United States

Senior Living Health Care Connection: FY17 SNF PPS proposed rule


On April 25, 2016, the Centers for Medicare & Medicaid Services (CMS) issued its proposed rule regarding fiscal year 2017 Medicare payment rates for skilled nursing facilities (SNFs), effective Oct. 1, 2016. In the proposed ruling, CMS estimates that the net market basket update will increase by 2.1 percent, or approximately $800 million from fiscal 2016. This is the result of a 2.6 percent market basket increase, which is reduced by 0.5 percent productivity adjustment.

There was no forecast error adjustment (reduction), since the difference between the forecasted and actual fiscal 2015 SNF market basket percentage change did not exceed a 0.5 percentage-point threshold. It is important to note that facilities may not see an exact 2.1 percent increase in rates due to the possible changes in wage index, which may cause the actual rate to be slightly higher or lower.

The proposed ruling was published in the Federal Register on April 25, 2016. View the purposed ruling here.

If you have any questions, please feel free to reach out to your personal RSM contact, or call 1 800 274 3978.

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