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Last Updated on:
07/09/08

 

Congress Approves Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000
December 15, 2000

Congress passed a 5-year, $35 billion Medicare and Medicaid provider relief package this evening that promises to restore deep cuts in funding for the government health care programs attributed to the 1997 Balanced Budget Act (BBA).

The measure will increase the nursing component of all SNF PPS RUG categories by 16.66% over a 18-month period beginning in April, increase the SNF PPS inflation adjustment to full "market basket" in FY 2001, and extend the moratorium on the Part B therapy caps through 2002. The bill will also require nursing facilities that participate in the Medicare or Medicaid programs to begin posting nurse staffing information on their halls beginning in 2003.

Summary

Provision

Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000 (H.R. 4577)

Increase Medicare PPS Nursing Component

The nursing component of each per diem rate would be increased by 16.66% beginning on April 1, 2001 and running through Oct. 1, 2002. GAO would also be required to complete a study of nursing staff ratios by August 1, 2002.

Skilled Nursing Facility (SNF) Medicare Market Basket Update

Would eliminate the –1% reduction in SNF market basket update in FY2001, and set the update at market basket minus 0.5% in FYs 2002 and 2003. Would also require the GAO to complete a report on the adequacy of SNF Medicare payment rates by July 1, 2002.

Redistribute Rehabilitation Category RUG Payment Add-Ons

Would redistribute the 20% payment add-ons for RHC, RMC, and RMB across all 14 rehabilitation category RUGs. Payments for RUC, RUB, RUA, RVC, RVB, RVA, RHC, RHB, RHA, RMC, RMB, RMA, RLB, and RLA would increase by 6.7% beginning on April 1, 2001. All other RUG groups assigned 20% payment add-ons by last year’s Balanced Budget Refinement Act would not be affected and would continue to receive the 20% add-ons.

Part B Consolidated Billing

Would repeal the impending SNF consolidated billing requirement except for Part A covered stays and Part B therapy services.

Part B Therapy Caps

Would extend the moratorium on the $1,500 per year therapy caps through 2002.

Posting Nursing Facility Staffing

Would require SNFs to post in a uniform, visible place the current number of licensed and unlicensed nursing staff directly responsible for resident care, daily and for each shift.

Exempt Critical Access Hospitals from SNF PPS

Would exempt critical access hospital swing beds from Medicare SNF PPS. Such hospitals would be paid on a reasonable cost basis, beginning with the first cost reporting period following the bill’s enactment.

Medicaid ‘Upper Payment Limit’ Phase-In

Would require HHS to issue a final regulation establishing the Medicaid ‘upper payment limit’ by Dec. 31, 2000. The handful of states which gained approval to use ‘IGTs’ to boost their federal Medicaid match before Oct. 1, 1992 would be granted an eight year rather than five year phase-in of the limit.

 

More information on the above Act...

Click here* to view the attachment on "Medicare, Medicaid and SCHIP Benefits Improvement and Protection Act of 2000: HIGHLIGHTS: December 15, 2000"

* Adobe Acrobat Reader is required to view the Portable Document Format (.PDF) file properly.

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