On December 26, 2013, President Obama signed into law the Pathway for SGR Reform Act of 2013. This new law has several “fixes” important to providers of outpatient therapy services related to the 20.1% scheduled reduction in Medicare payment in 2014, the therapy cap application to hospital outpatient departments in 2014, the therapy cap exception process (i.e. use of KX modifier) in 2014, and the manual medical review process for when the beneficiary has reached a dollar aggregate threshold amount of $3,700. This new law takes effect on January 1, 2014.
Here is how the new law impacts providers of outpatient therapy services:
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