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CMS Issues Proposed Rule for PPS Fiscal 2023 update
The Centers for Medicare & Medicaid Services (CMS) issued the proposed rule for the skilled nursing facility (SNF) prospective payment system (PPS) fiscal year (FY) 2023 update. AHCA pulled out the following highlights:
- The proposed rule provides for a net market basket increase for SNFs of 3.9 percent beginning October 1, 2022, but for a proposed parity adjustment of 4.6 percent.
The 3.9 percent market basket update reflects an unadjusted market basket increase of 2.8 percent increased by 1.5 percent forecast error adjustment, as well as a reduction of 0.4 percentage points, in accordance with the multifactor productivity adjustment required by Section 3401(b) of the Affordable Care Act.
- However, due to the proposed parity adjustment, CMS estimates that the net market basket update would decrease Medicare SNF payments by approximately $320 million in FY 2023
- AHCA developed a summary for members. DHCFA members can access this by logging in to this website and visiting the Member area and clicking on AHCA Member Resources.
In the SNF PPS proposed rule, CMS is soliciting input to help the agency establish minimum staffing requirements that nursing homes will need to meet to ensure all residents are provided safe, high-quality care, and nursing home workers have the support they need. This input will be used in conjunction with a new research study being conducted by CMS to determine the optimal level and type of nursing home staffing needs. The agency intends to issue proposed rules on a minimum staffing level requirement for nursing homes within one year.
CMS is also requesting stakeholder input on a measure that would examine staff turnover levels in nursing homes for possible inclusion in CMS’ SNF Value-Based Purchasing (VBP) Program, which rewards facilities with incentive payments based on the quality of care they provide to people with Medicare.