Post-Acute Providers Slated for $1.3B Raise in 2019

The Medicare rate increases are slated for SNFs, hospices, and two categories of inpatient care.

Skilled nursing facilities, hospices, and inpatient facilities for rehabilitation or psychiatric care will receive $1.3 billion more in fiscal year 2019 than they did this year, if the Centers for Medicare & Medicaid Services finalizes a set of proposals announced Friday.

The annual update affects Medicare policies for four separate payment systems:

Skilled Nursing Facility Prospective Payment System (SNF PPS)

• Update: +2.4%, as required by the Bipartisan Budget Act of 2018
• Estimated impact: $850 million increase
• Note: Without the statutory requirement, the market basket update factor would have been 1.9%, which would have resulted in an estimated increase of $670 million.

Inpatient Rehabilitation Facility Prospective Payment System (IRF PPS)

• Update: +1.35%
• Estimated impact: $75 million increase
• Note: If more recent data becomes available, it could affect the rate used in the final rule.

Medicare Hospice Benefit

• Update: +1.8%
• Estimated impact: $340 million increase
• Note: The annual cap increased to $29,205 for fiscal year 2019, up 1.8% from $28,689 this year.

Inpatient Psychiatric Facilities Prospective Payment System (IPF PPS)

• Update: +0.98%
• Estimated impact: $50 million increase

Comments on the proposals will be accepted through June 26.