
The Medicare 8-Minute Rule Explained: How to Bill Therapy Units without the Headache
Picture this. It is 6PM and you have just finished seeing your last patient, and you are looking at your notes.
β10 minutes of exercise, 7 minutes of manual therapy, a little bit of coaching at the end, how many units that is?β
If you have ever had that moment you’re not alone. Medicare billing for therapy can be a bit like a puzzle with pieces that are constantly morphing into new shapes. Fortunately, one rule, the Medicare 8-Minute Rule, helps to answer most of those questions. After you get it, it is really quite easy.
Let’s take a look at it. No legal jargon, no legal talk, only real examples.
So, What Is the 8-Minute Rule?
Care from therapists is counted in 15-minute increments. The 8-Minute Rule helps you determine how much you should charge for each minute you spend with your patient. The one thing to remember is:
To bill your first unit, you must have a minimum of 8 minutes of direct, one-on-one treatment.
Spend 7 minutes? No unit. Spend 8? You’re good. This is what the whole rule is about.
Medicare will not be playing games. It simply wants what you actually took the time to do billed, rather than less or more.
Who Has to Follow It?
If you bill Medicare Part B for outpatient therapy, this rule is for you. That includes:
- Physical Therapists (and PTAs). You make people better, stronger and back to life. Record each minute of hands-on work, as it all counts.
- Occupational Therapists (and OTAs). If you’re working on fine motor skills or assisting someone to get back to cooking and dressing, your one-on-one time is what you’re charged. Record what you did and how long it takes.
- Speech-Language Pathologists. Minutes of guided practice will count towards those minutes if you are coaching speech, language, or swallowing!
The idea is the same for all: monitor your time, document, and charge for it.
Timed vs. Untimed Codes
The thing that people get confused with is this: The 8-Minute Rule only applies to timed codes.
| Timed Codes | Untimed Codes | |
|---|---|---|
| How you bill | Per 15-minute unit | One unit per visit, no matter how long |
| 8-Minute Rule applies? | Yes | No |
| Examples | 97110, 97112, 97140, 97530 | Evaluations, re-evaluations, G0283 |
If you go to untimed services, it doesn’t count toward your timed minutes. It should still be written down but not in the math.
The Cheat Sheet: Minutes to Units
Add up all your timed minutes for the visit, then check the chart:
| Total Timed Minutes | Units You Can Bill |
|---|---|
| 8 β 22 | 1 |
| 23 β 37 | 2 |
| 38 β 52 | 3 |
| 53 β 67 | 4 |
| 68 β 82 | 5 |
| 83 β 97 | 6 |
| 98 β 112 | 7 |
| 113 β 127 | 8 |
Let’s Talk About CPT 97110
Next, meet 97110; you will see it all around in therapy billing.
CPT 97110 = Therapeutic Exercise: According to the official description, the therapeutic procedure is used to develop strength, endurance, range of motion and flexibility, one or more areas, 15 minutes each. If you are new to the code, it is the βlet’s get you stronger and moving betterβ code. Think:
- Using resistance bands, weights or body weight to strengthen muscles
- Exercises that involve movement and range of motion.
- Endurance training, like monitored cycling
- Rehab exercises after surgery or injury
There are some things to be aware of:
- It is a timed code and is subject to the 8-Minute Rule.
- Hands on is required. You must be actively teaching, guiding or manipulation of the exercises. If the patient is riding the bike and playing with their computer while you’re answering emails, that time doesn’t count.
- Use appropriate modifiers: GP (physical therapy), GO (occupational therapy) or GN (speech-language pathology). For assistance, use CQ (PTA) or CO (OTA). The KX modifier is used when the patient exceeds the annual therapy limit and there is still a medical need for the therapy.
Modifier rules and thresholds will change annually; be sure to verify current modifiers before billing.
Other common timed codes you’ll bump into
| Code | What It Is |
|---|---|
| 97110 | Therapeutic exercise |
| 97112 | Neuromuscular re-education |
| 97140 | Manual therapy |
| 97530 | Therapeutic activities |
Real-Life Examples
Example 1: Keep It Simple
After knee surgery, your patient performs 18 mints of strengthening and range of motion exercises. 18 falls in the 8β22 range, so you bill 1 unit of 97110 (with GP). Done.
