CMS Issues FY 2022 SNF Proposed Payment Rule, AHCA Encourages Comment

The Centers for Medicare & Medicaid Services (CMS) today issued the proposed rule for the skilled nursing facility (SNF) prospective payment system (PPS) fiscal year (FY) 2022 update. 

The proposed rule includes a net market basket increase of 1.3 percent. CMS estimates that the net market basket update would increase Medicare SNF payments by approximately $444 million in FY 2022. The 1.3 percent net market basket is the result of statutorily-mandated adjustments.

Additionally, CMS discusses proposals to rebase and revise the Market Basket weights (a regularly scheduled update), solicits comments on possible adjustments/recalibration to the Patient-Driven Payment Model (PDPM), and proposes a new Consolidated Billing exclusion.
According to CMS, preliminary data shows the shift to the Patient-Driven Payment Model (PDPM) is not budget-neutral as required by statute. CMS believes there is a 5 percent increase in overall payment levels. Based on the data from the first two years of PDPM, CMS indicates that a PDPM recalibration is necessary to reduce overall payments by 5 percent and achieve budget neutrality.

The team at AHCA team has developed a summary of the proposed rule, which includes an overview of the payment updates, the SNF value-based purchasing (VBP) program, and the Improving Medicare Post-Acute Care Transformation (IMPACT) Act quality reporting additions.

AHCA is holding a webinar on how to prepare regulatory comments on April 21st at 2:30 EST – Registration link:

On this webinar, AHCA/NCAL President & CEO Mark Parkinson will brief members on the recalibration methods proposed by CMS, including delayed and phased implementation. He will also discuss how these will impact the profession and provide guidance for submitting comments to CMS about the proposed approaches by the June 7 deadline.

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