Long-Term Care

MedPAC recommends ­significant payment cuts

PPS Alert for Long-Term Care, April 1, 2012

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Despite protests by providers in late 2011, when the recommendation was proposed, MedPAC unanimously voted to advocate that:

  • Congress eliminate the next fiscal year’s (FY) market basket update and direct the Secretary of the U.S. Department of Health and Human Services (HHS) to revise the PPS for SNFs in FY 2013.
  • Rebasing should begin in FY 2014, with an initial reduction of 4% and subsequent reductions over an appropriate transition period until Medicare’s payments are “better aligned with providers’ costs.”
  • Congress should direct HHS to cut payments to SNFs with relatively high risk-adjusted rehospitalization rates for their Medicare-covered stays.

This is an excerpt from a member only article. To read the article in its entirety, please login or subscribe to PPS Alert for Long-Term Care.

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