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Modifier CQ and CO: PTA & OTA Payment Reductions

Last Updated: October 16, 2025

In an effort to cut costs, Medicare passed a law reducing payments for therapy services provided in whole, or in part, by Physical Therapist Assistants (PTAs) and Occupational Therapy Assistants (OTAs).

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When to Use CQ and CO

You must append the modifier if a PTA or OTA provides more than 10% of the service for any given CPT code.

  • CQ: Services provided by a PTA.
  • CO: Services provided by an OTA.

The 85% Payment Rule

When Medicare sees the CQ or CO modifier on a claim line, they automatically reduce the reimbursement for that specific CPT code to 85% of the standard physician fee schedule.

NCCI Edits and Modifier Stacking

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Not sure if these codes bundle? Check the latest Medicare NCCI database updates before you bill.

These modifiers are informational but affect payment. You must stack them with the discipline modifiers. Example: A PTA performing manual therapy would bill 97140-59-GP-CQ.

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