[Federal Register Volume 77, Number 149 (Thursday, August 2, 2012)]
[Notices]
[Pages 46214-46255]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-18719]
[[Page 46213]]
Vol. 77
Thursday,
No. 149
August 2, 2012
Part IV
Department of Health and Human Services
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Center for Medicare & Medicaid Services
Medicare Program; Prospective Payment System and Consolidated Billing
for Skilled Nursing Facilities for FY 2013; Notice
Federal Register / Vol. 77, No. 149 / Thursday, August 2, 2012 /
Notices
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Medicare & Medicaid Services
[CMS-1432-N]
RIN 0938-AR20
Medicare Program; Prospective Payment System and Consolidated
Billing for Skilled Nursing Facilities for FY 2013
AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS.
ACTION: Notice.
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SUMMARY: This notice updates the payment rates used under the
prospective payment system (PPS) for skilled nursing facilities (SNFs),
for fiscal year (FY) 2013.
DATES: Effective Date: This notice is effective on October 1, 2012.
FOR FURTHER INFORMATION CONTACT: Penny Gershman, (410) 786-6643 (for
information related to clinical issues).
John Kane, (410) 786-0557 (for information related to the
development of the payment rates and case-mix indexes).
Kia Sidbury, (410) 786-7816 (for information related to the wage
index).
Bill Ullman, (410) 786-5667 (for information related to level of
care determinations, consolidated billing, and general information).
SUPPLEMENTARY INFORMATION: To assist readers in referencing sections
contained in this document, we are providing the following Table of
Contents.
Table of Contents
I. Executive Summary
II. Background
A. Current System for Payment of SNF Services Under Part A of
the Medicare Program
B. Requirements of the Balanced Budget Act of 1997 (BBA) for
Updating the Prospective Payment System for Skilled Nursing
Facilities
C. The Medicare, Medicaid, and SCHIP Balanced Budget Refinement
Act of 1999 (BBRA)
D. The Medicare, Medicaid, and SCHIP Benefits Improvement and
Protection Act of 2000 (BIPA)
E. The Medicare Prescription Drug, Improvement, and
Modernization Act of 2003 (MMA)
F. The Affordable Care Act
G. Skilled Nursing Facility Prospective Payment--General
Overview
1. Payment Provisions--Federal Rate
2. FY 2013 Rate Updates Using the Skilled Nursing Facility
Market Basket Index
III. FY 2013 Annual Update of Payment Rates Under the Prospective
Payment System for Skilled Nursing Facilities
A. Federal Prospective Payment System
1. Costs and Services Covered by the Federal Rates
2. Methodology Used for the Calculation of the Federal Rates
B. Case-Mix Adjustments
C. Wage Index Adjustment to Federal Rates
D. Updates to Federal Rates
E. Relationship of Case-Mix Classification System to Existing
Skilled Nursing Facility Level-of-Care Criteria
F. Example of Computation of Adjusted PPS Rates and SNF Payment
IV. Monitoring Impact of FY 2012 Policy Changes and Certain SNF
Practices
A. RUG Distributions
B. Group Therapy Allocation
C. MDS 3.0 Changes
V. The Skilled Nursing Facility Market Basket Index
A. Use of the Skilled Nursing Facility Market Basket Percentage
B. Market Basket Forecast Error Adjustment
C. Multifactor Productivity Adjustment
D. Federal Rate Update Factor
VI. Consolidated Billing
VII. Application of the SNF PPS to SNF Services Furnished by Swing-
Bed Hospitals
VIII. Collection of Information Requirements
IX. Waiver of Proposed Rulemaking
X. Economic Analyses
Acronyms
In addition, because of the many terms to which we refer by acronym
in this notice, we are listing these abbreviations and their
corresponding terms in alphabetical order below:
AIDS Acquired Immune Deficiency Syndrome
ARD Assessment Reference Date
BBA Balanced Budget Act of 1997, Public Law 105-33
BBRA Medicare, Medicaid, and SCHIP Balanced Budget Refinement Act of
1999, Public Law 106-113
BIPA Medicare, Medicaid, and SCHIP Benefits Improvement and
Protection Act of 2000, Public Law 106-554
CAH Critical Access Hospital
CBSA Core-Based Statistical Area
CFR Code of Federal Regulations
CMI Case-Mix Index
CMS Centers for Medicare & Medicaid Services
COT Change of Therapy
EOT End of Therapy
EOT-R End of Therapy--Resumption
FQHC Federally Qualified Health Center
FR Federal Register
FY Fiscal Year
GAO Government Accountability Office
HCPCS Healthcare Common Procedure Coding System
HR-III Hybrid Resource Utilization Groups, Version 3
IHS IGI (Information Handling Services) Global Insight, Inc.
MDS Minimum Data Set
MFP Multifactor Productivity
MIPPA Medicare Improvements for Patients and Providers Act of 2008,
Public Law 110-275
MMA Medicare Prescription Drug, Improvement, and Modernization Act
of 2003, Public Law 108-173
MMSEA Medicare, Medicaid, and SCHIP Extension Act of 2007, Public
Law 110-173
MPAF Medicare PPS Assessment Form
MSA Metropolitan Statistical Area
OCN OMB Control Number
OMB Office of Management and Budget
OMRA Other Medicare-Required Assessment
PPS Prospective Payment System
RAI Resident Assessment Instrument
RAVEN Resident Assessment Validation Entry
RFA Regulatory Flexibility Act, Public Law 96-354
RHC Rural Health Clinic
RIA Regulatory Impact Analysis
RUG-III Resource Utilization Groups, Version 3
RUG-IV Resource Utilization Groups, Version 4
RUG-53 Refined 53-Group RUG-III Case-Mix Classification System
SCHIP State Children's Health Insurance Program
SNF Skilled Nursing Facility
STM Staff Time Measurement
STRIVE Staff Time and Resource Intensity Verification
UMRA Unfunded Mandates Reform Act, Public Law 104-4
I. Executive Summary
A. Purpose
This notice updates the SNF prospective payment rates for FY 2013
as required under section 1888(e)(4)(E) of the Act. It also responds to
section 1888(e)(4)(H) of the Act, which requires the Secretary to
``provide for publication in the Federal Register'' before the August 1
that precedes the start of each fiscal year, the unadjusted Federal per
diem rates, the case-mix classification system, and the factors to be
applied in making the area wage adjustment used in computing the
prospective payment rates for that fiscal year.
B. Summary of Major Provisions
This notice does not contain any proposals for new policies
applicable to the SNF PPS. In accordance with sections
1888(e)(4)(E)(ii)(IV) and (e)(5) of the Act, the Federal rates in this
notice reflect an update to the rates that we published in the final
rule for FY 2012 (76 FR 48486, August 8, 2011) and the associated
correction notice (76 FR 59265, September 26, 2011), equal to the full
change in the SNF market basket index, adjusted by the forecast error
correction, if applicable, and the Multifactor Productivity adjustment
for FY 2013.
