CMS Issues FY 2022 SNF Proposed Payment Rule

On April 8, 2021, the federal Centers for Medicare & Medicaid Services (CMS) issued the proposed rule for the skilled nursing facility (SNF) prospective payment system (PPS) fiscal year (FY) 2022 update.

The proposed rule includes a net market basket increase of 1.3 percent.  CMS estimates that the net market basket update would increase Medicare SNF payments by approximately $444 million in FY 2022.  The 1.3 percent net market basket is the result of statutorily-mandated adjustments.

Additionally, CMS discusses proposals to rebase and revise the Market Basket weights (a regularly scheduled update), solicits comments on possible adjustments/recalibration to the Patient-Driven Payment Model (PDPM), and solicits delete budget proposes a new Consolidated Billing exclusion.

The team at AHCA team has developed a summary of the proposed rule, which includes an overview of the payment updates, the SNF value-based purchasing (VBP) program, and the Improving Medicare Post-Acute Care Transformation (IMPACT) Act quality reporting additions.