The Centers for Medicare and Medicaid Services’ explanation of SNF RUGs PPS:
"Section 4432(a) of the Balanced Budget Act (BBA) of 1997 modified how payment is made for Medicare skilled nursing facility (SNF) services. Effective with cost reporting periods beginning on or after July 1, 1998, SNFs are no longer paid on a reasonable cost basis or through low volume prospectively determined rates, but rather on the basis of a prospective payment system (PPS). The RUGs PPS payment rates are adjusted for case mix and geographic variation in wages and cover all costs of furnishing covered SNF services (routine, ancillary, and capital-related costs).”
AHCA closely monitors the release of the SNF RUGs PPS proposed and final rules each fiscal year, to solicit input from members and analyze the impact the rules may have on the profession. AHCA traditionally submits comments to CMS after the release of the proposed rule to notify the agency of any concerns by the Association and the profession.