How much will Medicare reimbursement rates change this October?

Moody's Investors Service has released a report on how recent CMS proposals would affect various healthcare providers.

The proposals would cause an increase in Medicare reimbursement rates for fiscal year 2017. CMS plans to finalize the details by August 1.

The proposals, which will go into effect October 1, will influence acute care hospitals, inpatient rehabilitation facilities, long-term acute care hospitals, skilled nursing facilities and hospice providers.

Below are the proposed rate increases by sector, as well as Moody's Investors Service's views on them.

  • Acute care hospitals: 0.9 percent increase — Moody's sees this as modestly credit positive.
  • Inpatient rehabilitation facilities: 1.45 percent increase — Moody's sees this as modestly positive for operators.
  • Long-term acute care hospitals: 1.45 percent increase — Moody's believes this will "offset the implementation of other changes to the payment system that will be negative for issuers operating LTHCs."
  • Skilled nursing facilities: 2.1 percent increase — Moody's sees this as credit positive for operators.
  • Hospice providers: 2.0 percent increase — Moody's sees this as credit positive for operators.

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