FY 2022 SNF PPS Proposed Rule: $444 Million Increase to SNF Medicare Payment Rates 

FY 2022 SNF PPS Proposed Rule: $444 Million Increase to SNF Medicare Payment Rates 

CMS issued a proposed rule today, April 8, 2021, that would update Medicare payment policies and rates for skilled nursing facilities under the Skilled Nursing Facility (SNF) prospective payment system (PPS) for fiscal year (FY) 2022. 

According to CMS – 

“CMS estimates that the aggregate impact of the payment policies in this proposed rule would result in an increase of approximately $444 million in Medicare Part A payments to SNFs in FY 2022. This estimate reflects a $445 million increase from the update to the payment rates of 1.3 percent, which is based on a 2.3 percent SNF market basket update, less a 0.8 percentage point forecast error adjustment and a 0.2 percentage point multifactor productivity (MFP) adjustment, and a $1.2 million decrease due to the proposed reduction to the SNF PPS rates to account for the recent blood-clotting factors exclusion (see below). These impact figures do not incorporate the SNF VBP reductions that are estimated to be $184.25 million in FY 2022.” 

For more information, please visit the Fiscal Year (FY) 2022 Skilled Nursing Facility Prospective Payment System Proposed Rule (CMS 1746-P) Fact Sheet 

Included in the fact sheet is information regarding recalibrating the PDPM Parity Agreement, as well as updates to SNF QRP and SNF VBP. 

The proposed rule will be displayed April 8, 2021, at the Federal Register’s Public Inspection Desk and will be available under “Special Filings,” at http://www.federalregister.gov/inspection.aspx.   Once posted, CMS will accept public comments until June 7. 




David Carter | Director, Health Care Finance & Policy

C 360.888.5702


April 8, 2021