Image of nurses' hands at computer keyboard

As expected, the advisory arm of the Centers for Medicare& Medicaid Services Thursday recommended that Congress freeze payment ratesfor skilled nursing facilities for fiscal year 2009.

In proposing a 0% update, the Medicare Payment andAdvisory Commission (MedPAC) followed its draft recommendations issued lastmonth. Skilled nursing facilities received a 3.3% increase in the market basketupdate for fiscal year 2008. The market basket represents annual cost-of-livingincreases.

Also Thursday, MedPAC recommended a freeze for homehealth agencies and inpatient rehabilitation facilities. It recommended anestimated 3% increase in payment rates for hospitals.