Well it is coming close to the end of the year. Most people are ramping up for the holidays and preparing for time off and time with family. Unfortunately this is also true for our House of Representatives.
Currently there are scheduled cuts to the physician fee schedule yet again that will be effective at the beginning of the year. Fortunately there are members of the House that understand the true impact of further cuts to reimbursement of therapy services. Unfortunately there is little to no time left to fix this legislation before the cuts happen.
As costs and inflation rise, reimbursement drops
As therapy providers in all aspects of care; hospitals, nursing homes, or outpatient clinics. We all are subject to the physician fee schedule and it’s continued cuts to reimbursement.
As per the National Association of Rehabilitation Providers and Agencies, there has been a steady decline in reimbursement. As per their data from 2011 until 2024 there has been up to 45% reduction in reimbursement for therapy services. This is all done during unprecedented increased costs to perform our jobs.
Thanks to the COVID pandemic there are significant increased costs associated with rendering our services. There is increased need and use of PPE, decreased staffing from clinicians leaving Healthcare, increased cost of living requiring the need for increased salaries to keep good therapists, increased cost of providing health insurance, and the list continues on.
Ultimately the hardest hit are the elderly that live in more rural areas
This problem is very apparent in more rural regions of our country. As providers cannot make a living by serving Medicare beneficiaries, ultimately there are no services available to them. As outpatient clinics close or refuse medicare, or there are less therapists available in hospitals to provide care before discharge, or less available therapists in a Nursing home providing care. Ultimately the ones being hurt are our elderly that rely on these services.
It is well documented how therapy is very cost effective to keep our seniors active and more healthy. When more mobile and active there are less issues with chronic conditions as well as decreased risks of falling. And yet by saving money overall, we continue to get even less reimbursed.
This is even more pronounced with medicare advantage plans
Medicare advantage plans can further complicate the equation. They do not necessarily need to follow Medicare guidelines. They are independent insurance companies that set up managed care networks and make their own rules.
Please look at your loved ones and choose to be a voice for them
We all have a voice and need to use it. Please contact your Representative and tell them to stop the cuts. Part two of the voice is to ask for them to finally fix the system and establish a proper reimbursement system that factors in cost of living and inflation. It is up to you to make sure we are there when you need us to care for your loved ones. We cannot do it alone.
