MedicaidCoverageHigh impact
REVISED: Physical and Occupational Therapy Coverage for Adults in a Clinic Setting
Arkansas Medicaid·AR · Physical Therapy, Occupational Therapy·Claims & Billing
Effective date
Jul 1, 2026
We identified it
Sep 29, 2026
Summary
Arkansas Medicaid expanded coverage for adult Physical and Occupational Therapy services in clinic settings effective July 1, 2026, allowing up to 2 evaluations per therapy type and 12 combined therapy visits per state fiscal year. The policy was revised July 31, 2026 to clarify billing requirements, coding guidelines, and the extension of benefits process through AFMC using process type 126.
Action Required
REQUIREMENTS:
- By July 31, 2026 (or upon implementation): Billing team must update the billing system to track and enforce the following limits for adult patients (21+ years): maximum 2 PT evaluations per state fiscal year, maximum 2 OT evaluations per state fiscal year, and maximum 12 combined OT/PT visits per state fiscal year. Implement limit monitoring via the Service Limit section (code 5109) once the audit becomes available in the system (notification via RA message will be sent).
- Immediately: Update all CMS-1500 paper claim submissions to include Box 19 entry 'F' (indicating individuals ages 18+ receiving therapy services) and Box 17 entry with Specialist MCD ID who ordered services. If PCP is involved, submit a separate CMS-1500 per ON-025-24 instructions.
- Before claims processing begins: Ensure billing software can identify when a member's therapy visit limit (12 visits) is exhausted and can generate appropriate denial messages for RA submission.
- For extension of benefits requests: Establish process to submit requests within 90 calendar days of benefit-exhausted denial date, including Medical Assistance Remittance (RA), Status Report, clinical notes, and supporting documentation to AFMC using process type 126. Do not send the denied claim itself.
- Train billing staff that services rendered by both OT and PT on the same day count as 2 separate visits against the 12-visit limit.
- Consequence of non-compliance: Claims will be denied if limits are exceeded without proper prior authorization; extension requests submitted after 90 days will not be considered; technical denials will result from failure to provide requested documentation within specified timeframes.