Medicare · Coverage
Does Medicare cover physical therapy?
Last reviewed Invalid Date4 min readBy the Goodsurance editorial team Reviewed by the Goodsurance editorial team
Short answer first: yes, Medicare covers physical therapy when it is medically necessary. Part B pays for outpatient physical therapy, and Part A covers it during a covered hospital or skilled nursing stay. What you pay depends on where you get it.
What Medicare covers for physical therapy
The short version: Yes. Medicare covers physical therapy when it is medically necessary. Part B covers outpatient therapy, and Part A covers it as part of a covered inpatient or skilled nursing stay.
Physical therapy is a covered Medicare benefit, whether you are recovering from surgery, an injury, or a condition that affects how you move. The part of Medicare that pays, and the amount you owe, depends on where the therapy happens.
In short: if a doctor or therapist documents that the therapy is medically necessary, Medicare covers it.
What you pay for outpatient therapy
Most physical therapy happens on an outpatient basis, in a clinic or a therapist office, and that falls under Part B. After you meet the $283 annual Part B deductible in 2026, you generally pay 20 percent of the Medicare-approved amount for each visit, and Medicare pays the rest.
In short: for outpatient therapy, expect the standard Part B split, a $283 deductible for the year and then 20 percent coinsurance.
Is there a limit on therapy?
Medicare used to place a hard dollar cap on how much outpatient therapy it would cover in a year. That cap has been removed. Today there is no annual dollar limit on medically necessary physical therapy.
Above a certain yearly amount, your therapist may need to add information confirming that the therapy is still necessary, but that is a documentation step, not a cutoff. As long as the care is medically necessary, coverage continues.
Therapy in a hospital or nursing facility
If you receive therapy while admitted to a hospital, Part A covers it as part of that stay. Therapy in a skilled nursing facility is also covered under Part A after a qualifying hospital admission of at least 3 days. In a skilled nursing stay, Medicare covers the first 20 days in full, and from day 21 through day 100 you pay a daily coinsurance of $217 in 2026.
Because the right coverage depends on where your therapy takes place and what other coverage you have, please contact us to discuss your options.
The short version: Part B covers outpatient physical therapy at 20 percent coinsurance after the deductible, Part A covers it during a hospital or skilled nursing stay, and medically necessary therapy no longer has a dollar cap.
Common questions about IRMAA appeals
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Tap any question to expand. Each links to a fuller standalone answer.
Does Medicare pay for physical therapy?
Yes, when it is medically necessary. Part B covers outpatient physical therapy, and Part A covers therapy that is part of a covered hospital or skilled nursing stay.
How much does physical therapy cost with Medicare?
For outpatient therapy under Part B, you pay 20 percent of the Medicare-approved amount after meeting the $283 annual Part B deductible in 2026. To see how a specific plan would handle it, please contact us to discuss your options.
Is there a limit on how much physical therapy Medicare covers?
No. The old annual dollar cap on outpatient therapy was removed, so there is no dollar limit on medically necessary physical therapy. Your therapist may need to document that continued therapy is necessary above a certain amount.
References
- Medicare.govOutpatient physical therapy coverage and what you pay.
- CMS, Centers for Medicare & Medicaid ServicesTherapy services and the removal of the annual therapy cap. cms.gov