|
Proposed FY08 SNF
PPS Rates for Connecticut Not All Good News
A few weeks ago
CMS issued a proposed rule associated with the SNF Prospective
Payment System (PPS). If adopted, the rule would update PPS
payment rates for FY08. Among other things the rule would revise
and rebase the SNF market basket, and would modify the threshold for
the adjustment to account for market basket forecast errors.
The purpose of
this memorandum is to provide information on how the proposed rule,
if finalized in its current form, would impact payments to
Connecticut nursing facilities. This information may be useful to
individual nursing facilities in terms of their FY08 budgets.
With regard to the
market basket rate, the rule would set the FY08 amount at 3.3
percent.
As for the
forecast error adjustment, the rule would raise the threshold for
triggering an adjustment from 0.25 percentage points to 0.50
percentage points, effective with FY08.
While the proposed
market basket percentage would cause aggregate nursing
facility payments under PPS to increase by 3.3 percent, as in prior
years actual rates to individual facilities would be
influenced by the change in the wage indexes for each area.
The following table shows the changes in the wage indexes for each
region in Connecticut.
The changes were primarily caused by the use of
the full (non-weighted) CBSA-based index. In the prior period the
index used was a blend of the MSA-based index and the CBSA-based
index.
As a result, based upon the proposed rule some
facilities would realize payment increases greater than the market
basket rate of 3.3 percent while others would realize increases less
than 3.3 percent.
The table that follows outlines the anticipated
percentage changes in PPS per diem rates for each region in
Connecticut.
The table indicates that SNFs in Fairfield
County would realize PPS rate increases of greater than 3.3 percent,
while all other regions in Connecticut would realize rate increases
of less than 3.3 percent. New London County would realize the
smallest increase due to the significant decrease in the wage index
for that geographic region.
The information contained herein is based upon
a proposed rule. Actual rates based upon the final rule may be
different. The final rule will likely be published in August 2007.
Providers should
feel free to contact Vincent Ruocco, LLC, CPA with questions. Mr.
Ruocco can be reached at (203) 932-2931.
|
