Medicare Finalizes Cuts to Skilled Nursing Facilities for 2023

Skilled nursing facilities (SNFs) will see a reduction in payments of 4.6% phased in over a 2-year period beginning in fiscal year 2023 (October 1, 2022) based on the parity adjustment policy finalized on July 29, 2022. The parity adjustment is a result of SNFs receiving payments nearly 5% higher than expected after the implementation of the Patient Driven Payment Model (PDPM) that went into effect on October 1, 2019. Medicare expected the PDPM transition to be budget neutral; instead, SNFs saw increased profits. Updates to Medicare reimbursement rates for 2023 of 3.9% largely mitigate the impact of the parity adjustment, but it is unclear how the SNF industry will respond to this payment reduction, particularly with Part B payment reductions slated to return January 1, 2023, unless Congress acts to stop them.

ASHA’s Advocacy Efforts
In comments to Medicare earlier this year [PDF], ASHA noted that SLPs working in SNFs remain committed to ensuring Medicare beneficiaries maintain access to medically necessary services while being good stewards of the Medicare trust fund. However, we also noted that a blunt, across the board payment reduction may not achieve regulatory compliance and controlled spending. ASHA also expressed concerns that it may jeopardize access to care for Medicare beneficiaries and lead to additional layoffs or reduced hours and benefits for clinicians.

What’s Next?
ASHA will monitor reports of layoffs, reduction in hours, or changes in service delivery leading up to and following implementation of the parity adjustment to determine its impact on SLPs. ASHA members can help address impeding Medicare Part B payment cuts by asking your members of Congress to support H.R. 6020/S. 3314, the Supporting Medicare Providers Act of 2021.

Questions?
Contact reimbursement@asha.org