Example 2: Mixing It Up
- 20 minutes therapeutic exercise (97110)
- 10 minutes manual therapy (97140)
Total Time: 30 minutes (2 units). But which codes get the units? There is 1 complete 15 minute unit with 5 minutes left over in 97110. 97140 has 10 minutes left over. The second unit is given to the one who has more remaining minutes, which is 97140.
Bill 1 unit of 97110 and 1 unit of 97140.
Example 3: The Sneaky One
- 7 minutes of 97110
- 7 minutes of 97112
- 7 minutes of 97140
They’re all under 8 minutes, so you can’t bill anything, right? Wrong! The rule considers all your minutes that are timed. That is 21 minutes, which means 1 billable unit.
Many practices fail to capture revenue here by adopting the rule on a per-code basis. Avoid being that practice!
6 Mistakes That Quietly Cost You Money
- Performing mathematics per code: Always add up total timed minutes first, then divide up the units.
- Counting the incorrect minutes: The setup, charting, and time spent by the patient alone (without an instructor) during the exercise period do not count.
- Mixing in untimed services: Hot packs, unattended e-stim and evaluations are not included.
- Thin documentation: The number of times therapeutic exercise was performed does not count toward an audit. Be specific.
- Forgetting modifiers: If one of the GP, GO, GN, CQ, CO, or KX is missing, then a claim could be denied.
- Assuming that all payers abide by Medicare’s rules: Many commercial insurers employ a “substantial portion” (or “midpoint”) rule. Review the policy of each payer.
What Good Documentation Looks Like
Consider your notes to be your life buffer. They should contain:
- Treatment minutes: duration of each treatment, or total treatment minutes per session
- The specifics of interventions, that is, which exercises, how many sets, what resistance (for 97110)
- Skilled service: what you provided, like instructing, correcting, or progressing
- Patient response: how they reacted and how they are progressing towards their objectives.
- Medical necessity : why needed, related to the plan of care
You would like your notes to come up with the answer before the auditor asks you..
Why Bother Getting This Right?
Accurate billing means:
- Fewer denials: claims are paid quicker.
- No audit hassle as overbilling invites auditors and repayment requests
- Full payment, as if you have under billed then you have done the work and you haven’t received the money for that.
- Avoid the hassle of a CMS audit or other government agency review
Quick Habits to Make It Easy
- Record the time during the session rather than at 6PM.
- Utilize EHR timers or templates with start/stop times.
- Ensure everyone is βon the same page.β Just one error by one person can establish a pattern of errors.
- Audit monthly. Review minutes with billed units for early detection of issues.
- Review payer policies whenever there is a new contract or renewing a contract.
Frequently Asked Questions
What is the “8 minute rule” in Medicare?
The method that the CMS uses to convert minutes of timed therapy into billable 15-minute periods. The first unit will be billed for a minimum of 8 minutes of direct treatment.
Does all insurance follow the 8-Minute Rule?
No. It’s a Medicare rule. Other payers may use different methods, so check their policies.
Is 97110 a timed code?
Yes. The units are 15 minutes of one-to-one, direct therapeutic exercise.
Can I bill 97110 with other codes in the same visit?
Yes. It is often charged with 97112, 97140 and 97530, as long as each service is unique, medically required and documented. Sum all the timed minutes to determine your total units.
Do evaluations count toward the 8-Minute Rule?
No. There are no timed evaluations and re-evaluations are billed per visit.
What if I only have 7 minutes?
Sorry, no rounding up. 8 total timed minutes are required to bill a first unit.
The Bottom Line
Rules can feel boring, and billing rules can feel downright scary. But the 8-Minute Rule doesn’t want to make your life difficult. It simply ensures that your efforts with patients result in the correct number of units. Keep in mind the three habits:
- Track your minutes.
- Add all services together.
- Document everything.
Do that, and you’ll make a good living, patients will be billed fairly, and you will get your evenings back!
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