Physical Therapy Billing · CY2026 update

CMS relaxed the signature. It did not relax the plan of care.

Here is the short answer. The CY2026 Physician Fee Schedule eases how a physician certifies your plan of care, so you stop chasing wet signatures. What still gates payment is the plan itself, the 90 day recert clock, the KX attestation above threshold, and the CQ assistant modifier. Confuse the two and you over document one area while a claim denies on another.

What got easier
Certification signature path
What still denies claims
POC, recert, KX, CQ modifier
The decision panel

Relaxed on the left. Still gating payment on the right.

Sort every certification task into one of these two columns before you rewrite a single workflow. The relief is real, but it is narrow.

CMS eased this for 2026
  • 1
    Signed order or referral can serve as certificationA dated physician or NPP order or referral in the record, with evidence the plan of care was transmitted to that provider, satisfies certification. You do not have to route the POC back for a separate signature.CY2026 PFS Final Rule · Benefit Policy Manual Ch.15 §220.1.3
  • 2
    Less signature chasing on the initial POCThe verbal order followed by documented transmittal, then a physician signature within the established window, remains valid. The 2026 change reduces the certification friction, not the documentation.CY2026 PFS Final Rule
  • 3
    Fewer denied claims waiting on a stray signatureWhen the referral already carries the physician intent, a missing POC counter signature is no longer the single point of failure it used to be.CY2026 PFS Final Rule
! Unchanged, still gates payment
  • A
    A plan of care must still exist before treatmentEstablished at or before the first visit, with diagnoses, long term goals, and the type, amount, frequency, and duration of therapy. The eased signature does not remove the plan.Benefit Policy Manual Ch.15 §220.1.2
  • B
    Recertify at least every 90 daysOr sooner when the plan is significantly modified. The 90 day clock did not move in 2026.Benefit Policy Manual Ch.15 §220.1.3
  • C
    KX modifier and medical necessity above thresholdOnce accrued therapy passes the annual KX threshold, every line needs the KX attestation plus the record to back it.Bipartisan Budget Act of 2018 · Soc. Sec. Act §1833(g)
  • D
    CQ modifier when a PTA delivers the careTen percent or more of a service by a PTA still triggers CQ and the payment reduction. No 2026 relief here.Soc. Sec. Act §1834(v) · BBA 2018 §53107
Interactive calculator

Where does this patient sit on the therapy threshold?

Drag the accrued PT and SLP dollars for the year. The panel shows when the KX modifier becomes mandatory and when a claim enters targeted medical review territory.

KX threshold and medical review calculator

Illustrative · uses published 2025 threshold
$0 accrued PT + SLP
Below threshold
$0 $2,410 KX threshold $3,000 med review $4,000
Below the KX threshold. No KX attestation required yet. Keep documenting skilled, medically necessary care so you are ready when the patient crosses over.

The $2,410 combined PT and SLP figure shown is the CMS published CY2025 KX threshold. CMS updates the amount each year by the Medicare Economic Index, and the CY2026 figure applies to dates of service on or after January 1, 2026. The $3,000 targeted medical review threshold is fixed through CY2027 by the Bipartisan Budget Act of 2018.

Assistant modifier

The CQ reduction is 15 percent, and it is still here in 2026.

Services furnished in whole or in part by a physical therapist assistant are paid at 85 percent of the fee schedule amount. The de minimis standard is 10 percent. This did not soften alongside the certification rules.

Payment per unit
100%
PT delivered
85%
CQ modifier applied

The striped band is the 15 percent you forfeit on every CQ line. On a busy PTA driven caseload that is real annual revenue, so the modifier decision is a margin decision, not a coding footnote.

10%
The de minimis line. When a PTA independently furnishes more than 10 percent of a service, CQ applies to that service.
85%
Medicare allowed rate on CQ lines. Fixed by statute, unchanged for 2026.
2
Documentation points that decide the modifier. Minutes by provider type, and who furnished each service.
Watch the split. The 2026 certification relief tempts clinics to relax the whole therapy chart. The minute by minute PTA split is exactly the field auditors still pull.
The clock that did not move

The 90 day certification cycle, start to recert

Easier signatures do not stop the calendar. Map every active patient against this and you will catch the recert that is about to lapse.

1
Day 0

Plan of care established

Diagnoses, long term goals, type, amount, frequency, and duration are documented at or before the first treatment. This still comes first in 2026.

2
By day 30

Certification obtained

Physician or NPP certifies the plan. In 2026, a signed order or referral plus documented transmittal can carry this, so a separate POC signature is no longer the bottleneck.

3
Every 10 visits

Progress report

A progress report at minimum every 10th treatment day, written by the therapist. Unchanged, and still a common denial trigger.

4
By day 90

Recertification

Recertify at least every 90 days, or sooner if the plan is significantly modified. Miss it and the care after day 90 is at risk regardless of how clean the signature path was.

What you still must document

The six things a relaxed 2026 rule does not excuse

01

The plan of care itself

Established before treatment with diagnoses, long term goals, and type, amount, frequency, duration.

02

Certification and transmittal evidence

The signed order or referral, plus proof the POC reached the certifying provider.

03

Recert by day 90

Fresh certification at least every 90 days, or on a significant plan change.

04

Progress reports

Therapist written, at minimum every 10th treatment day.

05

KX attestation above threshold

KX on every line past the annual amount, with a record that supports continued medical necessity.

06

PTA minutes and CQ

Who furnished each service and the minute split, so the CQ decision holds up on review.

Cited 2026 guidance

Stop over documenting one area while a claim denies on another.

An 18 clinician outpatient PT group came to us doing exactly that, tightening signatures while recerts quietly lapsed. ASP-RCM rebuilt the certification, recert, KX, and CQ checkpoints into one worklist so nothing crosses day 90 unseen. That is our physical therapy billing service, run by people who read the rule so your front desk does not have to.

Map your 2026 PT plan of care workflow

ASP-RCM Solutions · Physical therapy revenue cycle and credentialing. This page summarizes federal guidance for operational planning and is not legal or coding advice. Confirm the current year KX threshold and payer specific rules against the CMS CY2026 Physician Fee Schedule Final Rule and your Medicare Administrative Contractor before you change a workflow.