1.5 Billion USD Overpayment for Nursing Home Industry in 2009

As a result of intense lobbying the CMS is giving SNF’s, nursing homes that provide nursing and rehab to Medicare beneficiaries recovering from a hospital stay, a rate increase worth more than 1.5 bn USD next year.

There are no strings attached to this windfall that skilled nursing facilities are receiving. Nursing home residents may or may not receive a better quality or care or life as a result of this windfall.

The Center for Medicare Advocacy called upon the CMS to recalibrate skilled nursing facilities rates as well as to take steps to make sure that the dollars are used as the CMS and Congress intended.

CMS has admitted an overpayment to skilled nursing facilities since Jan 2006. The second part of the windfall is the market basket increase which is an annual adjustment based on changes in the cost of living and inflation.

CMS gave SNF’s $780 mn by not recalibrating rates as well as a market basket increase.