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Virginia Health Care Association | Virginia Center for Assisted Living

SNF Prospective Payment System Rule Includes 2.4% Increase

SNF Prospective Payment System Rule Includes 2.4% Increase

The Centers for Medicare and Medicaid Services (CMS) has released the federal fiscal year 2017 (FY17) Skilled Nursing Facility Prospective Payment System (SNF PPS) final rule. Based on changes contained within this final rule, CMS projects that aggregate payments in FY 2017 to SNFs will increase by $920 million, or 2.4 percent, from payments in FY 2016. The proposed rule indicated an estimated net market basket increase for SNFs of 2.1 percent or $800 million beginning October 1, 2016.

Specifically, AHCA/NCAL is pleased that CMS explored the Association’s inquiry on the calculations of the unadjusted per diem rates.  AHCA/NCAL has expressed its appreciation that CMS took the necessary steps toward ensuring accurate payments that directly benefit millions of elderly Americans in our centers.

AHCA/NCAL has reviewed the final rule and developed a detailed summary (log-in required). The summary focuses on the Association’s recommendations in key areas, including:

  • Market Basket and State Minimum Wage Laws
  • Wage Index
  • Unadjusted Per Diems
  • Value-Based Purchasing
  • Quality Reporting Program
  • Payment Models Research

You can view the detailed comments submitted by AHCA/NCAL to CMS on the SNF PPS proposed rule in June here.

Please contact Mike Cheek or David Gifford with any questions.