CMS plans to cut Medicare payments by 11.1%, starting Oct. 1

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Medicare payments to nursing homes would be trimmed by 11.1% beginning Oct. 1, under a corrective proposal the federal government issued on Friday. The call for reduced funding comes amid reports that providers have been paid more than $2 billion above federal projections since a new payment system took effect late last year.

“We are appalled that the Centers for Medicare and Medicaid Services chose to implement an 11.1% across-the-board rate cut for skilled nursing facilities in one year" said Larry Minnix, LeadingAge President and CEO. The American Health Care Association said the proposal “makes reductions beyond what is necessary for budget neutrality."

CMS Administrator Donald M. Berwick, M.D. said the adjustments are part of an effort to pay skilled care operators "properly" in the next fiscal year.

The recalibration will result in a reduction to skilled nursing facility payments of $4.47 billion or 12.6%, according to CMS. However, that drops to an 11.1% cut when offsetting increases are factored in. McKnight's will provide continuing coverage of this breaking story.