CMS Releases Proposed Rule – Medicare PPS Rates to Increase 2%

Carl J. Pucci in Finance & Reimbursement

CMS has just released its 2014/2015 proposed rule which will increase Medicare SNF payments by approximately 2%, effective 10/1/2014.  This net increase will add approximately$750M annually to SNF providers.  The proposed rule will now be open for public comment for the next 60 days prior to CMS issuing its final rule.  Attached is the AHCA synopsis of the rule, as well as various CMS links with further details.

Members should note that CMS is updating its Wage Index with the intent to more accurately measure paid wages throughout the country.  AHCA has indicated that approximately 63% of providers should see no change, 15% would see related increases, and 22% related decreases as a result (phasing in over a two-year period.)


AHCA will provide further analysis, as well as a website tool which will reflect the Wage Index methodology and related provider impacts sometime next week.


NYSHFA will begin analysis of the proposed rule as well, and provide updates going forward.

  NYSHFA CONTACT: Carl J. Pucci
Director, Finance & Reimbursement
518-462-4800 x36