Regulations, Uncategorized

Severe cuts to SNF reimbursements proposed for FY 2015

In the budget document released by the Office of Management and Budget, the White House’s proposed 2015 budget includes severe cuts to skilled nursing facility reimbursements. This proposal is drawing strong criticism from the nation’s largest long-term care provider group.

To cut federal spending on healthcare by $402 billion over the next 10 years, the White House proposes to “encourage efficient post-acute care by adjusting payment updates for certain post-acute providers,” according to the budget document released Tuesday. Those adjustments would include an accelerated schedule for reducing skilled nursing facility Medicare market basket updates. This would start with a 2.5% reduction in 2015, then taper to a less severe 0.97% update by 2022.

Overall, post-acute payments adjustments would equal about $98 billion in savings through 2024. In addition to those general payment adjustments, the spending plan calls for equalizing payments to skilled nursing facilities and inpatient rehabilitation facilities for certain services, and adjusting SNF payments to reduce hospital readmissions.

To read the full budget document, click here.