News

CMS Releases FY 2027 Proposed Rule: SNFs In Line to Receive 2.4% Reimbursement Increase

BACKGROUND
The Centers for Medicare and Medicaid Services (CMS) is required to update Medicare payment rates and quality programs annually. Each year, CMS publishes a proposed rule for the upcoming fiscal year (FY) and opens a comment period for stakeholders to review and provide comments to CMS before releasing the final rule.

WHAT YOU NEED TO KNOW
On April 2nd, CMS issued the Fiscal Year 2027 Prospective Payment System and Consolidated Billing for Skilled Nursing Facilities proposed rule. This proposal contains many areas of importance and significance for SNF providers, particularly regarding payment, quality, and other matters.

Key elements of the proposed rule include:
PAYMENT UPDATE

• CMS estimates the aggregate impact of payment policies would result in an increase of $888 million, or 2.4%, in Medicare Part A payments to SNFs in FY 2027.
• The overall economic impact of the SNF VBP is an estimated reduction of $203 million during FY 2027.

SNF QUALITY REPORTING PROGRAM (QRP)

• CMS proposes removing four new Social Determinants of Health (SDOH) items, including Living Situations, Food, and Utilities.
• In an effort to decrease the lag time in public reporting, CMS is proposing to reduce the data submission timeframe by 3 months, beginning with the FY 2029 SNF QRP.
• In order to align SNF QRP requirements with other post-acute providers, CMS is proposing to require MDS data on all SNF residents receiving skilled care, regardless of payer.

SNF VALUE-BASED PURCHASING (VBP PROGRAM)

• CMS is proposing to update the “snapshot date” for measures calculated using
• MDS data to maintain alignment with newly proposed SNF QRP submission deadlines.

Preferred Therapy Solutions (PTS) will submit comments and feedback to CMS to advocate for therapy services, SNF providers, and, most importantly, the residents we are privileged to serve. We encourage all providers to do the same!

PTS is thoroughly reviewing the proposed rule and is planning an in-depth webinar for our partners in the coming weeks. This webinar will provide an overview of the proposed rule, discuss the potential impact on SNF providers, and provide information on how we can all
advocate for our industry.

Preferred Therapy Solutions continues to provide vital information that may impact rehabilitation management, reimbursement policies, and clinical programs, supported by compliance and regulatory requirements that are necessary for a thorough understanding of practices and procedures.

If you have any questions, contact Matt Nash, Vice President of Business and Development at mnash@preftherapy.com