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SNF Prospective Payment System

Rates & Indices



Description of Part B Add-On Methodology:

As explained in the May 12, 1998 interim final rule (63 FR 26252), the BBA 1997 requires the per diem rates paid under the SNF PPS to include a "Part B add-on" that reflects items and services (other than those specifically excluded) which, prior to July 1, 1998, had been paid under Part B but furnished to SNF residents during a Part A covered stay. Accordingly, it was necessary to determine the Part B allowable charges (including coinsurance) associated with the SNFs contained in the cost report data base. We accomplished this by matching 100 percent of the Medicare Part B SNF claims associated with Part A covered SNF stays related to the SNF cost reporting periods beginning in the 1995 base year. We computed the matched Part B allowable charges at a facility level by the appropriate cost report cost center (for example, laboratory services, supplies) with the cost report data.

Rates and Indices (Zip files):

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Last Modified on Thursday, September 16, 2004