Medicare Annual Cap on Rehabilitation Services


Resolution Adopted

by the CCAR

MEDICARE

ANNUAL CAP ON REHABILITATION SERVICES

Resolution adopted at the 111th Convention of

the

Central Conference of American Rabbis

March,

2000

Background

The Jewish

textual tradition unquestionably demands that we show special concern

for the welfare of the elderly. The Holiness Code of Leviticus

declares that we must “rise before the aged and show deference to the

old,” (Lev. 19) and the Psalmist pleads “cast me not away in my old

age.” It goes without saying that the torah equates zeqenim,

elders, with those worthy of our attention and respect.

Effective January 1, 1999, Medicare began severely limiting

coverage of non-hospital based (Medicare Part B) rehabilitation

services. The Balanced Budget Act (BBA) of 1997 as interpreted by the

Health Care Financing Committee (HCFA) placed an annual per

beneficiary limit of $1500 on all Part B outpatient physical therapy

and speech language pathology services; and a separate annual per

beneficiary limit on all Part B outpatient occupational therapy

services.

Due to what are believed to be technical

reasons, HCFA had not been able this past year to implement the cap as

intended by the BBA ’97 and mandated instead that each provider keep

track of the cap and not provide services to any beneficiary beyond

$1500.

Providers of care to the elderly report that

these artificial limits have proven to be drastically insufficient to

care for our frail elderly population who can exhaust $1500 of

physical therapy in two weeks during an acute episode.

The Balanced Budget Refinement Act of 1999, H.R. 3246 (BBRA

’99) did not repeal the $1500 therapy cap but did place a moratorium

on the cap. The moratorium is for two years starting with services

provided on or after January 1, 2000 and running through December 31,

20001. Unless there is intervening legislation indicating otherwise,

the $1500 cap will automatically be reinstated on January 1, 2002.

The BBRA ’99 does provide for the development of

a substitute for the therapy caps. It requires the Secretary to

submit a report to Congress no later than January 1, 2001. The report

must recommend a mechanism for assuring appropriate utilization of

outpatient therapy and suggest an alternative payment policy for these

services based on classification of individuals by diagnostic

category, functional status and prior use of services.

The moratorium is a step

in the right direction. During the past year, capitation of

rehabilitation services penalized the frail, elderly and vulnerable

among us. This is unconscionable in a nation as wealthy as the United

States.

THEREFORE BE IT RESOLVED, that the Central

Conference of American Rabbis commends Congress for placing a

moratorium on the ill-conceived policy of limiting Part B annual

coverage of physical and speech therapy to $1500 and of occupational

therapy to $1500, and

BE IT FURTHER RESOLVED, that the

CCAR requests that the cap for outpatient therapy services never be

reinstated and that the Secretary’s report to Congress recommend a

policy that does not penalize people for their frailty and

vulnerability.