On May 8, 2008, CMS released a proposed rule that would reduce Medicare reimbursements for skilled nursing facilities by a net 0.3% in fiscal year 2009.

A report by CQ HealthBeat states that under the rule, Medicare reimbursements for SNFs would decrease by $770 million, or 3.3%, in FY 2009. However, a proposed Medicare market-basket reimbursement update of 3.1% would offset most of the decrease, CMS said.

Acting CMS Administrator Kerry Weems in a statement said, "We are confident that, with the payment rates we are proposing today, the nation's skilled nursing facilities would be able to continue to provide high-quality services to those who need critical skilled nursing facility care services."

Bruce Yarwood, president and CEO of the www.ahca.org American Health Care Association, disagreed. He said, "We intend to make it crystal clear to federal, state and local officials that the proposed cuts not only threaten seniors' access to quality care nationwide but will also negatively impact the economy and employment base" (CQ HealthBeat, 5/1).