Have you reviewed the new Medicare Part A rates effective October 1, 2024? The SNF final rule, published August 6, 2024, includes updates impacting rates for the federal fiscal year 2025. Key changes include:
- Market basket increase of 3%
- Forecast error adjustment increase of 1.7%
- Productivity adjustment decrease of 0.5%
These adjustments result in a net increase of 4.2%. Download our complimentary rate calculator to pull rates for your SNF.
In addition, each SNF provider should have received their value-based purchasing (VBP) incentive multiplier for FY 2025, available in the internet quality improvement and evaluation system (iQIES). Some providers also may be subject to the quality reporting program (QRP) penalty, indicated by a non-compliance letter, which would have been posted in iQIES if applicable. Please note that all Medicare payments are reduced by a 2% sequestration adjustment.
Your billing team should be aware of changes impacting rates as of October 1, 2024, and billing systems should be updated accordingly.
For PointClickCare Users
- Add a new Medicare Part A schedule effective October 1, 2024 under “Payer Rules and Rates.”
- Enter the VBP incentive multiplier under the Reimbursement Rates percentage in the “edit rates” link.
- Set up the sequestration adjustment under the reduction to net reimbursement field in the “edit payer rules” link.
For Matrix Users
- Update Medicare A rates under “Facility” > “A/R Setup” > “Medicare Billing Setup.” Add a new line beginning October 1, 2024 with the updated wage index in the “AWM” field.
- Enter the VBP incentive multiplier under “Payer Setup.” Edit the Medicare Part A payer line and select “Charge Calculator Settings” > “Rate Override” with a begin date of October 1, 2024. If subject to the QRP penalty, it will be noted here with a “-2” if applicable.
For any questions regarding these changes, please reach out to a professional at Forvis Mazars.