On July 31, 2024, the Centers for Medicare & Medicaid Services (CMS) issued a final rule updating Medicare payment policies and rates for skilled nursing facilities under the Skilled Nursing Facility Prospective Payment System (SNF PPS) for fiscal year (FY) 2025. For FY 2025, CMS is increasing SNF PPS rates by 4.2% based on the SNF market basket increase of 3%, plus a 1.7% market basket forecast error adjustment, less a 0.5% productivity adjustment.
The final rule also changes enforcement policies, with CMS expanding the type of Civil Monetary Penalties (CMPs) that can be imposed to allow for more per instance and per day CMPs. The revisions in this rule will permit both types of penalties to be imposed for deficiencies identified during the same survey. These enforcement updates go into effect October 5. However, CMS will operationalize these requirements beginning March 3, 2025. MSCA and AHCA are disappointed these changes were adopted by CMS in the final rule in the face of opposition from 12 national organizations, as CMS’ punishment focus will result in diverting critical resources from making investments in direct care.
CMS also finalized updates to the SNF Quality Reporting Program (QRP), SNF VBP program, SNF PPS Patient-Driven Payment Model ICD-10 Code Mappings, and the SNF PPS wage index.
- The CMS Fact Sheet discusses the major provisions of the final rule.
- To view the final rule, visit the Federal Register at www.federalregister.gov/public-inspection/current.