Nursing homes challenge regulators' authority to cut Medicare payments

 Leaders of the largest nursing home association in America are openly questioning the legality of federal regulators' proposal to reduce Medicare reimbursement levels by 3.3% in fiscal year 2009.

Officials with the Centers for Medicare & Medicaid Services are calling their proposed payment cut for fiscal year 2009 a "forecast error correction." They say the reduction will correct an error in forecasting budget neutrality for case-mix adjustments in refining the Resource Utilization Group system for fiscal 2006.

"We believe that the forecast error correction is unacceptable under the law and completely ignores the rise in the acuity of nursing home patients," said American Health Care Association President and CEO Bruce Yarwood in comments submitted to CMS. "We strongly recommend and ask that you remove this adjustment."

Norman DeLisle, MDRC
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