Important Medicare Update for the Long Term Care Industry
Recently the ACHCA announced some positive news for the Long Term Care Industry we heard some good news.
Rather than issuing a proposed rule, CMS will be issuing an Update Notice for the SNF Prospective Payment System for FY 2013. This notice is intended to be published on or before July 31, 2012, stating that there will be no policy changes that would have required a Proposed Rule and a comment period. Instead, the market basket update, along with a subtraction from the required productivity adjustment, will be announced.
Apparently CMS has recognized the struggle Long Term Care Provider are currently undergoing and a need to return stability to the profession.
The following are the expected changes as put forth by ACHCA:
- A market basket update of approximately 2.6%. The economic analysis firm Global Insight provides the data to CMS on the market basket. Currently, projections as of Q4 2011 indicate this to be 2.6%, which is being currently monitored for updates to see how data from Q1 2012 might affect this estimate.
- A productivity adjustment of 0.8%. This is due to the Affordable Care Act’s stipulation that Medicare payments for SNFs be reduced $14.6 billion over 10 years. Yesterday, new rules were announced which suggest an 0.8% productivity adjustment.
- Estimated Impact of an approximate 1.8% SNF payment update. This may change after Global Insight provides Q1 2012 data which would potentially affect the market basket update.
Once we receive further updates CMS or ACHCA we will continue to keep you informed.