SAFE Act

The SAFE Act amends the Social Security Act to include physical therapists and occupational therapists as health professionals for annual wellness visits under Medicare, specifically for fall risk assessments and prevention services for individuals who have fallen in the previous year. This change applies to annual wellness visits furnished on or after January 1, 2026. This is happening now because there is a recognized need to address falls in the elderly population, which are a significant cause of injury and healthcare costs. The bill's passage will immediately expand the scope of services covered by Medicare, creating a new, consistent revenue stream for therapy providers. The money trail for this bill flows directly from Medicare reimbursements to healthcare providers. Physical therapy and occupational therapy clinics, as well as staffing agencies that supply these professionals, are positioned to capture this increased demand. The mechanism is direct payment for services rendered under Medicare Part B. While no specific dollar amounts are appropriated in the bill text, the expansion of covered services for a large demographic (Medicare beneficiaries who have fallen) represents a significant increase in the total addressable market for these services. Companies that operate large networks of therapy clinics or provide staffing for these services will see a direct benefit. Historically, similar expansions of Medicare coverage for specific services have led to increased utilization and revenue for the providers of those services. For example, when Medicare coverage for telehealth services was expanded during the COVID-19 pandemic, companies like Teladoc Health ($TDOC) saw significant revenue growth, with $TDOC stock rising over 100% from March 2020 to July 2020. While the scale differs, the mechanism of expanding covered services to a large beneficiary pool directly translates to increased demand and revenue for providers. The bipartisan sponsorship with 51 cosponsors suggests a high likelihood of passage, similar to other healthcare bills that address specific, non-controversial health issues. Specific winners include large healthcare providers with extensive physical and occupational therapy services. Companies like LabCorp ($LH) and Quest Diagnostics ($DGX) may see indirect benefits through increased diagnostic testing related to fall assessments, but direct beneficiaries are therapy providers. U.S. Physical Therapy ($USPH) operates outpatient physical and occupational therapy clinics and stands to gain directly from increased Medicare reimbursements. Select Medical Holdings ($SEM) also operates outpatient rehabilitation clinics. Staffing agencies like AMN Healthcare Services ($AMN) and RCM Technologies, which place physical and occupational therapists, will see increased demand for their services. PTCT (PTC Therapeutics) is not relevant here as it is a biopharmaceutical company; a more appropriate ticker for therapy services would be U.S. Physical Therapy ($USPH). The next step is for the bill to be considered by the Committees on Energy and Commerce and Ways and Means. Given the bipartisan support and the nature of the bill, it is likely to move through committee. If passed by the House, it would then proceed to the Senate. The effective date for the amendment is January 1, 2026, meaning companies have a clear timeline to prepare for the increased demand.