Medicare Benefit Policy Manual (Pub. 100-02), Ch. 2 § 30.2.3
Services Supervised and Evaluated by a Physician
30.2.3 - Services Supervised and Evaluated by a Physician
(Rev. 59, Issued: 11-09-06, Effective: 01-01-05, Implementation: 12-04-06)
The types of services which meet the above requirements would include not only
psychotherapy, drug therapy, and electroconvulsive therapy, but also such therapeutic
activities as occupational therapy, recreational therapy, and milieu therapy, provided the
therapeutic activities are expected to result in improvement in the patient's condition. If
the only activities prescribed for the patient are primarily diversional in nature, (i.e., to
provide some social or recreational outlet for the patient), it would not be regarded as
treatment to improve the patient's condition. In many large hospitals these adjunctive
services are present and part of the life experience of every patient. In a case where
milieu therapy, (or one of the other therapeutic activities is involved), it is particularly
important that this therapy be a planned program for the particular patient and not one
where life in the hospital is designated as milieu therapy.
In addition, the administration of antidepressant or tranquilizing drugs that are expected
to significantly alleviate a patient's psychotic or neurotic symptoms would be termed
active treatment (assuming that the other elements of the definitions are met). However,
the administration of a drug or drugs does not necessarily constitute active treatment.
Physician participation in the services is an essential ingredient of active treatment. The
services of qualified individuals other than physicians, e.g., social workers, occupational
therapists, group therapists, attendants, etc., must be prescribed and directed by a
physician to meet the specific psychiatric needs of the individual. In short, the physician
must serve as a source of information and guidance for all members of the therapeutic
team who work directly with the patient in various roles. It is the responsibility of the
physician to periodically evaluate the therapeutic program and determine the extent to
which treatment goals are being realized and whether changes in direction or emphasis
are needed. Such evaluation should be made on the basis of periodic consultations and
conferences with therapists, reviews of the patient's medical record, and regularly
scheduled patient interviews, at least once per week.
When the physician periodically evaluates the therapeutic program to determine the
extent to which treatment goals are being realized and whether changes in direction or
emphasis are needed (based on consultations and conferences with therapists, review of
the patient's progress as recorded on the medical record and the physician's periodic
conversations with the patient), active treatment would be indicated. A finding that a
patient is not receiving active treatment will not in itself preclude payment for physicians'
services under Medicare Part B. As long as the professional services rendered by the
physician are reasonable and necessary for the care of the patient, such services would be
reimbursable under the medical insurance program.