Senator Collins Supports Legislation to Reform Medicare Rehab Cap

Press Release

SENATOR COLLINS SUPPORTS LEGISLATION TO REFORM MEDICARE REHAB CAP

U.S. Senator Susan Collins is an original cosponsor of bipartisan legislation introduced in the Senate this week that would permanently repeal the $1,500 cap on Medicare outpatient therapy services. The Medicare Access to Rehabilitation Services Act would provide seniors with greater access to physical therapy, occupational therapy and speech-language pathology services. It is authored by Senators John Ensign (R-NV) and Blanche Lincoln (D-AR).

"I am concerned that Medicare beneficiaries recovering from a stroke, hip fracture, or other disease or condition requiring extensive therapy will not be able to receive all of the services they need under this current cap," said Senator Collins. "Moreover, Medicare patients would have an incentive to seek services in the hospital outpatients setting, which are not subject to the cap and are more expensive."

The Balanced Budget Act of 1997 imposed a per-beneficiary cap of $1,500 annually for each therapy - occupational, physical, and speech-language pathology - effective January 1, 1999. The cap did not apply to therapy services provided in hospital outpatient departments.

Congress has, on three separate occasions, implemented short-term fixes. Without Congressional action, the beneficiary cap on therapy services will be effective on January 1, 2010. The Medicare Access to Rehabilitation Services Act would permanently resolve

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