🇺🇸United States

Denied or unpaid services from exceeding payer-specific therapy unit limits

1 verified sources

Definition

Some payers impose strict annual unit caps on specific PT, OT, and ST CPT codes (e.g., evaluation codes limited to 2 units per year), and services billed beyond those limits are denied with no payment. Provider bulletins explicitly warn that providers must request extensions of benefits once maximums are reached or risk nonpayment.

Key Findings

  • Financial Impact: $1,000–$10,000 per year per clinic, depending on how often sessions are delivered beyond allowed caps without approved extensions.
  • Frequency: Monthly
  • Root Cause: Lack of visibility into member-specific benefit limits and failure to track accumulated units per CPT code; payer guidance shows that extension of benefits is required for payment beyond the listed annual cap, but clinics often continue scheduling and billing without obtaining authorization.[2]

Why This Matters

This pain point represents a significant opportunity for B2B solutions targeting Physical, Occupational and Speech Therapists.

Affected Stakeholders

Front-desk and authorization coordinators, PT/OT/SLP clinicians, Billing and collections staff, Revenue cycle managers

Deep Analysis (Premium)

Financial Impact

$1,000–$10,000 per clinic per year in denied assistant-delivered workers’ comp visits beyond authorization limits, plus time lost to rescheduling and communicating with adjusters. • $1,000–$10,000 per clinic per year in denied OT claims beyond Medicaid unit limits, along with extra FTE time spent managing benefit checks, extensions of benefits, and denial remediation. • $1,000–$10,000 per clinic per year in denied OT services and unpaid units rendered beyond private plan caps, along with staff time spent performing manual benefit checks and managing rescheduled or cancelled visits.

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Current Workarounds

Authorization and cap information from Medicaid bulletins and portals is keyed into spreadsheets or written on paper logs. Front office or SLPs cross out units as they are used and send ad hoc reminders when a patient is nearing the limit. • Authorization PDFs are printed and key numbers (authorized units, expiration date) are retyped into an Excel tracker or noted on a paper chart cover; OTs or schedulers mark off visits with pen or by updating the spreadsheet after each session. • Authorization unit totals are recorded in spreadsheets or on paper and assistants ask supervisors or front office about remaining visits; updates are often passed along verbally or via informal messages.

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

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