C. Summary of Cost and Benefits
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Provision description Total costs Total benefits
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FY 2013 SNF PPS payment rate The overall economic This notice
update. impact of this accomplishes the
notice is an required update of
estimated $670 the SNF PPS payment
million in rates for FY 2013
increased payments in accordance with
to SNFs during FY the formula
2013. prescribed by law.
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II. Background
Annual updates to the prospective payment system (PPS) rates for
skilled nursing facilities (SNFs) are required by section 1888(e) of
the Social Security Act (the Act), as added by section 4432 of the
Balanced Budget Act of 1997 (BBA, Pub. L. 105-33, enacted on August 5,
1997), and amended by subsequent legislation as discussed elsewhere in
this preamble. Our most recent annual update occurred in a final rule
(76 FR 48486, August 8, 2011) that set forth updates to the SNF PPS
payment rates for FY 2012. We subsequently published a correction
notice (76 FR 59265, September 26, 2011) with respect to those payment
rate updates.
A. Current System for Payment of Skilled Nursing Facility Services
Under Part A of the Medicare Program
Section 4432 of the BBA amended section 1888 of the Act to provide
for the implementation of a per diem PPS for SNFs, covering all costs
(routine, ancillary, and capital-related) of covered SNF services
furnished to beneficiaries under Part A of the Medicare program,
effective for cost reporting periods beginning on or after July 1,
1998. In this notice, we update the per diem payment rates for SNFs for
FY 2013. Major elements of the SNF PPS include:
Rates. As discussed in section II.G.1. of this notice, we
established per diem Federal rates for urban and rural areas using
allowable costs from FY 1995 cost reports. These rates also included a
``Part B add-on'' (an estimate of the cost of those services that,
before July 1, 1998, were paid under Part B, but furnished to Medicare
beneficiaries in a SNF during a Part A covered stay). We adjust the
rates annually using a SNF market basket index, and we adjust them by
the hospital inpatient wage index to account for geographic variation
in wages. We also apply a case-mix adjustment to account for the
relative resource utilization of different patient types. As further
discussed in section II.G.1. of this notice, for FY 2013 this
adjustment will utilize the Resource Utilization Groups, version 4
(RUG-IV) case-mix classification system, and will use information
obtained from the required resident assessments using version 3.0 of
the Minimum Data Set (MDS 3.0). (The Office of Management and Budget
(OMB) has approved the resident assessment under OMB Control Number
(OCN) 0938-0739.) Additionally, as noted elsewhere in this preamble,
the payment rates at various times have also reflected specific
legislative provisions for certain temporary adjustments.
Transition. Under sections 1888(e)(1)(A) and (e)(11) of
the Act, the SNF PPS included an initial, three-phase transition that
blended a facility-specific rate (reflecting the individual facility's
historical cost experience) with the Federal case-mix adjusted rate.
The transition extended through the facility's first three cost
reporting periods under the PPS, up to and including the one that began
in FY 2001. Thus, the SNF PPS is no longer operating under the
transition, as all facilities have been paid at the full Federal rate
effective with cost reporting periods beginning in FY 2002. As we now
base payments entirely on the adjusted Federal per diem rates, we no
longer include adjustment factors related to facility-specific rates
for the coming FY.
Coverage. The establishment of the SNF PPS did not change
Medicare's fundamental requirements for SNF coverage. However, because
the case-mix classification is based, in part, on the beneficiary's
need for skilled nursing care and therapy, we have attempted, where
possible, to coordinate claims review procedures with the existing
resident assessment process and case-mix classification system. As
further discussed in section III.E. of this notice, in FY 2013, this
approach includes an administrative presumption that utilizes a
beneficiary's initial classification in one of the upper 52 RUGs of the
66-group RUG-IV case-mix classification system to assist in making
certain SNF level of care determinations. In the July 30, 1999 final
rule (64 FR 41670), we indicated that we would announce any changes to
the guidelines for Medicare level of care determinations related to
modifications in the case-mix classification structure (see section
III.E. of this notice for a more detailed discussion of the
relationship between the case-mix classification system and SNF level
of care determinations).
Consolidated Billing. The SNF PPS includes a consolidated
billing provision that requires a SNF to submit consolidated Medicare
bills to its fiscal intermediary or Medicare Administrative Contractor
for almost all of the services that its residents receive during the
course of a covered Part A stay. In addition, this provision places
with the SNF the Medicare billing responsibility for physical therapy,
occupational therapy, and speech-language pathology services that the
resident receives during a noncovered stay. The statute excludes a
small list of services from the consolidated billing provision
(primarily those of physicians and certain other types of
practitioners), which remain separately billable under Part B when
furnished to a SNF's Part A resident. A more detailed discussion of
this provision appears in section VI. of this notice.
Application of the SNF PPS to SNF services furnished by
swing-bed hospitals. Section 1883 of the Act permits certain small,
rural hospitals to enter into a Medicare swing-bed agreement, under
which the hospital can use its beds to provide either acute or SNF
care, as needed. For critical access hospitals (CAHs), Part A pays on a
reasonable cost basis for SNF services furnished under a swing-bed
agreement. However, in accordance with section 1888(e)(7) of the Act,
these services furnished by non-CAH rural hospitals are paid under the
SNF PPS, effective with cost reporting periods beginning on or after
July 1, 2002. A more detailed discussion of this provision appears in
section VII. of this notice.
B. Requirements of the Balanced Budget Act of 1997 (BBA) for Updating
the Prospective Payment System for Skilled Nursing Facilities
As added by section 4432(a) of the BBA, section 1888(e)(4)(H) of
the Act requires that we provide for publication annually in the
Federal Register:
1. The unadjusted Federal per diem rates to be applied to days of
covered SNF services furnished during the upcoming FY.
2. The case-mix classification system to be applied with respect to
these services during the upcoming FY.
3. The factors to be applied in making the area wage adjustment
with respect to these services.
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This notice provides these required annual updates to the Federal
rates.
C. The Medicare, Medicaid, and SCHIP Balanced Budget Refinement Act of
1999 (BBRA)
There were several provisions in the BBRA (Pub. L. 106-113, enacted
on November 29, 1999) that resulted in adjustments to the SNF PPS. We
described these provisions in detail in the SNF PPS final rule for FY
2001 (65 FR 46770, July 31, 2000). In particular, section 101(a) of the
BBRA provided for a temporary 20 percent increase in the per diem
adjusted payment rates for 15 specified groups in the original, 44-
group Resource Utilization Groups, version 3 (RUG-III) case-mix
classification system. In accordance with section 101(c)(2) of the
BBRA, this temporary payment adjustment expired on January 1, 2006,
upon the implementation of a refined, 53-group version of the RUG-III
system, RUG-53 (see section II.G.1. of this notice). We included
further information on BBRA provisions that affected the SNF PPS in
Program Memoranda A-99-53 and A-99-61 (December 1999).
