August 2008

FY09 Medicare Rates for Connecticut SNFs
 

We have calculated the Medicare rates for Connecticut SNFs effective October 1, 2008.  Our calculations were based on the notice published by Centers for Medicare and Medicaid Services (CMS) on August 1, 2008. 

While we believe the 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 ’09 Medicare rates are as follows:

1.  The rates reflect an increase of 3.4 percentage points calculated using the full market basket increase factor.

2.  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 prepared the following table which compares Connecticut’s wage adjustment factors published by CMS and used in the calculation of rates effective October 1, 2007 and October 1, 2008.

 

          *Litchfield Country's classification changed from "Urban" to "Rural"

As you can see, the wage adjustment factors have decreased for the New Haven, New London and Windham regions, and increased for the Fairfield and Hartford 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 ’09.

Also, please 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.

Should you have any questions or need further information, please do not hesitate to contact Vincent Ruocco, LLC, CPA at 203.932.2931.

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