Perspective               

Freeze on Medicare Physical Therapy Cap

A coalition of consumer organizations reached a partial settlement of a federal lawsuit earlier this week requiring the Bush Administration to delay until September 1st implementation of a $1,590 annual cap on Medicare payments for speech-language and physical therapy (combined) and a $1,590 annual cap for occupational therapy services.

The case, brought by the Medicare Rights Center, Easter Seals, and the American Parkinson Disease Association, charged that the Department of Health and Human Services had failed to advise people with Medicare that it was set to put the therapy cap into operation on July 1st. In addition to the 60 day delay in imposing the cap, the Department of Health and Human Services also agreed in the settlement to provide notice of the cap in writing to at least 90 percent of the 41 million Americans with Medicare during the month of July.

A Medicare prescription drug bill passed by the House of Representatives last week includes a full year delay in any imposition of a therapy cap. While consumer advocates have highlighted several flaws with the House drug bill, a delay in the therapy cap is one element that should remain in any prescription legislation that is passed.

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