Also, section 103 of the BBRA designated certain additional
services for exclusion from the consolidated billing requirement, as
discussed in section VI. of this notice. Further, for swing-bed
hospitals with more than 49 (but less than 100) beds, section 408 of
the BBRA provided for the repeal of certain statutory restrictions on
length of stay and aggregate payment for patient days, effective with
the end of the SNF PPS transition period described in section
1888(e)(2)(E) of the Act. In the final rule for FY 2002 (66 FR 39562,
July 31, 2001), we made conforming changes to the regulations at Sec.
413.114(d), effective for services furnished in cost reporting periods
beginning on or after July 1, 2002, to reflect section 408 of the BBRA.
D. The Medicare, Medicaid, and SCHIP Benefits Improvement and
Protection Act of 2000 (BIPA)
The BIPA (Pub. L. 106-554, enacted December 21, 2000) also included
several provisions that resulted in adjustments to the SNF PPS. We
described these provisions in detail in the final rule for FY 2002 (66
FR 39562, July 31, 2001). In particular:
Section 203 of the BIPA exempted CAH swing beds from the
SNF PPS. We included further information on this provision in Program
Memorandum A-01-09 (Change Request 1509), issued January 16,
2001, which is available online at www.cms.gov/transmittals/downloads/a0109.pdf.
Section 311 of the BIPA revised the statutory update
formula for the SNF market basket, and also directed us to conduct a
study of alternative case-mix classification systems for the SNF PPS.
In 2006, we submitted a report to the Congress on this study, which is
available online at www.cms.gov/SNFPPS/Downloads/RC_2006_PC-PPSSNF.pdf.
Section 312 of the BIPA provided for a temporary increase
of 16.66 percent in the nursing component of the case-mix adjusted
Federal rate for services furnished on or after April 1, 2001, and
before October 1, 2002; accordingly, this add-on is no longer in
effect. This section also directed the Government Accountability Office
(GAO) to conduct an audit of SNF nursing staff ratios and submit a
report to the Congress on whether the temporary increase in the nursing
component should be continued. The report (GAO-03-176), which GAO
issued in November 2002, is available online at www.gao.gov/new.items/d03176.pdf.
Section 313 of the BIPA repealed the consolidated billing
requirement for services (other than physical therapy, occupational
therapy, and speech-language pathology services) furnished to SNF
residents during noncovered stays, effective January 1, 2001. (A more
detailed discussion of this provision appears in section VI. of this
notice.)
Section 314 of the BIPA corrected an anomaly involving
three of the RUGs that section 101(a) of the BBRA had designated to
receive the temporary payment adjustment discussed above in section
I.C. of this notice. (As noted previously, in accordance with section
101(c)(2) of the BBRA, this temporary payment adjustment expired upon
the implementation of case-mix refinements on January 1, 2006.)
Section 315 of the BIPA authorized us to establish a
geographic reclassification procedure that is specific to SNFs, but
only after collecting the data necessary to establish a SNF wage index
that is based on wage data from nursing homes. To date, this has proven
to be unfeasible due to the volatility of existing SNF wage data and
the significant amount of resources that would be required to improve
the quality of that data.
We included further information on several of the BIPA provisions
in Program Memorandum A-01-08 (Change Request 1510), issued
January 16, 2001, which is available online at www.cms.gov/transmittals/downloads/a0108.pdf.
E. The Medicare Prescription Drug, Improvement, and Modernization Act
of 2003 (MMA)
The MMA (Pub. L. 108-173, enacted on December 8, 2003) included a
provision that resulted in a further adjustment to the SNF PPS.
Specifically, section 511 of the MMA amended section 1888(e)(12) of the
Act, to provide for a temporary increase of 128 percent in the PPS per
diem payment for any SNF residents with Acquired Immune Deficiency
Syndrome (AIDS), effective with services furnished on or after October
1, 2004. This special AIDS add-on was to remain in effect until ``* * *
the Secretary certifies that there is an appropriate adjustment in the
case mix * * * to compensate for the increased costs associated with
[such] residents * * *.'' The AIDS add-on is also discussed in Program
Transmittal 160 (Change Request 3291), issued on
April 30, 2004, which is available online at www.cms.gov/transmittals/downloads/r160cp.pdf. In the SNF PPS final rule for FY 2010 (74 FR
40288, August 11, 2009), we did not address the certification of the
AIDS add-on in that final rule's implementation of the case-mix
refinements for RUG-IV, thus allowing the temporary add-on payment
created by section 511 of the MMA to remain in effect.
For the limited number of SNF residents that qualify for the AIDS
add-on, implementation of this provision results in a significant
increase in payment. For example, using FY 2010 data, we identified
less than 3,800 SNF residents with a diagnosis code of 042 (Human
Immunodeficiency Virus (HIV) Infection). For FY 2013, an urban facility
with a resident with AIDS in RUG-IV group ``HC2'' would have a case-mix
adjusted payment of $408.88 (see Table 4) before the application of the
MMA adjustment. After an increase of 128 percent, this urban facility
would receive a case-mix adjusted payment of approximately $932.25.
In addition, section 410 of the MMA contained a provision that
excluded from consolidated billing certain services furnished to SNF
residents by rural health clinics (RHCs) and Federally Qualified Health
Centers (FQHCs). (Further information on this provision appears in
section VI. of this notice.)
F. The Affordable Care Act
On March 23, 2010, the Patient Protection and Affordable Care Act,
Pub. L. 111-148, was enacted. Following the enactment of Public Law
111-148, the Health Care and Education Reconciliation Act of 2010 (Pub.
L. 111-
[[Page 46217]]
152, enacted on March 30, 2010) amended certain provisions of Public
Law 111-148 and certain sections of the statute and, in certain
instances, included ``freestanding'' provisions (Pub. L. 111-148 and
Pub. L. 111-152 are collectively referred to in this notice as the
``Affordable Care Act''). Section 10325 of the Affordable Care Act
included a provision involving the SNF PPS. Section 10325 of the
Affordable Care Act postponed the implementation of the RUG-IV case-mix
classification system published in the FY 2010 SNF PPS final rule (74
FR 40288, August 11, 2009), requiring that the Secretary not implement
the RUG-IV case-mix classification system before October 1, 2011.
