CMS Announces Final Rule that will Result in an Average 1.1% Rate Reduction

The Centers for Medicare and Medicaid Services (CMS) has just issued its final rule regarding the SNF rate recalibration. According to CMS, “the FY 2010 recalibration of the CMIs results in a reduction in payments to nursing homes of $1.050 billion, or 3.3 percent.  However, this decrease would be largely offset by this fiscal year’s update to Medicare payments to skilled nursing facilities.  The update—an increase of 2.2 percent or $690 million for FY 2010—is based on the change in prices of a ‘market basket’ of goods and services included in covered skilled nursing facility stays.  The percentage increase in the market basket is used to compute the update factor annually.  The combination of the market basket increase and the recalibration of the CMIs yields the 1.1 percent reduction.”

It is important to note that this changes reflects an average rate decrease October 1 by 1.1%.  Each facility’s situation will be different. You are encouraged to use the CMS Skilled Nursing Facility PC Pricer to see how you will be affected.

For more information, contact Lori Costa at or (916) 469-3377. 


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