On December 29, 2022, the Consolidated Appropriations Act of 2023 was signed into law. This omnibus legislation includes provisions that are applicable to health care providers. Following is a summary of key provisions of particular relevance to rehabilitation therapy services.
| TOPIC |
SECTION |
PROVISION |
Medicare
Physician Fee
Schedule
(MPFS) cuts |
Division FF, Title IV, Subtitle B, Section 4112 - Extension of support for physicians and other professionals in adjusting to Medicare payment changes. |
- The Act provides for a 2.5% increase to the CY 2023 MPFS conversion factor, resulting in a payment cut of 1.97% rather than the previously anticipated 4.47% decrease in payments for CY 2023
- The Act also provides for a 1.25% increase in CY 2024
|
Telehealth
Services Under
the Medicare
Benefit |
Division FF, Title IV, Subtitle B, Section 4113 - Advancing telehealth beyond COVID-19. |
- In the event that the COVID-19 Public Health Emergency (PHE) ends before 12/31/2024, telehealth-related PHE flexibilities will expire on 12/31/2024 rather than 151 days after the declared end of the COVID-19 Public Health Emergency, including the recognition of rehabilitation therapy practitioners as qualified providers of telehealth services under the Medicare Program.
- The Secretary of Health and Human Services will conduct a study of telehealth services provided under Medicare Part B, including medical record reviews of telehealth services provided between 01/01/2022 and 12/31/2024, issuing an interim report by 10/1/2024 and final report by 04/01/2026.
|
Home Health
Payment |
Division FF, Title IV, Subtitle D, Section 4137 - Extension of certain home health rural add-on payments |
- The Consolidated Appropriations Act of 2023 extends the current 1% rural add-on payment for an additional year through to 12/31/2023.
|
Medicare
Sequestration |
Division FF, Title IV, Subtitle F, Section 4163 - Medicare direct spending reductions |
- As part of the offsets for the cost of the Consolidated Appropriations Act of 2023, the 2% Medicare sequestration payment reduction that is currently in effect will continue into the first six months of FY 2032.
|
Pay-As-You-Go
(PAYGO) Act |
Division O, Title X, Section 1001 - Budgetary Effects |
- The provisions of the PAYGO Act require routine analysis of Medicare expenditures for the purpose of budgetary enforcement, with presidential issuance of a sequestration order to remedy over-expenditures. Other laws deferred a previous 4% PAYGO cut to Medicare until 01/01/2023. The Consolidated Appropriations Act of 2023 waives the 4% PAYGO cut for FY 2023 and FY 2024, delaying implementation of the PAYGO sequestration to FY 2025.
|
Related Link:
Congress.gov Link for Consolidated Appropriations Act of 2023: https://www.congress.gov/bill/117th-congress/house-bill/2617/text
If you have questions or need additional information, please contact the Powerback regulatory email
inquiry system at askregulatory@powerbackrehab.com.
