CMS Announces Medicare Rate Increase for Long Term Care Providers
In the latest edition of the Federal Register, dated May 7, 2014, CMS announced a proposed increase the prospective payment rates for inpatient rehabilitation facilities. In the aggregate, the proposed update would result in a 2.1 percent increase over the current prospective payment rates. This net increase includes the estimated market basket increase factor for fiscal year 2014 of 2.7 percent, reduced by 0.2 percentage points in accordance with sections 1886(j)(3)(C)(ii)(ll) and 1886(j)(3)(D)(iv) of the Act, and further reduced by 0.4 percentage point productivity adjustment as required by section 1886(j)(3)(C)(ii)(l) of the Act. The estimated impact of the proposed rule is a $160 million increase in PPS payments for fiscal year 2015.