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Regulation No.
Medicare Program; Prospective Payment System and Consolidated Billing for Skilled Nursing Facilities; Updates to the Quality Reporting Program and Value-Based Purchasing Program for Federal Fiscal Year 2023; Changes to the Requirements for the Director of Food and Nutrition Services and Physical Environment Requirements in Long-Term Care Facilities

This rule (CMS-1765-F) is currently on public display at the Federal Register and will publish on August 3, 2022. The wage index file is available on the SNF PPS Wage Index webpage.  Tables 5 and 6 show the FY 2023 PDPM case-mix adjusted federal rates and associated indexes (ZIP) for urban and rural SNFs.

Permanent Cap on Wage Index Decreases

The FY 2023 SNF PPS final rule establishes a permanent  5% cap on annual wage index decreases to smooth the impact of year-to-year changes in SNF payments related to changes in the SNF wage index.  The wage index files are not capped.  However, the annual SNF Pricer Change Request (CR) provides the methodology that MACs are instructed to use to calculate the capped wage index - Medicare Part A Skilled Nursing Facility (SNF) Prospective Payment System (PPS) Pricer Update Fiscal Year (FY) 2023.