Notwithstanding this postponement of overall RUG-IV implementation,
section 10325 of the Affordable Care Act further specified that the
Secretary implement, effective October 1 2010, the changes related to
concurrent therapy and the look-back period that were finalized as
components of RUG-IV (see 74 FR 40315-19, 40322-24, August 11, 2009).
As we noted in the FY 2011 SNF PPS notice with comment period (75 FR
42889), implementing the particular combination of RUG-III and RUG-IV
features specified in section 10325 of the Affordable Care Act would
require developing a revised grouper, something that could not be
accomplished by that provision's effective date (October 1, 2010)
without risking serious disruption to providers, suppliers, and State
agencies. Accordingly, in the FY 2011 notice with comment period (75 FR
42889), we announced our intention to proceed on an interim basis with
implementation of the full RUG-IV case-mix classification system as of
October 1, 2010, followed by a retroactive claims adjustment, using a
hybrid RUG-III (HR-III) system reflecting the Affordable Care Act
configuration, once we had developed a revised grouper that could
accommodate it.
However, section 202 of the Medicare and Medicaid Extenders Act of
2010 (Pub. L. 111-309, enacted on December 15, 2010) subsequently
repealed section 10325 of the Affordable Care Act. We have, therefore,
left in place permanently the implementation of the full RUG-IV system
as of FY 2011, as finalized in the FY 2010 SNF PPS final rule (74 FR
40288). In addition, we note that implementation of version 3.0 of the
Minimum Data Set (MDS 3.0) proceeded as originally scheduled, with an
effective date of October 1, 2010. The MDS 3.0 RAI Manual and MDS 3.0
Item Set are published on the MDS 3.0 Training Materials Web site, at
http://www.cms.gov/Medicare/Quality-Initiatives-Patient-Assessment-Instruments/NursingHomeQualityInits/MDS30RAIManual.html. Accordingly,
as discussed above, effective October 1, 2010, we implemented and began
paying claims under the RUG-IV system that was finalized in the FY 2010
SNF PPS final rule.
We note that a parity adjustment was applied to the RUG-53 nursing
case-mix weights when the RUG-III system was initially refined in 2006,
in order to ensure that the implementation of the refinements would not
cause any change in overall payment levels (70 FR 45031, August 4,
2005). Similarly, a parity adjustment was applied to the RUG-IV nursing
case-mix weights for FY 2011 when the new classification system was
implemented. A detailed discussion of the parity adjustment in the
specific context of the RUG-IV payment rates appears in the FY 2010 SNF
PPS proposed rule (74 FR 22236-38, May 12, 2009) and final rule (74 FR
40338-40339, August 11, 2009), and in the FY 2011 notice with comment
period (75 FR 42892-42893).
For FY 2012, the RUG-IV parity adjustment was recalibrated in order
to restore the intended parity in overall payments between the RUG-IV
and RUG-53 case mix classification systems, as discussed in the FY 2012
SNF PPS proposed rule (76 FR 26370-26373, May 6, 2011) and final rule
(76 FR 48492-48500, 48537-48538 August 8, 2011).
G. Skilled Nursing Facility Prospective Payment--General Overview
We implemented the Medicare SNF PPS effective with cost reporting
periods beginning on or after July 1, 1998. This methodology uses
prospective, case-mix adjusted per diem payment rates applicable to all
covered SNF services. These payment rates cover all costs of furnishing
covered SNF services (routine, ancillary, and capital-related costs)
other than costs associated with approved educational activities and
bad debts. Covered SNF services include post-hospital services for
which benefits are provided under Part A, as well as those items and
services (other than physician and certain other services specifically
excluded under the BBA) which, before July 1, 1998, had been paid under
Part B but furnished to Medicare beneficiaries in a SNF during a
covered Part A stay. A comprehensive discussion of these provisions
appears in the May 12, 1998 interim final rule (63 FR 26252).
1. Payment Provisions--Federal Rate
The PPS uses per diem Federal payment rates based on mean SNF costs
in a base year (FY 1995) updated for inflation to the first effective
period of the PPS. We developed the Federal payment rates using
allowable costs from hospital-based and freestanding SNF cost reports
for reporting periods beginning in FY 1995. The data used in developing
the Federal rates also incorporated an estimate of the amounts that
would be payable under Part B for covered SNF services furnished to
individuals during the course of a covered Part A stay in a SNF.
In developing the rates for the initial period, we updated costs to
the first effective year of the PPS (the 15-month period beginning July
1, 1998) using a SNF market basket index, and then standardized for the
costs of facility differences in case mix and for geographic variations
in wages. In compiling the database used to compute the Federal payment
rates, we excluded those providers that received new provider
exemptions from the routine cost limits, as well as costs related to
payments for exceptions to the routine cost limits. Using the formula
that the BBA prescribed, we set the Federal rates at a level equal to
the weighted mean of freestanding costs plus 50 percent of the
difference between the freestanding mean and weighted mean of all SNF
costs (hospital-based and freestanding) combined. We computed and
applied separately the payment rates for facilities located in urban
and rural areas. In addition, we adjusted the portion of the Federal
rate attributable to wage-related costs by a wage index.
The Federal rate also incorporates adjustments to account for
facility case-mix, using a classification system that accounts for the
relative resource utilization of different patient types. The RUG-IV
classification system uses beneficiary assessment data from the MDS 3.0
completed by SNFs to assign beneficiaries to one of 66 RUG-IV groups.
The original RUG-III case-mix classification system used beneficiary
assessment data from the MDS, version 2.0 (MDS 2.0) completed by SNFs
to assign beneficiaries to one of 44 RUG-III groups. Then, under
incremental refinements that became effective on January 1, 2006, we
added nine new groups--comprising a new Rehabilitation plus Extensive
Services category--at the top of the RUG-III hierarchy. The May 12,
1998 interim final rule (63 FR 26252) included a detailed description
of the original 44-group RUG-III case-mix classification system. A
comprehensive description of
[[Page 46218]]
the refined RUG-53 system appeared in the proposed and final rules for
FY 2006 (70 FR 29070, May 19, 2005, and 70 FR 45026, August 4, 2005),
and a detailed description of the current 66-group RUG-IV system
appeared in the proposed and final rules for FY 2010 (74 FR 22208, May
12, 2009, and 74 FR 40288, August 11, 2009).
Further, in accordance with sections 1888(e)(4)(E)(ii)(IV) and
(e)(5) of the Act, the Federal rates in this notice reflect an update
to the rates that we published in the final rule for FY 2012 (76 FR
48486, August 8, 2011) and the associated correction notice (76 FR
59265, September 26, 2011), equal to the full change in the SNF market
basket index, adjusted by the forecast error correction, if applicable,
and the Multifactor Productivity (MFP) adjustment for FY 2013. A more
detailed discussion of the SNF market basket index and related issues
appears in sections II.G.2. and V. of this notice.
