Quick Answer
Yes, Medicare covers physical therapy when a physician deems it medically necessary. Part A covers inpatient PT during a hospital stay or skilled nursing facility. Part B covers outpatient and at-home physical therapy. There is no longer an annual cap on sessions, though a $2,480 threshold triggers a medical necessity review. You pay the Part B deductible plus 20% coinsurance for outpatient PT.
Coverage Comparison by Plan Type
| Plan Type | Coverage | Notes |
|---|---|---|
| Inpatient physical therapy | Covered | Part A covers PT during hospital stays and skilled nursing facility care |
| Outpatient physical therapy | Covered | Part B covers outpatient PT; you pay deductible + 20% coinsurance |
| At-home physical therapy | Covered | Part B covers PT at home when prescribed by a doctor |
| Aquatic physical therapy | Covered | Covered when your doctor states you would benefit from aquatic PT |
| Occupational therapy | Covered | Covered in the same way as physical therapy |
| CORF services | Covered | Comprehensive Outpatient Rehabilitation Facilities services covered |
| Medicare Advantage (Part C) | Covered | Must cover at least the same PT benefits as Original Medicare |
| Medicare Supplement (Medigap) | Covered | Covers the 20% Part B coinsurance for outpatient physical therapy |
Understanding Your Coverage Options
Original Medicare (Part A)
Covers physical therapy during inpatient hospital stays
Covers PT in a skilled nursing facility after a 3-day hospital stay
You pay the Part A deductible ($1,736 in 2025)
Includes PT as part of your overall inpatient care
Original Medicare (Part B)
Covers outpatient physical therapy when prescribed by a doctor
Covers at-home physical therapy services
No annual cap on the number of PT sessions
$2,480 threshold for PT + speech therapy combined triggers medical necessity review
You pay the Part B deductible ($283 in 2025) then 20% coinsurance
Medicare Advantage (Part C)
Must cover at least the same physical therapy benefits as Original Medicare
Some plans may offer additional therapy benefits or lower copayments
May require use of in-network physical therapists
May require prior authorization for extended therapy sessions
Medicare Supplement (Medigap)
Covers the 20% Part B coinsurance for outpatient physical therapy
Depending on plan, may cover the Part B deductible
No network restrictions - see any Medicare-accepting physical therapist
Provides consistent cost protection for ongoing therapy sessions
Physical Therapy Cost Estimates
| Item | Estimated Cost |
|---|---|
| Part B deductible (2025) | $283 annually |
| Outpatient PT session (your share) | 20% of Medicare-approved amount |
| Inpatient PT (Part A) | Included in hospital stay; $1,736 deductible |
| SNF physical therapy | Covered after 3-day hospital stay |
| With Medigap Plan G | Part B deductible only ($283/year) |
| Medical necessity review threshold | $2,480 (PT + speech therapy combined) |
✦ Important Exceptions & Limitations
Physical Therapy Must be Prescribed...
Physical therapy must be prescribed by a doctor and deemed medically necessary
A $2,480 Threshold for PT...
A $2,480 threshold for PT and speech therapy combined triggers a medical necessity review
After the Threshold, PT Must...
After the threshold, PT must be billed with unique codes to prove medical necessity
Medicare Does not Cover PT...
Medicare does not cover PT if you are not under a doctor's care
SNF Physical Therapy Requires A...
SNF physical therapy requires a qualifying 3-day inpatient hospital stay
Medicare Advantage Plans May Require...
Medicare Advantage plans may require prior authorization or in-network providers
✦ Frequently Asked Questions
David Haass
AuthorDavid Haass is a licensed Medicare expert and member of the Forbes Finance Council who has been helping beneficiaries navigate their Medicare options.
Ashlee Zareczny
ReviewerAshlee Zareczny is a licensed Medicare agent in all 50 states dedicated to educating those eligible for Medicare.