that are specific to your locality. To find LCDs, go to the
Medicare Coverage Database and search for "Local Coverage Documents" by keyword and locality.
Medicare Benefit Policy Manual
The Medicare Benefit Policy Manual provides general coverage rules and regulations for providers of Medicare services. Specifically,
Chapter 15, Section 220-230.6 [PDF] of the manual addresses the rules and regulations related to therapy services (speech-language pathology, physical therapy, and occupational therapy) provided in an outpatient setting.
Specific Sections Applicable to SLPs
- 220.1 - Physician Certification
- 220.2 - Reasonable and Necessary Services
- 220.3 - Documentation Requirements for Therapy
- 230.3 - SLP Scope of Coverage