2. FY 2013 Rate Updates Using the Skilled Nursing Facility Market
Basket Index
Section 1888(e)(5) of the Act requires us to establish a SNF market
basket index that reflects changes over time in the prices of an
appropriate mix of goods and services included in covered SNF services.
We use the SNF market basket index, adjusted in the manner described
below, to update the Federal rates on an annual basis. In the SNF PPS
final rule for FY 2008 (72 FR 43425 through 43430, August 3, 2007), we
revised and rebased the market basket, which included updating the base
year from FY 1997 to FY 2004. The FY 2013 market basket increase is 2.5
percent, which is based on IHS Global Insight, Inc. (IGI) second
quarter 2012 forecast with historical data through first quarter 2012.
In addition, as explained in the final rule for FY 2004 (66 FR
46058, August 4, 2003) and in section V.B. of this notice, the annual
update of the payment rates includes, as appropriate, an adjustment to
account for market basket forecast error. As described in the final
rule for FY 2008, the threshold percentage that serves to trigger an
adjustment to account for market basket forecast error is 0.5
percentage point effective for FY 2008 and subsequent years. This
adjustment takes into account the forecast error from the most recently
available FY for which there is final data, and applies whenever the
difference between the forecasted and actual change in the market
basket exceeds a 0.5 percentage point threshold. For FY 2011 (the most
recently available FY for which there is final data), the estimated
increase in the market basket index was 2.3 percentage points, while
the actual increase was 2.2 percentage points, resulting in the actual
increase being 0.1 percentage point lower than the estimated increase.
Accordingly, as the difference between the estimated and actual amount
of change does not exceed the 0.5 percentage point threshold, the
payment rates for FY 2013 do not include a forecast error adjustment.
As we stated in the final rule for FY 2004 that first promulgated the
forecast error adjustment (68 FR 46058, August 4, 2003), the adjustment
will ``* * * reflect both upward and downward adjustments, as
appropriate.'' Table 1 shows the forecasted and actual market basket
amounts for FY 2011.
Table 1--Difference Between the Forecasted and Actual Market Basket Increases for FY 2011
----------------------------------------------------------------------------------------------------------------
Forecasted FY
Index 2011 increase Actual FY 2011 FY 2011
* increase ** difference
----------------------------------------------------------------------------------------------------------------
SNF.......................................................... 2.3 2.2 -0.1
----------------------------------------------------------------------------------------------------------------
* Published in Federal Register; based on second quarter 2010 IGI forecast (2004-based index).
** Based on the second quarter 2012 IGI forecast, with historical data through the first quarter 2012 (2004-
based index).
Furthermore, effective FY 2012, as required by section 3401(b) of
the Affordable Care Act, the market basket percentage is reduced by a
productivity adjustment equal to ``the 10-year moving average of
changes in annual economy-wide private nonfarm business multi-factor
productivity (as projected by the Secretary for the 10-year period
ending with the applicable fiscal year, year, cost-reporting period or
other annual period)'' (the MFP adjustment). As discussed in greater
detail in section V.C of this notice, the MFP adjustment for FY 2013 is
0.7 percent.
III. FY 2013 Annual Update of Payment Rates Under the Prospective
Payment System for Skilled Nursing Facilities
A. Federal Prospective Payment System
This notice sets forth a schedule of Federal prospective payment
rates applicable to Medicare Part A SNF services beginning October 1,
2012. The schedule incorporates per diem Federal rates that provide
Part A payment for almost all costs of services furnished to a
beneficiary in a SNF during a Part A Medicare-covered stay.
1. Costs and Services Covered by the Federal Rates
In accordance with section 1888(e)(2)(B) of the Act, the Federal
rates apply to all costs (routine, ancillary, and capital-related) of
covered SNF services other than costs associated with approved
educational activities as defined in Sec. 413.85. Under section
1888(e)(2)(A)(i) of the Act, covered SNF services include post-hospital
SNF services for which benefits are provided under Part A (the hospital
insurance program), as well as all items and services (other than those
services excluded by statute) that, before July 1, 1998, were paid
under Part B (the supplementary medical insurance program) but
furnished to Medicare beneficiaries in a SNF during a Part A covered
stay. (These excluded service categories are discussed in greater
detail in section V.B.2 of the May 12, 1998 interim final rule (63 FR
26295 through 26297)).
2. Methodology Used for the Calculation of the Federal Rates
The FY 2013 rates reflect an update using the latest market basket
index, reduced by the MFP adjustment. The FY 2013 market basket
increase factor is 2.5 percent, which as discussed in section V.C of
this notice, is reduced by a 0.7 percent MFP adjustment. A complete
description of the multi-step process used to calculate Federal rates
initially appeared in the May 12, 1998 interim final rule (63 FR
26252), as further revised in subsequent rules. As explained above in
section II.C of this notice, under section 101(c)(2) of the BBRA, the
previous temporary increases in the per diem adjusted payment rates for
certain designated RUGs (as specified in section 101(a) of the BBRA and
section 314 of the BIPA) are no longer in effect due to the
implementation of case-mix refinements as of January 1, 2006. However,
the
[[Page 46219]]
temporary increase of 128 percent in the per diem adjusted payment
rates for SNF residents with AIDS, enacted by section 511 of the MMA,
remains in effect.
We used the SNF market basket to adjust each per diem component of
the Federal rates forward to reflect cost increases occurring between
the midpoint of the Federal FY beginning October 1, 2011, and ending
September 30, 2012, and the midpoint of the Federal FY beginning
October 1, 2012, and ending September 30, 2013, to which the payment
rates apply. In accordance with sections 1888(e)(4)(E)(ii)(IV) and
(e)(5) of the Act, we update the payment rates for FY 2013 by a factor
equal to the market basket index percentage change, as discussed in
sections II.G.2 and V. of this notice. As further explained in sections
II.G.2 and V. of this notice, as applicable, we adjust the market
basket index by the forecast error from the most recently available FY
for which there is final data and apply this adjustment whenever the
difference between the forecasted and actual change in the market
basket exceeds a 0.5 percentage point threshold. In addition, as
further explained in sections II.G.2 and V. of this notice, effective
FY 2012 and each subsequent fiscal year, we are required to reduce the
market basket percentage by the MFP adjustment. We further adjust the
rates by a wage index budget neutrality factor, described later in this
section. Tables 2 and 3 reflect the updated components of the
unadjusted Federal rates for FY 2013, prior to adjustment for case-mix.
