Skip to content

CMS Issues FY18 SNF PPS Final Rule

On 7/31/17, CMS issued the final rule [CMS-1679-F] for Fiscal Year (FY) 2018 Medicare payment rates and quality program provisions for skilled nursing facilities (SNFs). The final rule for FY 2018 establishes a net market basket increase of 1.0 percent. CMS established 1.0 percent as the maximum market basket update for post-acute care providers in FY 2018 to offset part of the cost of last year’s “permanent doc fix” bill. The FY 2018 update would have otherwise been a net increase of 2.3 percent.

The new rule also includes a provision that would impose a penalty of a 2.0 percent reduction to the SNF market basket percentage change if a SNF does not satisfy the reporting requirements for the FY 2018 SNF Quality Reporting Program (QRP).

CMS projects aggregate payments to SNFs will increase in FY 2018 by $370 million, or 1.0 percent, from payments in FY 2017.  The $370 million amount differs from the estimated $390 million in the proposed rule.

AHCA has put together a document that provides highlights and a preliminary overview of the payment updates, the SNF Value-Based Purchasing (VBP) program new components, and the IMPACT Act quality reporting additions.