The American Health Care Association is challenging a recommendation by the Medicare Payment Advisory Commission that seeks to “eliminate critical market basket updates” for skilled nursing facilities. 

“SNFs are still trying to understand the implications of the new payment system launched in October. We must take steps to ensure the most vulnerable in our country have access to quality long term and post-acute care,” AHCA President and CEO Mark Parkinson said in a statement Tuesday. 

“MedPAC recommendations to eliminate critical market basket updates are not the answer – particularly in light of ongoing serious Medicaid rate challenges among states, as well as CMS proposals impacting Medicaid,” he added. 

MedPAC commissioners reviewed Medicare’s payment adequacy for SNFs and discussed update options for providers in 2021 during a meeting in early December. The report found that payment adequacy indicators for beneficiary access to care, quality of care, SNFs’ access to capital, and Medicare payments and SNF costs were all “positive.”

The commission’s draft recommendation calls for a zero payment update, while also cautioning against moves to decrease payments. 

Parkinson disagreed with the direction MedPAC is taking. 

“MedPAC’s recent commission meeting session on SNFs demonstrates what we already know: the future of long term and post-acute care providers is at risk. Centers across the country are closing, leaving seniors and their families with no place to go for care. MedPAC reports that SNFs are averaging a -0.3 percent margin. That means that many providers are losing money while struggling to keep their doors open,” he added. 

LeadingAge also expressed concerns about the commission’s recommendation. 

“While LeadingAge objects to a recommendation of no payment update in light of the rising costs to deliver high-quality care while meeting the increased requirements of participation and complexities of operations in the new PDPM system, it was a positive sign to hear the discussion of the impact of Medicaid on nursing homes,” the organization stated in a blog post Friday. 

“We applaud Commissioner Ginsburg for her inquiries into the dynamics of Medicaid and her concern about the adequacy of Medicaid rates and access implications for those needing long-term care,” it added.