Long Term Care Update
by Rachel Owens
There is a proposed Medicare rate increase on the drawing board for skilled nursing facilities. If the proposed rule (CMS-1605-P) is approved by CMS, there will be a market basket increase of 2% beginning 10/1/2014. This will result in an estimated economic impact on the country is $750 Million in FY 2015. There are also wage index changes on the horizon. These wage index reductions/increases vary by region. In addition there are upcoming changes to the Medicare reimbursable bad debt percentages. For fiscal year 2014, the reimbursable portion of non-dual bad debts has been reduced from 70% to 65%. For dual eligible bad debts, only 76% – reduced even further for fiscal year 2015 to 65%.
On the Medicaid front, the FRV (Fair Rental Value) valuation will be changing to reflect renovations, bed additions and replacements (that were not adjusted with initial submission and now are included in the rates). Also, NC’s Medicaid billing system has seen changes as well. NC Tracks has been in the news for all the issues related to billing, and for good reason. Beyond those problems, they have made the Medicaid application process a headache with extensive delays.
Many other changes continue to thwart our healthcare system. Langdon & Company LLP continues to stay updated on the most recent issues. Our professionals will be happy to help you sort through the details and understand the facts!
Rachel Owens is a Senior Accountant with Langdon & Company LLP. She specializes in serving healthcare clients, including skilled nursing facilities and behavioral healthcare providers.