March Industry Note: Medicare 2026 Therapy Services Update

03/05/2026

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Medical Billing

CY 2026 Therapy Services Updates 

The Therapy Services webpage is being updated to: 

  • Reflect the KX modifier threshold amounts of $2,480 for CY 2026 in the “Implementation of the Bipartisan Budget Act of 2018” section on the landing page (see CR 14252). 
  • Update the CY 2026 list of codes that sometimes or always describe therapy services to add three new codes (98979, 98984, and 98985) for remote therapeutic monitoring (RTM) services that CMS designated as sometimes therapy in the CY 2026 Physician Fee Schedule final rule (see CR 14250). We are also updating Disposition 10 for services furnished virtually or remotely to: (a) consolidate and remove historical and legislative information that is redundant or no longer relevant; (b) reflect section 6209 of the Consolidated Appropriations Act, 2026 that extended the ability of PTs, OTs, and SLPs to furnish Telehealth Services, including the telephone assessment and management services (codes 98966 – 98968) through December 31, 2027; and (c) add the 3 new RTM codes (98979, 98984, 98985) along with 2 existing RTM codes (98976 and 98977) that had their descriptors revised and how these affect coding/billing by therapists. See the Annual Therapy Update link for the 2026 Therapy Code List and Dispositions. 
  • Update the multiple procedure payment reduction (MPPR) Rate File for CY 2026. Medicare applies a MPPR to the practice expense component of certain “always therapy” services. Since April 1, 2013, the MPPR rate is 50 percent for both practitioner/office and institutional settings. It applies to the second and subsequent therapy services provided to a patient on the same day. The service with the highest PE relative value unit (RVU) is paid at 100% and the remaining services are paid at 50%. The “MPPR Rate File” for CY 2026 is found in the Downloads section of this webpage that was last updated on 2/24/2026 to include code 97026.  

 

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