Yes. Medicare Part B covers outpatient physical therapy when it is reasonable and medically necessary. Therapy can help restore movement after illness, injury, or surgery, but coverage is not limited to improvement. It can also help maintain function or slow decline.

What Is Required?

A doctor, nurse practitioner, clinical nurse specialist, or physician assistant must certify that you need therapy. A qualified physical therapist develops and documents the treatment plan.

Medicare may cover therapy in settings such as:

  • A therapist's private practice
  • A hospital outpatient department
  • A rehabilitation agency
  • A skilled nursing facility as outpatient care
  • Your home through an eligible outpatient therapy provider; the separate home health benefit has additional requirements

An eligible therapist in private practice can provide outpatient Part B therapy in your home. You do not automatically have to meet the homebound requirement for the separate home health benefit. Ask the office which benefit it will bill. CMS describes the private-practice home setting.

The therapist’s office handles certification. In some situations, a signed order or referral and sending the treatment plan on time can meet the initial signature requirement. The office must still document the plan and arrange later certifications when required. See CMS’s certification explanation.

What Does It Cost?

After the Part B deductible, you generally pay 20% of the Medicare-approved amount when the provider accepts Medicare’s approved amount as full payment, called accepting assignment.

There is no annual dollar limit on medically necessary outpatient therapy. Medicare may require additional documentation or review after spending reaches certain thresholds, but coverage can continue when the care remains medically necessary.

Medicare's physical therapy coverage page contains current requirements.

Medicare Advantage Rules

Medicare Advantage must cover medically necessary therapy covered by Original Medicare but may require an in-network therapist, a referral, or approval before treatment, called prior authorization. Your plan may also charge a copayment. Ask how many visits are initially authorized and how additional visits are approved.

For example, someone with a condition that is getting worse may need skilled therapy to keep moving safely from a bed to a chair, even when recovery is not expected.

Medicare policy sources last checked: October 8, 2026.