CMS Pub. 100-02, ch. 15, § 230.2

A. General

Occupational therapy services are those services provided within the scope of practice of

occupational therapists and necessary for the diagnosis and treatment of impairments,

functional disabilities or changes in physical function and health status. (See Pub. 100-

03, the Medicare National Coverage Determinations Manual, for specific conditions or

services.)

Occupational therapy is medically prescribed treatment concerned with improving or

restoring functions which have been impaired by illness or injury or, where function has

been permanently lost or reduced by illness or injury, to improve the individual’s ability

to perform those tasks required for independent functioning. Such therapy may involve:

• The evaluation, and reevaluation as required, of a patient’s level of function by

administering diagnostic and prognostic tests;

• The selection and teaching of task-oriented therapeutic activities designed to

restore physical function; e.g., use of woodworking activities on an inclined table

to restore shoulder, elbow, and wrist range of motion lost as a result of burns;

• The planning, implementing, and supervising of individualized therapeutic

activity programs as part of an overall “active treatment” program for a patient

with a diagnosed psychiatric illness; e.g., the use of sewing activities which

require following a pattern to reduce confusion and restore reality orientation in a

schizophrenic patient;

• The planning and implementing of therapeutic tasks and activities to restore

sensory-integrative function; e.g., providing motor and tactile activities to

increase sensory input and improve response for a stroke patient with functional

loss resulting in a distorted body image;

• The teaching of compensatory technique to improve the level of independence in

the activities of daily living or adapt to an evolving deterioration in health and

function, for example:

o Teaching a patient who has lost the use of an arm how to pare potatoes

and chop vegetables with one hand;

o Teaching an upper extremity amputee how to functionally utilize a

prosthesis;

o Teaching a stroke patient new techniques to enable the patient to perform

feeding, dressing, and other activities as independently as possible; or

o Teaching a patient with a hip fracture/hip replacement techniques of

standing tolerance and balance to enable the patient to perform such

functional activities as dressing and homemaking tasks.

• The designing, fabricating, and fitting of orthotics and self-help devices; e.g.,

making a hand splint for a patient with rheumatoid arthritis to maintain the

hand in a functional position or constructing a device which would enable an

individual to hold a utensil and feed independently; or

• Vocational and prevocational assessment and training, subject to the

limitations specified in item B below.

Only a qualified occupational therapist has the knowledge, training, and experience

required to evaluate and, as necessary, reevaluate a patient’s level of function, determine

whether an occupational therapy program could reasonably be expected to improve,

restore, or compensate for lost function, recommend to the physician/NPP a plan of

treatment, where appropriate.

B. Qualified Occupational Therapist Defined

Reference: 42CFR484.4

The new personnel qualifications for occupational therapists (OT) were discussed in the

2008 Physician Fee Schedule. See the Federal Register of November 27, 2007, for the

full text. See also the correction notice for this rule, published in the Federal Register on

January 15, 2008.

The regulation provides that a qualified OT is an individual who is licensed, if licensure

applies, or otherwise regulated, if applicable, as an OT by the state in which practicing,

and graduated from an accredited education program for OTs, and is eligible to take or

has passed the examination for OTs administered by the National Board for Certification

in Occupational Therapy, Inc. (NBCOT). The phrase, “by the state in which practicing”

includes any authorization to practice provided by the same state in which the service is

provided, including temporary licensure, regardless of the location of the entity billing

the services. The education program for U.S. trained OTs is accredited by the

Accreditation Council for Occupational Therapy Education (ACOTE). The requirements

above apply to all OTs effective January 1, 2010, if they have not met any of the

following requirements prior to January 1, 2010.

The OTs may also qualify if on or before December 31, 2009:

• they are licensed or otherwise regulated as an OT in the state in which practicing

(regardless of the qualifications they met to obtain that licensure or regulation);

or

• when licensure or other regulation does not apply, OTs have graduated from an

OT education program accredited by ACOTE and are eligible to take, or have

successfully completed the NBCOT examination for OTs.

Also, those OTs who met the Medicare requirements for OTs that were in 42CFR484.4

prior to January 1, 2008, qualify to provide OT services for Medicare beneficiaries if:

• on or before January 1, 2008, they graduated an OT program approved jointly by

the American Medical Association and the AOTA, or

• they are eligible for the National Registration Examination of AOTA or the

National Board for Certification in OT.

Also, they qualify who on or before December 31, 1977, had 2 years of appropriate

experience as an occupational therapist, and had achieved a satisfactory grade on a

proficiency examination conducted, approved, or sponsored by the U.S. Public Health

Service.

Those educated outside the U.S. may meet the same qualifications for domestic trained

OTs. For example, they qualify if they were licensed or otherwise regulated by the state

in which practicing on or before December 31, 2009. Or they are qualified if they:

• graduated from an OT education program accredited as substantially equivalent to

a U.S. OT education program by ACOTE, the World Federation of Occupational

Therapists, or a credentialing body approved by AOTA; and

• passed the NBCOT examination for OT; and

• Effective January 1, 2010, are licensed or otherwise regulated, if applicable as an

OT by the state in which practicing.

For outpatient OT services that are provided incident to the services of physicians/NPPs,

the requirement for OT licensure does not apply; all other personnel qualifications do

apply. The qualified personnel providing OT services incident to the services of a

physician/NPP must be trained in an accredited OT curriculum. For example, a person

who, on or before December 31, 2009, graduated from an OT curriculum accredited by

ACOTE and is eligible to take or has successfully completed the entry-level certification

examination for OTs developed and administered by NBCOT, could provide Medicare

outpatient OT services incident to the services of a physician/NPP if the physician

assumes responsibility for the services according to the incident to policies. On or after

January 1, 2010, although licensure does not apply, both education and examination

requirements that are effective January 1, 2010, apply to qualified personnel who provide

OT services incident to the services of a physician/NPP.

