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GAO-13-837R 1 (2013-08-20)

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G      A             U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548


B-325064


August 20, 2013

The Honorable Max Baucus
Chairman
The Honorable Orrin G. Hatch
Ranking Member
Committee on Finance
United States Senate

The Honorable Fred Upton
Chairman
The Honorable Henry A. Waxman
Ranking Member
Committee on Energy and Commerce
House of Representatives

The Honorable Dave Camp
Chairman
The Honorable Sander M. Levin
Ranking Member
Committee on Ways and Means
House of Representatives

Subject: Department of Health and Human Services, Centers for Medicare & Medicaid Services:
        Medicare Program; Prospective Payment System and Consolidated Billing for Skilled
        Nursing Facilities for FY 2014

Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the Department of Health and Human Services, Centers for Medicare &
Medicaid Services (CMS) entitled Medicare Program; Prospective Payment System and
Consolidated Billing for Skilled Nursing Facilities for FY 2014 (RIN: 0938-AR65). We received
the rule on August 2, 2013. It was published in the Federal Register as a final rule on August 6,
2013. 78 Fed. Reg. 47,936.

The final rule updates the payment rates used under the prospective payment system for skilled
nursing facilities (SN Fs) for fiscal year 2014. In addition, it revises and rebases the SNF market
basket, revises and updates the labor related share, and makes certain technical and
conforming revisions in the regulation text. This final rule also states the policy for reporting the
SNF market basket forecast error in certain limited circumstances and adds a new item to the
Minimum Data Set (MDS), Version 3.0 for reporting the number of distinct therapy days. Finally,
this final rule adopts a change to the diagnosis code used to determine which residents will
receive the AIDS add-on payment, effective for services provided on or after the October 1,
2014, the implementation date for conversion to the International Classification of Diseases,
10th revision, Clinical Modification.


GAO-13-837R

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