CMS Proposed Rate Increases for Skilled Nursing Providers and Hospice Providers

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CMS Announces Proposed Rate Increases and Other Changes for Skilled Nursing Providers and Hospice Providers in Fiscal Year 2022
Tuesday, April 13, 2021
On April 8, 2021, the Center for Medicare & Medicaid Services (“CMS”) announced a proposed rate increase of 1.3 percent for skilled nursing providers in fiscal year 2022. It is estimated this will result in approximately $444 million increase in payments to skilled nursing facilities (SNF) under Medicare Part A for the fiscal year.  This increased payment rate does not incorporate the SNF Value-Based Program (VBP) reductions that CMS estimates to be $184.25 million for FY 2022.
CMS is also looking at three additional fiscal areas.  First, it is looking at whether it should recalibrate the Patient Driven Payment Model (PDPM) Parity Adjustment.  A parity multiplier is applied for PDPM components to maintain the relative value of each case mix index (CMI) while achieving congruence on overall SNF payments under both the PDPM system and existing RUG-4 systems.

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