Therapy cap

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Therapy cap

Therapy cap (/θɛrəpi kæp/) is a term used in the healthcare industry to refer to a limit on the amount of outpatient therapy services that Medicare will cover in a single benefit period.

Etymology

The term "therapy cap" is derived from the English words "therapy", referring to the treatment of disease or disorders, and "cap", meaning limit or restriction. It was first used in the context of healthcare policy in the United States in the late 20th century.

Definition

A therapy cap is a financial limit, or cap, on the amount of outpatient therapy services that Medicare will cover in a single benefit period. This includes physical therapy, occupational therapy, and speech-language pathology services. The cap is adjusted each year based on the Medical Economic Index (MEI).

Related Terms

  • Benefit period: A specified amount of time during which a patient is eligible for insurance coverage for certain healthcare services.
  • Outpatient therapy: Medical care or treatment that does not require an overnight stay in a hospital or medical facility.
  • Medicare: A national health insurance program in the United States, primarily for individuals aged 65 or over.
  • Physical therapy: A branch of rehabilitative health that uses specially designed exercises and equipment to help patients regain or improve their physical abilities.
  • Occupational therapy: A form of therapy for those recuperating from physical or mental illness that encourages rehabilitation through the performance of activities required in daily life.
  • Speech-language pathology: A field of expertise practiced by a clinician known as a speech-language pathologist, who specializes in the evaluation and treatment of communication disorders and swallowing disorders.

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