CHA News Article

CMS Issues SNF Prospective Payment System Proposed Rule

The Centers for Medicare & Medicaid Services (CMS) has issued the attached proposed rule for the federal fiscal year (FFY) 2017 skilled-nursing facility (SNF) prospective payment system. CMS proposes a rate increase of 1.45 percent, reflecting a 2.6 percent market basket increase, reduced by a required 0.5 percent productivity adjustment, for a final update of 2.1 percent. CMS estimates that aggregate payments to SNFs will increase 2.1 percent, or $800 million, compared to payments in FFY 2016.

To meet the Improving Medicare Post-Acute Care Transformation (IMPACT) Act’s requirements, CMS proposes one new assessment-based measure and three new claims-based measures for inclusion in the SNF quality reporting program. Starting in FFY 2018, SNFs that do not submit required quality data are subject to a 2.0 percent reduction in annual reimbursement updates.

CHA is currently reviewing the proposed rule and will provide members with a more detailed summary in the coming weeks. CHA also will host a members-only call May 26 at 10 a.m. (PT) to discuss these important provisions and solicit member input. Comments on the proposed rule are due June 20. A fact sheet is available on the CMS website.