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The Temporary Extension Act of 2010 (Pub.L. 111-144, signed March 2, 2010) extends the  Medicare therapy cap exceptions process through March 31, 2010, retroactive to January 1, 2010. For a broader discussion of the Therapy Cap exceptions process, see our Alert at: http://www.medicareadvocacy.org/InfoByTopic/PartB/PartB_09_06.11.TherapyCapExceptions.htm

Therapy caps are determined on a calendar year basis, so all patients began a new cap on January 1, 2010.  For physical therapy and speech language pathology services combined, the limit on incurred expenses is $1,860.  For occupational therapy services, the limit is $1,860. Deductible and coinsurance amounts applied to therapy services count toward the amount accrued before a cap is reached.   Therapy providers that have been holding claims for services for which they believe patients will qualify for exceptions may submit those claims to Medicare immediately.

This law also extends through March 31, 2010 the zero percent update to the Medicare Physician Fee Schedule that was in effect for claims with dates of service January 1, 2010, through February 28, 2010.  Consequently, effective immediately, claims with dates of service March 1 and later that were being held by Medicare contractors will be released for processing and payment.  The effect of this extension is to postpone a significant cut to physicians' payments.

Among other provisions, the law also extends enhanced Unemployment Benefits through April 5, 2010, extends the COBRA provisions of the American Recovery and Reinvestment Act through March 31, 2010 and prohibits the Secretary of Health and Human Services from publishing 2010 federal income poverty guidelines until after March 31, 2010, leaving the 2009 guidelines in effect for that period of time.