Summary of Final Rule 2002
July 31, 2002

Source: Centers for Medicare and Medicaid Services (CMS)

View the Final Rule (1.8mb pdf).

The annual update on SNF Medicare PPS rates for included no significant policy changes and confirmed an overall $1 billion decrease in Medicare payments for FY 2003.

Published in the Federal Register of July 31, 2002, the update reported on implementation of

  • MPAF--the shorter MDS form for PPS assessments

  • Swing-bed hospitals converting to Medicare SNF PPS and using a Swing-Bed MDS starting with cost reporting periods on or after July 1, 2002
This update did not revise consolidated billing regulations and reported that CMS has decided to not implement any case-mix refinements for FY 2003.

The rates published in the notice result in an overall $1 billion decrease in payments for facilities in FY 2003 due to three factors:

  • expiration of the temporary 16.6 percent increase in the nursing component of the federal rate—a decrease of $900 million in payments

  • expiration of the temporary 4 percent increase in payment for all RUGs—a decrease of $500 million

  • annual increase in payments from FY 2002 to FY 2003—an increase of $400 million