Last week, the Centers for Medicare & Medicaid Services (CMS) issued the proposed rule for the skilled nursing facility (SNF) prospective payment system (PPS) fiscal year (FY) 2023 update.

Highlights include:

• The proposed rule provides for a net market basket increase for SNFs of 3.9 percent beginning October 1, 2022, but for a proposed parity adjustment of 4.6 percent.
• The 3.9 percent market basket update reflects an unadjusted market basket increase of 2.8 percent increased by 1.5 percent forecast error adjustment, as well as a reduction of 0.4 percentage points, in accordance with the multifactor productivity adjustment required by Section 3401(b) of the Affordable Care Act.
• However, due to the proposed parity adjustment, CMS estimates that the net market basket update would decrease Medicare SNF payments by approximately $320 million in FY 2023.
• While CMS questions the need for a second delay, it solicits comments on a possible delay or phase of the proposed parity adjustment.

AHCA/NCAL has developed a summary of the payment rule and the greatest impacts on members.

AHCA/NCAL held a webinar on Thursday, April 14 that provided an overview of the proposed rule and a briefing to the membership on submitting comments to CMS. The webinar was recorded and all registrants should receive an email when the recording is available.

Please direct any questions to Director of Reimbursement Policy Kate Dickson.