Congress votes to restore full Medicare pay for therapy services
H.R. 8386 — RECOVER Act of 2026 · Filed by Deborah Ross (D-NC) · 2 cosponsors · Introduced Apr 20, 2026 · Referred to committee
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What it does
This bill eliminates a 50% payment reduction that Medicare currently applies to certain multiple therapy services (physical therapy, occupational therapy, speech-language pathology) furnished by physicians and outpatient therapy providers. Starting January 1, 2027, instead of cutting payments by 50%, Medicare will pay these services at full rate (0% reduction), restoring full reimbursement for therapists and therapy providers.
Why we flagged it
The bill's operative mechanism is a straightforward elimination of a payment reduction, increasing Medicare reimbursement rates for therapy services. While framed as benefiting patients (the RECOVER acronym emphasizes rehabilitation access), the direct financial flow runs to therapy providers and suppliers.
What the text implies
- The bill does not specify how Medicare will fund the increased therapy service payments; no offsets or revenue sources are identified, suggesting the cost will be absorbed by the Medicare trust fund, potentially accelerating its depletion timeline.
- Elimination of the 50% reduction may increase utilization of therapy services, which could raise total Medicare spending beyond the direct per-service cost increase if volume effects are substantial.
The full analysis lists 3 implications of this text.
Who stands to gain
Physical therapy providers; Occupational therapy providers; Speech-language pathology providers