Billable Units Formula:
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Definition: The 8-minute rule is Medicare's method for calculating billable units of timed service codes in therapy services.
Purpose: It determines how many units can be billed for time-based therapy services provided to Medicare beneficiaries.
The rule uses the formula:
Where:
Explanation: For every full 8 minutes of service, you can bill one unit. Partial units (less than 8 minutes) are not billable.
Details: Proper application ensures accurate billing compliance with Medicare regulations and prevents overbilling or underbilling.
Tips: Enter the total time spent on the service in minutes. The calculator will determine how many full 8-minute units can be billed.
Q1: What happens if I have 7 minutes of service?
A: You cannot bill any units for 7 minutes (must have at least 8 minutes for 1 unit).
Q2: How do I bill for 15 minutes of service?
A: 15 minutes equals 1 unit (15 ÷ 8 = 1.875, floor to 1).
Q3: What about multiple services in one day?
A: Time for all timed services is summed, then divided by 8 to determine total billable units for the day.
Q4: Are there exceptions to the 8-minute rule?
A: Yes, some services have different rules. Always check current Medicare guidelines.
Q5: Does this apply to all insurance?
A: No, this is specific to Medicare. Other insurers may have different rules.