Table 2--FY 2013 Unadjusted Federal Rate Per Diem Urban
----------------------------------------------------------------------------------------------------------------
Nursing-- case- Therapy-- case- Therapy-- Non-
Rate component mix mix case-mix Non-case-mix
----------------------------------------------------------------------------------------------------------------
Per Diem Amount............................. $163.58 $123.22 $16.23 $83.48
----------------------------------------------------------------------------------------------------------------
Table 3--FY 2013 Unadjusted Federal Rate Per Diem Rural
----------------------------------------------------------------------------------------------------------------
Nursing-- case- Therapy-- case- Therapy-- non-
Rate component mix mix case-mix Non-case-mix
----------------------------------------------------------------------------------------------------------------
Per Diem Amount............................. $156.28 $142.08 $17.33 $85.03
----------------------------------------------------------------------------------------------------------------
B. Case-Mix Adjustments
1. Background
Section 1888(e)(4)(G)(i) of the Act requires the Secretary to make
an adjustment to account for case mix. The statute specifies that the
adjustment is to reflect both a resident classification system that the
Secretary establishes to account for the relative resource use of
different patient types, as well as resident assessment and other data
that the Secretary considers appropriate. In first implementing the SNF
PPS (63 FR 26252, May 12, 1998), we developed the RUG-III case-mix
classification system, which tied the amount of payment to resident
resource use in combination with resident characteristic information.
Staff time measurement (STM) studies conducted in 1990, 1995, and 1997
provided information on resource use (time spent by staff members on
residents) and resident characteristics that enabled us not only to
establish RUG-III, but also to create case-mix indexes (CMIs).
Although the establishment of the SNF PPS did not change Medicare's
fundamental requirements for SNF coverage, there is a correlation
between level of care and provider payment. One of the elements
affecting the SNF PPS per diem rates is the case-mix adjustment derived
from a classification system based on comprehensive resident
assessments using the MDS. Case-mix classification is based, in part,
on the beneficiary's need for skilled nursing care and therapy. The
case-mix classification system uses clinical data from the MDS, and
wage-adjusted staff time measurement data, to assign a case-mix group
to each patient record that is then used to calculate a per diem
payment under the SNF PPS. Because the MDS is used as basis for payment
as well as a clinical document, we have provided extensive training on
proper coding and the time frames for MDS completion in our Resident
Assessment Instrument (RAI) Manual. For an MDS to be considered valid
for use in determining payment, the MDS assessment must be completed in
compliance with the instructions in the RAI Manual in effect at the
time the assessment is completed. For payment and quality monitoring
purposes, the RAI Manual consists of both the Manual instructions and
the interpretive guidance and policy clarifications posted on the
appropriate MDS Web site at http://www.cms.gov/Medicare/Quality-Initiatives-Patient-Assessment-Instruments/NursingHomeQualityInits/MDS30RAIManual.html.
The original RUG-III grouper logic was based on clinical data
collected in 1990, 1995, and 1997. As discussed in the SNF PPS proposed
rule for FY 2010 (74 FR 22208, May 12, 2009), we subsequently conducted
a multi-year data collection and analysis under the Staff Time and
Resource Intensity Verification (STRIVE) project to update the case-mix
classification system for FY 2011. The resulting RUG-IV case-mix
classification system reflected the data collected in 2006-2007 during
the STRIVE project, and was finalized in the FY 2010 SNF PPS final rule
(74 FR 40288, August 11, 2009) to take effect in FY 2011 concurrently
with an updated new resident assessment instrument, the MDS 3.0, which
collects the clinical data used for case-mix classification under RUG-
IV.
Under the BBA, each update of the SNF PPS payment rates must
include the case-mix classification methodology applicable for the
coming Federal FY. As indicated in section II.G of this notice, the
payment rates set forth herein reflect the use of the RUG-IV case-mix
classification system from October 1, 2012, through September 30, 2013.
We list the case-mix adjusted RUG-IV payment rates, provided
separately for urban and rural SNFs, in Tables 4 and 5 with
corresponding case-mix values. These tables do not reflect the AIDS
add-on enacted by section 511 of the MMA, which we apply only after
making all other adjustments (such as wage and case-mix).
[[Page 46220]]
Table 4--RUG-IV Case-Mix Adjusted Federal Rates and Associated Indexes Urban
--------------------------------------------------------------------------------------------------------------------------------------------------------
Non-case Non-case
RUG-IV category Nursing Therapy Nursing Therapy mix therapy mix Total rate
index index component component comp component
--------------------------------------------------------------------------------------------------------------------------------------------------------
RUX.......................................................... 2.67 1.87 $436.76 $230.42 ........... $83.48 $750.66
RUL.......................................................... 2.57 1.87 420.40 230.42 ........... 83.48 734.30
RVX.......................................................... 2.61 1.28 426.94 157.72 ........... 83.48 668.14
RVL.......................................................... 2.19 1.28 358.24 157.72 ........... 83.48 599.44
RHX.......................................................... 2.55 0.85 417.13 104.74 ........... 83.48 605.35
RHL.......................................................... 2.15 0.85 351.70 104.74 ........... 83.48 539.92
RMX.......................................................... 2.47 0.55 404.04 67.77 ........... 83.48 555.29
RML.......................................................... 2.19 0.55 358.24 67.77 ........... 83.48 509.49
RLX.......................................................... 2.26 0.28 369.69 34.50 ........... 83.48 487.67
RUC.......................................................... 1.56 1.87 255.18 230.42 ........... 83.48 569.08
RUB.......................................................... 1.56 1.87 255.18 230.42 ........... 83.48 569.08
RUA.......................................................... 0.99 1.87 161.94 230.42 ........... 83.48 475.84
RVC.......................................................... 1.51 1.28 247.01 157.72 ........... 83.48 488.21
RVB.......................................................... 1.11 1.28 181.57 157.72 ........... 83.48 422.77
RVA.......................................................... 1.10 1.28 179.94 157.72 ........... 83.48 421.14
RHC.......................................................... 1.45 0.85 237.19 104.74 ........... 83.48 425.41
RHB.......................................................... 1.19 0.85 194.66 104.74 ........... 83.48 382.88
RHA.......................................................... 0.91 0.85 148.86 104.74 ........... 83.48 337.08
RMC.......................................................... 1.36 0.55 222.47 67.77 ........... 83.48 373.72
RMB.......................................................... 1.22 0.55 199.57 67.77 ........... 83.48 350.82
RMA.......................................................... 0.84 0.55 137.41 67.77 ........... 83.48 288.66
RLB.......................................................... 1.50 0.28 245.37 34.50 ........... 83.48 363.35
RLA.......................................................... 0.71 0.28 116.14 34.50 ........... 83.48 234.12
ES3.......................................................... 3.58 ........... 585.62 ........... 16.23 83.48 685.33
ES2.......................................................... 2.67 ........... 436.76 ........... 16.23 83.48 536.47
