Summary

GAO reviewed the Department of Health and Human Services, Centers for Medicare and Medicaid Services' (CMS) new rule on prospective payment system and consolidated billing for skilled nursing facilities for FY 2009. GAO found that (1) the final rule updates the payment rates used under the prospective payment system for skilled nursing facilities for fiscal year 2009, and also makes technical corrections in the regulation text with respect to Medicare bad debt payments to skilled nursing facilities and the reference to the definition of urban and rural as applied to skilled nursing facilities; and (2) with the exception of the delay in the rule's effective date, CMS complied with the applicable requirements.