APTQI Applauds CMS for Finalizing Updates to Physical Therapy Reimbursement and Equipment Costs in 2027 MPFS Final Rule
Physical therapy leaders thank CMS for finalizing important Medicare updates, including elimination of the IPCI, modernization of equipment codes, and protecting access to Remote Therapeutic Monitoring
Washington, DC – The Alliance for Physical Therapy Quality and Innovation (APTQI) today applauded the Centers for Medicare & Medicaid Services (CMS) for finalizing several important policies that recognize the value of physical and occupational therapy in the Medicare Physician Fee Schedule (MPFS) Final Rule for Calendar Year (CY) 2027. Specifically, APTQI commends CMS for finalizing a modest 0.7% payment update to physical and occupational therapy. This update reflects technical increases that more than offset the 2.3% cut to the conversion factor included in the Final Rule.
By finalizing important Indirect Practice Cost Index (IPCI) policy updates, which APTQI and the broader physical therapy community have strongly supported, Medicare rates will more accurately reflect the costs of delivering physical and occupational therapy to aging Americans in community settings. In addition, CMS finalized increased pricing for aquatic therapy equipment, which has not been updated for more than 20 years.
APTQI also supports CMS’ decision to exclude and delay proposals that would have cut reimbursement for remote patient monitoring, restricted payments for remote patient monitoring to services furnished only by practice-employed clinical staff, and required an initiating in-person visit. Since proposed, the provider community has warned that such changes could seriously restrict patients’ access to remote patient monitoring and important telehealth services.
“We are grateful CMS implemented many of APTQI’s recommendations and listened to the voice of the physical and occupational therapy community when finalizing these important updates in the CY 2027 Final Rule,” said Nikesh Patel, PT, DPT, Executive Director of APTQI. “Ensuring an overall reimbursement update for physical therapists, protecting remote patient monitoring, and updating outdated equipment pricing are all important steps forward for practice stability and patient access.”
According to APTQI, stabilizing Medicare reimbursement will increase patients’ access to physical therapy services to protect their overall health, including strength, balance, and mobility. As an effective, lower cost alternative to invasive procedures and pharmacological treatments, physical therapy results in lower healthcare costs and strong patient outcomes.
“Greater provider stability will help strengthen Americans’ access to the physical therapy services they need to remain active, reduce pain, and maintain independence. APTQI thanks CMS for valuing the care our field provides to patients every day, which helps millions of Americans live longer, healthier, more independent lives,” concluded Patel.