Medicare Part B covers physical therapy if a doctor prescribes it. But where your parent receives the therapy can determine whether she must pay something out of pocket. If she gets therapy at a doctor's or therapist’s office, Part B pays only 80 percent of approved charges -- your parent is responsible for the other 20 percent. But if she gets therapy at a hospital outpatient department, Medicare pays 100 percent of approved charges. But there's a catch: Make sure the hospital accepts "assignment" of Medicare's approved amount as the full amount they can charge. Otherwise, the hospital's overall charge might far outweigh the 20 percent your parent saved by going there.