ES1.......................................................... 2.32 ........... 379.51 ........... 16.23 83.48 479.22
HE2.......................................................... 2.22 ........... 363.15 ........... 16.23 83.48 462.86
HE1.......................................................... 1.74 ........... 284.63 ........... 16.23 83.48 384.34
HD2.......................................................... 2.04 ........... 333.70 ........... 16.23 83.48 433.41
HD1.......................................................... 1.60 ........... 261.73 ........... 16.23 83.48 361.44
HC2.......................................................... 1.89 ........... 309.17 ........... 16.23 83.48 408.88
HC1.......................................................... 1.48 ........... 242.10 ........... 16.23 83.48 341.81
HB2.......................................................... 1.86 ........... 304.26 ........... 16.23 83.48 403.97
HB1.......................................................... 1.46 ........... 238.83 ........... 16.23 83.48 338.54
LE2.......................................................... 1.96 ........... 320.62 ........... 16.23 83.48 420.33
LE1.......................................................... 1.54 ........... 251.91 ........... 16.23 83.48 351.62
LD2.......................................................... 1.86 ........... 304.26 ........... 16.23 83.48 403.97
LD1.......................................................... 1.46 ........... 238.83 ........... 16.23 83.48 338.54
LC2.......................................................... 1.56 ........... 255.18 ........... 16.23 83.48 354.89
LC1.......................................................... 1.22 ........... 199.57 ........... 16.23 83.48 299.28
LB2.......................................................... 1.45 ........... 237.19 ........... 16.23 83.48 336.90
LB1.......................................................... 1.14 ........... 186.48 ........... 16.23 83.48 286.19
CE2.......................................................... 1.68 ........... 274.81 ........... 16.23 83.48 374.52
CE1.......................................................... 1.50 ........... 245.37 ........... 16.23 83.48 345.08
CD2.......................................................... 1.56 ........... 255.18 ........... 16.23 83.48 354.89
CD1.......................................................... 1.38 ........... 225.74 ........... 16.23 83.48 325.45
CC2.......................................................... 1.29 ........... 211.02 ........... 16.23 83.48 310.73
CC1.......................................................... 1.15 ........... 188.12 ........... 16.23 83.48 287.83
CB2.......................................................... 1.15 ........... 188.12 ........... 16.23 83.48 287.83
CB1.......................................................... 1.02 ........... 166.85 ........... 16.23 83.48 266.56
CA2.......................................................... 0.88 ........... 143.95 ........... 16.23 83.48 243.66
CA1.......................................................... 0.78 ........... 127.59 ........... 16.23 83.48 227.30
BB2.......................................................... 0.97 ........... 158.67 ........... 16.23 83.48 258.38
BB1.......................................................... 0.90 ........... 147.22 ........... 16.23 83.48 246.93
BA2.......................................................... 0.70 ........... 114.51 ........... 16.23 83.48 214.22
BA1.......................................................... 0.64 ........... 104.69 ........... 16.23 83.48 204.40
PE2.......................................................... 1.50 ........... 245.37 ........... 16.23 83.48 345.08
PE1.......................................................... 1.40 ........... 229.01 ........... 16.23 83.48 328.72
PD2.......................................................... 1.38 ........... 225.74 ........... 16.23 83.48 325.45
PD1.......................................................... 1.28 ........... 209.38 ........... 16.23 83.48 309.09
PC2.......................................................... 1.10 ........... 179.94 ........... 16.23 83.48 279.65
PC1.......................................................... 1.02 ........... 166.85 ........... 16.23 83.48 266.56
PB2.......................................................... 0.84 ........... 137.41 ........... 16.23 83.48 237.12
PB1.......................................................... 0.78 ........... 127.59 ........... 16.23 83.48 227.30
PA2.......................................................... 0.59 ........... 96.51 ........... 16.23 83.48 196.22
PA1.......................................................... 0.54 ........... 88.33 ........... 16.23 83.48 188.04
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 46221]]
Table 5--RUG-IV Case-Mix Adjusted Federal Rates and Associated Indexes Rural
--------------------------------------------------------------------------------------------------------------------------------------------------------
Non-case Non-case
RUG-IV category Nursing Therapy Nursing Therapy mix therapy mix Total rate
index index component component comp component
--------------------------------------------------------------------------------------------------------------------------------------------------------
RUX.......................................................... 2.67 1.87 $417.27 $265.69 ........... $85.03 $767.99
RUL.......................................................... 2.57 1.87 401.64 265.69 ........... 85.03 752.36
RVX.......................................................... 2.61 1.28 407.89 181.86 ........... 85.03 674.78
RVL.......................................................... 2.19 1.28 342.25 181.86 ........... 85.03 609.14
RHX.......................................................... 2.55 0.85 398.51 120.77 ........... 85.03 604.31
RHL.......................................................... 2.15 0.85 336.00 120.77 ........... 85.03 541.80
RMX.......................................................... 2.47 0.55 386.01 78.14 ........... 85.03 549.18
RML.......................................................... 2.19 0.55 342.25 78.14 ........... 85.03 505.42
RLX.......................................................... 2.26 0.28 353.19 39.78 ........... 85.03 478.00
RUC.......................................................... 1.56 1.87 243.80 265.69 ........... 85.03 594.52
RUB.......................................................... 1.56 1.87 243.80 265.69 ........... 85.03 594.52
RUA.......................................................... 0.99 1.87 154.72 265.69 ........... 85.03 505.44
RVC.......................................................... 1.51 1.28 235.98 181.86 ........... 85.03 502.87
RVB.......................................................... 1.11 1.28 173.47 181.86 ........... 85.03 440.36
RVA.......................................................... 1.10 1.28 171.91 181.86 ........... 85.03 438.80
RHC.......................................................... 1.45 0.85 226.61 120.77 ........... 85.03 432.41
RHB.......................................................... 1.19 0.85 185.97 120.77 ........... 85.03 391.77
RHA.......................................................... 0.91 0.85 142.21 120.77 ........... 85.03 348.01
RMC.......................................................... 1.36 0.55 212.54 78.14 ........... 85.03 375.71
RMB.......................................................... 1.22 0.55 190.66 78.14 ........... 85.03 353.83
RMA.......................................................... 0.84 0.55 131.28 78.14 ........... 85.03 294.45
RLB.......................................................... 1.50 0.28 234.42 39.78 ........... 85.03 359.23
RLA.......................................................... 0.71 0.28 110.96 39.78 ........... 85.03 235.77
ES3.......................................................... 3.58 ........... 559.48 ........... 17.33 85.03 661.84
ES2.......................................................... 2.67 ........... 417.27 ........... 17.33 85.03 519.63
