Capital Report

Momentum builds to end long-standing cuts to occupational therapy

Medicare reimbursement does not stretch as far as it once did. A 15-year-old Medicare payment policy called the multiple procedure payment reduction (MPPR) is a significant reason why. Compounding the problem, broader changes to the Medicare Physician Fee Schedule (MPFS) implemented in 2021 have led to an additional 9% reduction in therapy payments. Together, these cuts have pushed occupational therapy payment rates to a point that the American Occupational Therapy Association (AOTA) considers to be unsustainable.

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