End of Year 2022 Legislative Updates and its Impact on OT

The 117th Congress recently passed the $1.7 trillion Omnibus Budget Reconciliation Act of 2023 AKA “the omnibus bill.” But what does that mean for occupational therapy?

If you need a quick refresher on how Medicare law is made, check out this podcast or article before we dive in.

Policies Discussed in this Article:

Ep. 20: 2022 Advocacy Year-End Wins and Losses

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Allied Health Workforce Diversity Program

A huge win for OT! This program, like the name implies, supports efforts for a more diverse and representative healthcare profession by providing grant funding to accredited higher education healthcare programs to support their efforts to increase opportunities for diverse students. This means that accredited OT schools have an opportunity for additional funding to attract, recruit, and retain students from underrepresented and disadvantaged backgrounds. Check out the resources in this article to learn more.

Extension of Medicare Telehealth Waivers

This successful advocacy effort for OT extends Medicare Telehealth waivers through the end of 2024. This means that both occupational therapists and occupational therapy assistants can be reimbursed for telehealth services for Medicare beneficiaries for 2023 and 2024, regardless of the status of the COVID-19 Public Health Emergency. Before the Public Health Emergency, occupational therapy practitioners were unable to be reimbursed by Medicare for services provided via telehealth. This changed with the declaration of the COVID-19 Public Health Emergency, and now telehealth services provided by occupational therapy practitioners will be reimbursed for Medicare recipients through the end of 2024.

While a permanent solution is still needed, this buys practitioners and companies time to continue to provide these important services. Stay tuned for future legislation to be introduced to propose a permanent fix.

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Medicare to Cover Compression Garments for Lymphedema

A win for occupational therapists who treat patients with Lymphedema! The Omnibus bill finally included the Lymphedema Treatment Act. This provision ensures that Medicare beneficiaries are covered for the supplies needed to manage their edema as a result of Lymphedema.

Medicare currently covers occupational therapy services for lymphedema interventions, but it does not currently cover many supplies that are essential for treatment and maintenance of the disease. These supplies include garments and other frequently prescribed items. This law does not immediately go into effect as it still needs to undergo a rule-making process. If I were to guess, we won’t see any official change in policy until 2024. Keep an eye on any proposed rules this summer. To get updates on this policy, be sure to sign up here to receive updates from Amplify OT.

Expansion of Intensive Outpatient Mental Health Services Covered by Medicare

More great news for the profession. This provision created a new Medicare mental health benefit for intensive mental health outpatient services be provided at federally qualified health centers (FQHCs) and rural health clinics. With this program, occupational therapists have an opportunity to get paid by Medicare for community mental health services through these agencies. While FQHC’s are paid using a bundled-payment model, the intensive outpatient services will be paid separately. More regulations from CMS will come on this, and we will watch closely for updates.

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Resources and Additional Information