RECOVER Act of 2026
- Sponsor
- Rep. Ross, Deborah K. [D-NC-2]
- Committees
- Ways and Means Committee (primary)
- Last action
- Apr 20, 2026
Bottom line
The bill aims to increase Medicare reimbursement for providers offering multiple therapy services on the same day by eliminating a current payment reduction, potentially improving access to comprehensive rehabilitation care for beneficiaries.
What it actually does
This bill amends Title XVIII of the Social Security Act, which governs the Medicare program, to eliminate the 50% payment reduction currently applied to certain multiple therapy services. Specifically, for services furnished on or after January 1, 2027, the reduction will be set at 0%, meaning providers will receive full payment for each therapy service provided during the same session.
Proponents argue
Supporters argue that the existing 50% payment reduction for multiple therapy services creates a financial disincentive for providers to deliver comprehensive, coordinated care, potentially limiting access to necessary rehabilitation for Medicare beneficiaries. They contend that eliminating this cut will ensure fair compensation for therapists, encourage integrated treatment plans, and ultimately improve patient outcomes by removing a barrier to delivering multiple essential treatments in a single session.
Opponents contend
Opponents might argue that eliminating this payment reduction would significantly increase Medicare spending, exacerbating the program's long-term financial challenges. They may contend that the current reduction is a necessary cost-saving measure designed to prevent overutilization of services and ensure fiscal responsibility within the Medicare system, asserting that providers can still offer necessary care under existing reimbursement structures.
The bill text is very short and straightforward, allowing for quick comprehension by any interested reader.
Section 2(a), amending Section 1848(b)(7) of the Social Security Act (42 U.S.C. 1395w-4(b)(7))
Elimination of Payment Reduction for Multiple Therapy Services under Medicare Physician Fee Schedule
This provision modifies the Medicare physician fee schedule by changing the payment reduction for certain multiple therapy services. Currently, when multiple therapy services are provided to a beneficiary on the same day, a 50% reduction applies to the payment for subsequent services. This bill eliminates that reduction, setting it to 0% for services furnished on or after January 1, 2027, ensuring providers receive full payment for each service.
Supporters argue
Supporters argue that the current payment reduction unfairly penalizes providers for delivering necessary, coordinated care, leading to fragmented treatment plans and potentially poorer patient outcomes. Eliminating this reduction ensures that therapists are appropriately compensated for their time and expertise, fostering better patient outcomes and access to integrated rehabilitation.
Critics contend
Critics might argue that this change will lead to increased Medicare spending without a guaranteed improvement in patient outcomes, potentially encouraging unnecessary bundling of services. They may contend that the original reduction was implemented to control costs and ensure efficient use of Medicare funds.
Tradeoffs
This provision balances the goal of ensuring fair compensation for therapy providers and potentially improving patient access to comprehensive care against concerns about increased federal spending and the potential for overutilization of services.
Section 2(b), amending Section 1834(k)(7) of the Social Security Act (42 U.S.C. 1395m(k)(7))
Elimination of Payment Reduction for Multiple Outpatient Therapy and Comprehensive Outpatient Rehabilitation Services
This provision extends the elimination of the payment reduction to outpatient therapy services and comprehensive outpatient rehabilitation services under Medicare. Similar to the physician fee schedule amendment, it changes the 50% payment reduction for multiple therapy services provided on the same day to 0% for services furnished on or after January 1, 2027. This ensures a consistent reimbursement policy across different settings for therapy services.