A bill to amend title XVIII of the Social Security Act to raise the Medicare reimbursement limitation on outpatient physical therapy services to $500 per year, to remove the requirements that a physical therapist maintain a fully equipped office and that the owner be present during treatment, and to provide an alternative to the salary equivalency standard for determining the reasonable cost of physical therapy services.

Amends title XVIII (Medicare) of the Social Security Act to increase from $100 to $500 the payment limitation for outpatient physical therapy services under the Medicare program.

Stipulates that a physical therapist who furnishes outpatient services exclusively in individuals' homes need not maintain an equipped office if the therapist maintains a single identifiable repository for records and has access to the necessary equipment. States that the term "outpatient physical therapy services" includes the services rendered by a therapist either under the control of an employer or on his or her own responsibility.

Provides, as an alternative to the salary plus expenses method of payment for determining the cost of physical therapy services, that such determination may be based on the average professional personnel cost per patient visit furnished in a hospital, home health agency, or skilled nursing facility, plus expenses.