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CMS Issues FY 2023 SNF Proposed Payment Rule

Posted Apr 12, 20222 min Read

Payment & Reimbursement

Today, 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. Highlights include:

  • The proposed rule provides for a net market basket increase for SNFs of 3.9 percent beginning October 1, 2022,┬ábut 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.
  • While CMS questions the need for a second delay, it┬ásolicits comments on a possible delay or phase of the proposed parity adjustment.

Here’s a summary of the payment rule and the greatest impacts on members.

Additionally, AHCA/NCAL will host a member-only webinar on Thursday, April 14 at 4 p.m. Eastern. AHCA/NCAL President and CEO Mark Parkinson will provide an overview of the proposed rule and brief the membership on submitting comments to CMS. The webinar will be recorded, and all registrants will receive an email when the recording is ready. If you have questions or need assistance registering, please email