CMS updates SNF Medicare manual to implement sequestration cuts

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The Centers for Medicare & Medicaid Services has updated the online Medicare Provider Reimbursement Manual, modifying instructions related to the 2% reimbursement reductions resulting from sequestration.

CMS updated Chapter 41, Skilled Nursing Facility and Skilled Nursing Facility Complex Cost Reports, Form CMS-2540-10. Parts of four worksheets — E, H, I and J — have been changed due to the sequestration cuts that took effect April 1.

Worksheet E, Part I, is used to calculate SNF reimbursements under the prospective payment system. The changes outline how different calculations should now be done, per the Balanced Budget and Emergency Deficit Control Act. This is the law that created the across-the-board spending cuts known as sequestration.

New instructions in the manual also include SNF bad debt calculations for Medicare Part A and Part B, per the Middle Class Tax Relief and Job Creation Act of 2012.

The manual update also includes a handful of other clarifications and edits. These include changes to Reject Codes related to electronic cost reporting specifications.

Click here to access the full manual update.

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