CMS proposes 3.3% market basket increase for 2008

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The Centers for Medicare & Medicaid Services has officially proposed a 3.3% market basket update for skilled nursing facilities for fiscal year 2008.

The update, which translates to an increase of $690 million in payments, would go to those nursing facilities that provide skilled nursing and rehabilitation care to Medicare beneficiaries. The proposal would update rates using a 2004 market basket. CMS market baskets reflect price inflation that providers have to deal with to deliver medical services. The rule also would provide additional payment for SNF residents with HIV/AIDS.

President Bush and the Medicare Payment Advisory Commission (MedPAC) both recommended no market basket increase for fiscal year 2008. CMS will accept public comments on its proposal until June 29.