NEWS & REFERENCE - MEDICARE PPS

The annual update on SNF Medicare PPS rates for included no significant policy changes and confirmed an overall $1 billion decrease in Medicare payments for FY 2003.

Published in the Federal Register of July 31, 2002, the update reported on implementation of

• MPAF--the shorter MDS form for PPS assessments
  
  
• Swing-bed hospitals converting to Medicare SNF PPS and using a Swing-Bed MDS starting with cost reporting periods on or after July 1, 2002

The rates published in the notice result in an overall $1 billion decrease in payments for facilities in FY 2003 due to three factors:

• expiration of the temporary 16.6 percent increase in the nursing component of the federal rate—a decrease of $900 million in payments
  
  
• expiration of the temporary 4 percent increase in payment for all RUGs—a decrease of $500 million
  
  
• annual increase in payments from FY 2002 to FY 2003—an increase of $400 million