On October 31, 2025, the Centers for Medicare & Medicaid Services (CMS) released its Calendar Year 2026 Medicare Physician Fee Schedule (PFS) Final Rule, and it brings significant updates for Remote Therapeutic Monitoring (RTM).
For rehab therapy leaders, these RTM updates present a timely opportunity to scale hybrid care models, engage more patients remotely, and unlock new revenue streams with greater flexibility.
Effective January 1, 2026, CMS is introducing two new CPT codes within the RTM MSK family of codes. These additions make RTM billing more practical by recognizing shorter monitoring durations and clinical engagements that were previously non-reimbursable.
CPT Code 98985 provides reimbursement for patients with 2 to 15 days of data transmission through RTM MSK devices.
CPT Code 98979 provides reimbursement for patients with 10 to 19 minutes of monthly treatment management services.
Previously, RTM billing required 16+ days of data collection within a 30-day period and a minimum of 20 minutes of provider management time. These thresholds often excluded short-term patients or lower-intensity monitoring. The new codes address that gap. (Learn more about mastering RTM billing.)
Together, 98985 and 98979 complement the existing set of RTM codes, giving practices more flexibility in how they deliver and document RTM care for MSK patients.
There are several changes in the final conversion factor for 2026, which reflects an increase compared to 2025.
For 2026, CMS introduced two separate conversion factors as required by statute:
Note: Most outpatient therapy providers fall into the non-qualifying APM group.
Recent legislation provides a +2.5% payment increase for 2026, along with an estimated +0.49% adjustment to account for changes in work RVUs.
As a result, the 2026 conversion factor is projected at:
These updates indicate a favorable payment environment for RTM and hybrid care adoption in 2026
The following table outlines the 2025 and 2026 Medicare national average payments for RTM CPT codes in a non-facility setting:
*These are national average payment rates. Actual payments will vary by locality. A provider's payment may be higher or lower than the national payment amounts shown.
For rehab therapy practices, the 2026 updates mark a significant expansion in RTM reimbursement potential:
Ultimately, these changes make RTM not just a billing mechanism but a strategic growth driver for hybrid care models.
With new codes going live on January 1, 2026, practices that plan ahead will be best positioned to capture the opportunity. For a comprehensive guide, see our best practices for implementing RTM.
Key steps include:
Limber simplifies RTM implementation with a purpose-built platform that integrates virtual monitoring, automated data capture, and billing support. Your team can focus on patient care, not paperwork. Whether you're expanding existing RTM services or preparing to launch in 2026, Limber helps clinics operationalize remote monitoring with minimal lift and maximum impact.
The 2026 CMS Final Rule makes RTM more adaptable to real-world rehab therapy by lowering barriers and expanding reimbursement opportunities.For forward-thinking practices, this is more than a regulatory update. It's an opportunity to build sustainable hybrid care models that benefit both patients and providers. If you're ready to capture the RTM opportunity for 2026, we invite you to request a demo of the Limber Health platform.
Please note: This blog is for informational purposes only and does not constitute billing or legal advice. Please consult a qualified expert for detailed information on CMS regulations, medical billing, and reporting CPT codes. This review includes public information about the Final 2026 CMS Physician Fee Schedule Payment Rules, available here. Not intended to be used as source material.
Two, both effective January 1, 2026, and both specific to musculoskeletal care. CPT 98985 covers device supply for 2 to 15 days of data transmission in a 30-day period. CPT 98979 covers 10 to 19 minutes of treatment management services in a calendar month and requires at least one real-time interactive communication with the patient or caregiver.
National average payments for non-qualifying APM providers in a non-facility setting are $21.71 for 98975, $40.08 for 98985 and 98977, $26.39 for 98979, $54.11 for 98980, and $41.42 for 98981. Rates for qualifying APM participants run slightly higher. Actual payment varies by locality, and a provider's amount may be higher or lower than the national average.
Start with the patients already receiving between-visit support whose engagement fell below the old thresholds, because that work is now billable. Confirm documentation captures time in minutes and the format of each interactive communication. Decide who owns the between-visit work: the treating therapist, a dedicated in-house team, or a turnkey partner. Train staff on the workflow before the first patient.
CMS updates the Medicare Physician Fee Schedule annually, so the RTM code set and its payment rates are reviewed every year. A CY 2027 proposed rule has been published and is open for public comment through September 14, 2026. Providers can review it and submit comments through the Federal Register and Regulations.gov. Policy is not final until CMS publishes the final rule, typically in the fall.
