[August 2006]
On July 31, 2006 CMS issued its notice of the final rule to
update the SNF Prospective Payment System (PPS). We
have calculated the Connecticut rates based upon the final
rule.
While we believe these rates have been computed based upon
the letter of the notice, they may be different than the
rates that will eventually be paid by the Medicare program.
We do not anticipate the difference to be significant.
The factors utilized in calculating the FY '07 Medicare
rates are as follows:
-
The rates reflect an update increase of 3.1 percentage
points calculated using the full market basket index.
-
Rate changes in each region in Connecticut are also
affected by changes to each region's wage adjustment
factor as well as the change in the market basket
inflation factor. For your information, we have
enclosed the following table which compares
Connecticut's wage adjustment factors published by (CMS)
and used in the calculation of rates effective October
1, 2006 and January 1, 2006.
October 1, 2006
January 1, 2006
Fairfield
1.2657
1.2394
New Haven
1.1953
1.2042
New London, Norwich
1.1932
1.1345
Hartford, Litchfield, Middlesex, Tolland
1.0894
1.1073
Windham
1.1709
1.1730
As you can see, the wage adjustment factor has decreased for
the New Haven, Hartford and Windham regions. However,
based upon our calculations, using the above factors, it is
anticipated that providers in all regions of Connecticut may
expect an increase in Medicare reimbursement for FY '07.
Also, pleased be advised that the temporary 128% increase in
the PPS per diem payment for any SNF resident with Acquired
Immune Deficiency Syndrome (AIDS), as provided for under
Section 511 of the Medicare Prescription Drug, Improvement
and Modernization Act of 2003 (MMA), will remain in effect
until the implementation of case-mix refinements in the SNF
PPS.
Providers should feel free to contact Vincent Ruocco, LLC,
CPA at (203) 932-2931 or vruocco@artcpas.com
