Proposed Rule on FY 2021 Skilled Nursing Facility Payments Available for Comment

Posted on April 15, 2020

The Centers for Medicare & Medicaid Services (CMS) recently released a proposed rule to update the skilled nursing facilities (SNF) prospective payment system (PPS) for fiscal year (FY) 2021, which begins Oct. 1. Highlights of the proposed rule include:

  • A net payment increase of 2.1%, comprised of a 2.7% marketbasket update, offset by a statutorily required 0.4 percentage point productivity reduction and budget-neutrality adjustment.
  • An increase in the labor-related share of the rate to 71.3% from the current 70.9%, which will increase payments to facilities with an area wage index greater than 1.0
  • Continued monitoring of provider behavior, including patient outcomes and aggregate SNF PPS payments under the patient driven payment model (PDPM) that was implemented for FY 2020. The CMS indicated that the agency will consider future PDPM-related offsets.
  • No changes to the SNF value-based purchasing program measures, scoring or payment policies; rather, the CMS made nominal updates to the program.

The CMS will accept comments on the proposed rule through June 9. In the next few weeks, the MHA will provide members with a detailed summary of the proposed rule and facility-specific impact analyses. To further assist members, the association will release its draft comments prior to the due date. Members with questions should contact Vickie Kunz at the MHA.

Tags: CMS, PPS, SNF, Vickie Kunz

Posted in: Member News

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