FY 2023 Skilled Nursing Facilities Proposed Rule Summary

On April 15, 2022, CMS published in the Federal Register (87 FR 22720) a proposed rule updating for fiscal year 2023 the Medicare skilled nursing facility (SNF) payment rates, SNF Quality Reporting Program (QRP) and the SNF Value-Based Purchasing Program (VBP). The proposed rule would update the federal per diem rates under the SNF Prospective Payment System; the ICD-10 code mappings for patient classification; and the SNF QRP and SNF VBP Programs. CMS proposes a recalibration of the Patient Driven Payment Model budget neutrality adjustment (referred to as a parity adjustment). It also includes a proposal to establish a permanent cap policy to smooth year-to-year changes in the SNF wage index by applying a cap on negative wage index changes greater than a 5 percent decrease from the prior year. CMS seeks input on establishing minimum staffing requirements for long term care facilities. Comments on the proposed rule are due by June 10, 2022.