ARTICLE
INARF received the following information from Tracy Mitchell with Bradley Associates regarding inflation-adjusted medians for Group Home rates. We had a call today with both OMPP and Myers & Stauffer people. In a nutshell, FSSA has agreed to add 10% to the inflation adjusted medians for the 10/1/22 group home rates. As you may recall, we had concerns that with the expiration of the 10% add-on, medians would not accurately reflect the cost increases due to DSP wage increases for all providers. In the future, as cost reports with a period including any months with the add-on are included in the median calculation, their costs will be adjusted accordingly for any months that the add-on was not in place. For example, 12/31/21 cost reports when used for medians a year from now, will have a 5% adjustment since their cost theoretically include the increased DSP wage costs for the period July 1, 2021 – December 31, 2021. Please note that any cost report that includes any of the time period of March 1, 2020 through December 31, 2020 is not used for median purposes by rule due to the Public Health Emergency. An older cost report is used and then inflated forward to the appropriate period for the median calculation. Also please note that the CMS Nursing Home without Capital Market Basket Index is heating up recently and we expect inflation factors in rates to be north of 6%. If you have any questions or concerns, please do not hesitate to contact us.
INARF received the following information from Tracy Mitchell with Bradley Associates regarding inflation-adjusted medians for Group Home rates.
We had a call today with both OMPP and Myers & Stauffer people. In a nutshell, FSSA has agreed to add 10% to the inflation adjusted medians for the 10/1/22 group home rates. As you may recall, we had concerns that with the expiration of the 10% add-on, medians would not accurately reflect the cost increases due to DSP wage increases for all providers. In the future, as cost reports with a period including any months with the add-on are included in the median calculation, their costs will be adjusted accordingly for any months that the add-on was not in place. For example, 12/31/21 cost reports when used for medians a year from now, will have a 5% adjustment since their cost theoretically include the increased DSP wage costs for the period July 1, 2021 – December 31, 2021.
Please note that any cost report that includes any of the time period of March 1, 2020 through December 31, 2020 is not used for median purposes by rule due to the Public Health Emergency. An older cost report is used and then inflated forward to the appropriate period for the median calculation. Also please note that the CMS Nursing Home without Capital Market Basket Index is heating up recently and we expect inflation factors in rates to be north of 6%.
If you have any questions or concerns, please do not hesitate to contact us.