On July 27, the Centers for Medicare and Medicaid Services (CMS) announced a fiscal year 2013 Medicare payment update for skilled nursing facilities that will average 1.8% over this year's level.
CMS estimates the total impact of the FY 2013 SNF payment rate update to be an increase of approximately $670 million.
Actual payment changes for individual facilities between the current year, which began October 1, 2011 and next year, which begins on October 1, 2012, will vary by geographic area and case mix.
How CMS updates payment rates
CMS updates the payment rates for SNFs annually, using a market basket index that reflects changes in the prices of goods and services used to furnish covered care in nursing homes.
The FY 2013 market basket increase factor is 2.5% and the MPF adjustment for FY 2013 is a negative 0.7%, resulting in a net FY 2013 update of 1.8%.
The notice will appear in the Aug. 2 Federal Register.