CMS Announces SNF Payment Increase

The Centers for Medicare and Medicaid Services (CMS) will increase Skilled Nursing Facility (SNF) Medicare payments by 1.8% in fiscal year 2013. In a notice published on July 27th, CMS indicated that the cumulative $670 million pay hike will take effect on October 1, 2012.

The 1.8% rate reflects a nursing home market basket (inflationary) adjustment rate of 2.5%, minus 0.7% for the mandated Multifactor Productively (MFP) adjustment. SNF PPS rate schedules vary by region and will range from 0.3% to 2.7%.

Prior to the notice, SNFs had expressed concern that CMS might announce either a freeze or reduction in the FY 2013 SNF Prospective Payment System rates.  “After years of reimbursement volatility, today's update to Medicare payments is welcome news to skilled nursing providers,” said Mark Parkinson, president and CEO of the American Health Care Association. “AHCA appreciates CMS' balanced approach to this year's Medicare payment system after recognizing the many rounds of government reductions the profession has already endured.”

The full 105-page CMS notice contains details on rate breakdowns, including those therapy and resource utilization groups information.  CMS is set to formally publish the FY 2013 SNF PPS rates in Thursday's Federal Register.  VHCA will make available links to SNF rate calculation models once they are available.