C. Services of Occupational Therapy Support Personnel

Reference: 42CFR 484.4

The new personnel qualifications for occupational therapy assistants were discussed in

the 2008 Physician Fee Schedule. See the Federal Register of November 27, 2007, for

the full text. See also the correction notice for this rule, published in the Federal Register

on January 15, 2008.

The regulation provides that an occupational therapy assistant is a person who is licensed,

unless licensure does not apply, or otherwise regulated, if applicable, as an OTA by the

state in which practicing, and graduated from an OTA education program accredited by

ACOTE and is eligible to take or has successfully completed the NBCOT examination

for OTAs. The phrase, “by the state in which practicing” includes any authorization to

practice provided by the same state in which the service is provided, including temporary

licensure, regardless of the location of the entity billing the services.

If the requirements above are not met, an OTA may qualify if, on or before December 31,

2009, the OTA is licensed or otherwise regulated as an OTA, if applicable, by the state in

which practicing, or meets any qualifications defined by the state in which practicing.

Or, where licensure or other state regulation does not apply, OTAs may qualify if they

have, on or before December 31, 2009:

• completed certification requirements to practice as an OTA established by a

credentialing organization approved by AOTA; and

• after January 1, 2010, they have also completed an education program accredited

by ACOTE and passed the NBCOT examination for OTAs.

OTAs who qualified under the policies in effect prior to January 1, 2008, continue to

qualify to provide OT directed and supervised OTA services to Medicare beneficiaries.

Therefore, OTAs qualify who after December 31, 1977, and on or before December 31,

2007:

• completed certification requirements to practice as an OTA established by a

credentialing organization approved by AOTA; or

• completed the requirements to practice as an OTA applicable in the state in which

practicing.

Those OTAs who were educated outside the U.S. may meet the same requirements as

domestically trained OTAs. Or, if educated outside the U.S. on or after January 1, 2008,

they must have graduated from an OTA program accredited as substantially equivalent to

OTA entry level education in the U.S. by ACOTE, its successor organization, or the

World Federation of Occupational Therapists or a credentialing body approved by

AOTA. In addition, they must have passed an exam for OTAs administered by NBCOT.

Services. The services of OTAs used when providing covered therapy benefits are

included as part of the covered service. These services are billed by the supervising

occupational therapist. OTAs may not provide evaluative or assessment services, make

clinical judgments or decisions; develop, manage, or furnish skilled maintenance program

services; or take responsibility for the service. They act at the direction and under the

supervision of the treating occupational therapist and in accordance with state laws.

An occupational therapist must supervise OTAs. The level and frequency of supervision

differs by setting (and by state or local law). General supervision is required for OTAs in

all settings except private practice (which requires direct supervision) unless state

practice requirements are more stringent, in which case state or local requirements must

be followed. See specific settings for details. For example, in clinics, rehabilitation

agencies, and public health agencies, 42CFR485.713 indicates that when an OTA

provides services, either on or off the organization’s premises, those services are

supervised by a qualified occupational therapist who makes an onsite supervisory visit at

least once every 30 days or more frequently if required by state or local laws or

regulation.

The services of an OTA shall not be billed as services incident to a physician/NPP’s

service, because they do not meet the qualifications of a therapist.

The cost of supplies (e.g., looms, ceramic tiles, or leather) used in furnishing covered

therapy care is included in the payment for the HCPCS codes billed by the occupational

therapist and are, therefore, not separately billable. Separate coverage and billing

provisions apply to items that meet the definition of brace in §130 of this manual.

Services provided by aides, even if under the supervision of a therapist, are not therapy

services in the outpatient setting and are not covered by Medicare. Although an aide may

help the therapist by providing unskilled services, those services that are unskilled are not

covered by Medicare and shall be denied as not reasonable and necessary if they are

billed as therapy services.

D. Application of Medicare Guidelines to Occupational Therapy Services

Occupational therapy may be required for a patient with a specific diagnosed psychiatric

illness. If such services are required, they are covered assuming the coverage criteria are

met. However, where an individual’s motivational needs are not related to a specific

diagnosed psychiatric illness, the meeting of such needs does not usually require an

individualized therapeutic program. Such needs can be met through general activity

programs or the efforts of other professional personnel involved in the care of the patient.

Patient motivation is an appropriate and inherent function of all health disciplines, which

is interwoven with other functions performed by such personnel for the patient.

Accordingly, since the special skills of an occupational therapist are not required, an

occupational therapy program for individuals who do not have a specific diagnosed

psychiatric illness is not to be considered reasonable and necessary for the treatment of an

illness or injury. Services furnished under such a program are not covered.

Occupational therapy may include vocational and prevocational assessment and training.

When services provided by an occupational therapist are related solely to specific

employment opportunities, work skills, or work settings, they are not reasonable or

necessary for the diagnosis or treatment of an illness or injury and are not covered.

However, A/B MACs (A), (B), and (HHH) exercise care in applying this exclusion,

because the assessment of level of function and the teaching of compensatory techniques

to improve the level of function, especially in activities of daily living, are services which

occupational therapists provide for both vocational and nonvocational purposes. For

example, an assessment of sitting and standing tolerance might be nonvocational for a

mother of young children or a retired individual living alone, but could also be a

vocational test for a sales clerk. Training an amputee in the use of prosthesis for

telephoning is necessary for everyday activities as well as for employment purposes.

Major changes in life style may be mandatory for an individual with a substantial

disability. The techniques of adjustment cannot be considered exclusively vocational or

nonvocational.