The Centers for Medicare & Medicaid Services (CMS) earlier this week issued its federal fiscal year 2024 (FFY 2024) Medicare SNF PPS rule, covering October 2023 through September 2024. CMS is proposing an overall net market basket increase of 4%, which is 0.3% higher than originally proposed in April. We estimate the net impact will be an annual increase of $35 million for Massachusetts’ skilled nursing facilities. The proposed 4% net increase is a combination of a series of formulaic factors including: (1) an unadjusted market basket increase of 3%, (2) a 3.6% upward adjustment for a prior year forecast error, which is then offset by (3) the 2nd year and final year 2.3% clawback for the Patent Driven Payment Model (PDPM) parity adjustment recalibration and (4) a 0.2% productivity factor decrease.
Additional Information on the FFY 2024 rule can be found here:
- A fact sheet discussing the major provisions of the final rule, including final changes to the SNF Quality Reporting Program and Value-Based Purchasing program.
- Read the final rule here.