Rehabilitative Therapy Practices NAICS 621340

Nov 10, 2025 - ACA Insurance Premiums May Increase Significantly

• Affordable Care Act (ACA) premiums may increase significantly in 2026 because enhanced premium tax credits for policies are set to expire at the end of 2025. Rehabilitative therapy practices may be negatively impacted if the number of people covered by health insurance decreases as a result. The credits are a key political flashpoint fueling the ongoing government shutdown, according to Investopedia. Congressional Democrats say that they won’t vote to reopen the government without action on subsidies and other health care issues, while GOP leaders say they won’t negotiate on health care reform while the government is shut down. The expanded credits, first introduced by the Biden-era American Rescue Plan, increased the previous subsidy amount and eliminated the eligibility income cap. The credits are commonly credited with making Obamacare plans cheaper, doubling signups, and driving the uninsured rate to record lows, according to Investopedia. Center on Budget and Policy Priorities researchers found that without the enhanced premium tax credits, an average ACA enrollee will see their out-of-pocket premiums more than double, spiking by $1,000 a year. People in their sixties with middle incomes could pay $25,000 more.
• Hundreds of billions of dollars in cuts to federal health care spending passed as part of the 2025 Budget Reconciliation Act, also known as the One Big Beautiful Bill Act, could negatively impact rehabilitative therapy professionals who work in schools. Schools are legally required to provide certain medical services, such as for students with disabilities who are enrolled in a special education program. Medicaid cuts in schools are expected to lead to a reduction in resources for students with disabilities, school health staff layoffs, and a reduction in mental and behavioral health services, according to the Healthy Schools Campaign. “The students who have disabilities often rely on Medicaid to cover therapies for speech, physical therapy, occupational therapy,” said Melissa Francis, a New Orleans parent union organizer with advocacy group Step Up Louisiana. “I know these cuts will limit these services, making it harder for them to function in school.” The 2025 Budget Reconciliation Act also includes reduced support for people with Low-Income Subsidy (LIS) coverage through Medicare and loss of Medicare coverage for noncitizens, according to the Johns Hopkins Bloomberg School of Public Health. Rehabilitative therapy practices may be negatively impacted by the decrease in coverage. About 40% of Medicare beneficiaries receive low-income subsidies, according to Bloomberg School of Public Health professors. Immigrants with legal status can currently meet eligibility requirements to qualify for Medicare but the new legislation restricts eligibility to US citizens, green card holders, and legal immigrants from a few specific locations.

• The physical therapist workforce shortage is likely to continue through 2037, according to The American Physical Therapy Association (APTA). These shortages could significantly affect patient access to timely care without strategic interventions. "The growing demand for physical therapist services, coupled with an aging workforce, underscore the necessity for targeted interventions to expand our workforce," the APTA notes.
• Rehabilitative therapy industry employment and average wages for nonsupervisory employees increased slightly during the first seven months of 2025, according to the US Bureau of Labor Statistics. Rehabilitative therapy practice sales are forecast to grow at a 6.08% compounded annual rate from 2025 to 2029, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.