Therapy Services: Get Ready for RAC Manual Reviews for Therapy Claims Over $3700

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Note:  The following article synopsis was NOT provided by AAPC. It was created by Find-A-Code/innoviHealth.

Article Overview

This article covers CMS’s shift in oversight for outpatient therapy claims above the annual threshold, including the move to Recovery Audit Contractors, differences between prepayment and post-payment review, and the states affected by the prepayment review demonstration. It is relevant to therapy providers, compliance staff, and billing teams that need to understand review timing, documentation flow, and the operational impact of the new process.

Why This Topic Matters

Therapy providers need to understand who will review higher-dollar claims, how documentation requests are routed, and what timing applies so they can manage compliance and cash flow expectations.

Article Sections

  1. Understand the Pros and Cons

    This section discusses the policy shift to Recovery Audit Contractor involvement and summarizes perceived operational advantages and concerns. It provides context on how the change affects outpatient therapy claim oversight.

  2. Determine Your State’s Review Status

    This section outlines how review type varies by state and explains the distinction between prepayment and post-payment review pathways. It identifies the states participating in the prepayment review demonstration.

  3. Watch Your RAC’s Timeframes

    This section addresses the timeframes associated with review activity and the general pace of determinations under the new process. It highlights the operational timing expectations for providers.

What You Will Learn

  • How CMS changed the review process for outpatient therapy claims above the threshold
  • The difference between prepayment and post-payment review pathways
  • Which states are included in the prepayment review demonstration
  • What provider workflows are affected by documentation requests and review timing

Who Should Read This

  • Therapy providers
  • Billing staff
  • Compliance professionals
  • Revenue cycle teams
  • Medicare billing administrators

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