ES1.......................................................... 2.32 ........... 362.57 ........... 17.33 85.03 464.93
HE2.......................................................... 2.22 ........... 346.94 ........... 17.33 85.03 449.30
HE1.......................................................... 1.74 ........... 271.93 ........... 17.33 85.03 374.29
HD2.......................................................... 2.04 ........... 318.81 ........... 17.33 85.03 421.17
HD1.......................................................... 1.60 ........... 250.05 ........... 17.33 85.03 352.41
HC2.......................................................... 1.89 ........... 295.37 ........... 17.33 85.03 397.73
HC1.......................................................... 1.48 ........... 231.29 ........... 17.33 85.03 333.65
HB2.......................................................... 1.86 ........... 290.68 ........... 17.33 85.03 393.04
HB1.......................................................... 1.46 ........... 228.17 ........... 17.33 85.03 330.53
LE2.......................................................... 1.96 ........... 306.31 ........... 17.33 85.03 408.67
LE1.......................................................... 1.54 ........... 240.67 ........... 17.33 85.03 343.03
LD2.......................................................... 1.86 ........... 290.68 ........... 17.33 85.03 393.04
LD1.......................................................... 1.46 ........... 228.17 ........... 17.33 85.03 330.53
LC2.......................................................... 1.56 ........... 243.80 ........... 17.33 85.03 346.16
LC1.......................................................... 1.22 ........... 190.66 ........... 17.33 85.03 293.02
LB2.......................................................... 1.45 ........... 226.61 ........... 17.33 85.03 328.97
LB1.......................................................... 1.14 ........... 178.16 ........... 17.33 85.03 280.52
CE2.......................................................... 1.68 ........... 262.55 ........... 17.33 85.03 364.91
CE1.......................................................... 1.50 ........... 234.42 ........... 17.33 85.03 336.78
CD2.......................................................... 1.56 ........... 243.80 ........... 17.33 85.03 346.16
CD1.......................................................... 1.38 ........... 215.67 ........... 17.33 85.03 318.03
CC2.......................................................... 1.29 ........... 201.60 ........... 17.33 85.03 303.96
CC1.......................................................... 1.15 ........... 179.72 ........... 17.33 85.03 282.08
CB2.......................................................... 1.15 ........... 179.72 ........... 17.33 85.03 282.08
CB1.......................................................... 1.02 ........... 159.41 ........... 17.33 85.03 261.77
CA2.......................................................... 0.88 ........... 137.53 ........... 17.33 85.03 239.89
CA1.......................................................... 0.78 ........... 121.90 ........... 17.33 85.03 224.26
BB2.......................................................... 0.97 ........... 151.59 ........... 17.33 85.03 253.95
BB1.......................................................... 0.90 ........... 140.65 ........... 17.33 85.03 243.01
BA2.......................................................... 0.70 ........... 109.40 ........... 17.33 85.03 211.76
BA1.......................................................... 0.64 ........... 100.02 ........... 17.33 85.03 202.38
PE2.......................................................... 1.50 ........... 234.42 ........... 17.33 85.03 336.78
PE1.......................................................... 1.40 ........... 218.79 ........... 17.33 85.03 321.15
PD2.......................................................... 1.38 ........... 215.67 ........... 17.33 85.03 318.03
PD1.......................................................... 1.28 ........... 200.04 ........... 17.33 85.03 302.40
PC2.......................................................... 1.10 ........... 171.91 ........... 17.33 85.03 274.27
PC1.......................................................... 1.02 ........... 159.41 ........... 17.33 85.03 261.77
PB2.......................................................... 0.84 ........... 131.28 ........... 17.33 85.03 233.64
PB1.......................................................... 0.78 ........... 121.90 ........... 17.33 85.03 224.26
PA2.......................................................... 0.59 ........... 92.21 ........... 17.33 85.03 194.57
PA1.......................................................... 0.54 ........... 84.39 ........... 17.33 85.03 186.75
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 46222]]
C. Wage Index Adjustment to Federal Rates
Section 1888(e)(4)(G)(ii) of the Act requires that we adjust the
Federal rates to account for differences in area wage levels, using a
wage index that we find appropriate. Since the inception of a PPS for
SNFs, we have used hospital wage data in developing a wage index to be
applied to SNFs. We are maintaining that practice for FY 2013, as we
continue to believe that in the absence of SNF-specific wage data,
using the hospital inpatient wage index is appropriate and reasonable
for the SNF PPS. As explained in the update notice for FY 2005 (69 FR
45786, July 30, 2004), the SNF PPS does not use the hospital area wage
index's occupational mix adjustment, as this adjustment serves
specifically to define the occupational categories more clearly in a
hospital setting; moreover, the collection of the occupational wage
data also excludes any wage data related to SNFs. Therefore, we believe
that using the updated wage data exclusive of the occupational mix
adjustment continues to be appropriate for SNF payments.
Finally, we continue to use the same methodology discussed in the
SNF PPS final rule for FY 2008 (72 FR 43423) to address those
geographic areas in which there are no hospitals and, thus, no hospital
wage index data on which to base the calculation of the FY 2013 SNF PPS
wage index. For rural geographic areas that do not have hospitals and,
therefore, lack hospital wage data on which to base an area wage
adjustment, we use the average wage index from all contiguous Core-
Based Statistical Areas (CBSAs) as a reasonable proxy. For FY 2013,
there are no rural geographic areas that do not have hospitals, and
thus this methodology will not be applied. For rural Puerto Rico, we do
not apply this methodology due to the distinct economic circumstances
that exist there, but instead continue using the most recent wage index
previously available for that area. For urban areas without specific
hospital wage index data, we use the average wage indexes of all of the
urban areas within the State to serve as a reasonable proxy for the
wage index of that urban CBSA. For FY 2013, the only urban area without
wage index data available is CBSA 25980, Hinesville-Fort Stewart, GA.
To calculate the SNF PPS wage index adjustment, we apply the wage
index adjustment to the labor-related portion of the Federal rate,
which is 68.383 percent of the total rate. This percentage reflects the
labor-related relative importance for FY 2013, using the revised and
rebased FY 2004-based market basket. The labor-related relative
importance for FY 2012 was 68.693, as shown in Table 13. We calculate
the labor-related relative importance from the SNF market basket, and
it approximates the labor-related portion of the total costs after
taking into account historical and projected price changes between the
base year and FY 2013. The price proxies that move the different cost
categories in the market basket do not necessarily change at the same
rate, and the relative importance captures these changes. Accordingly,
the relative importance figure more closely reflects the cost share
weights for FY 2013 than the base year weights from the SNF market
basket.
We calculate the labor-related relative importance for FY 2013 in
four steps. First, we compute the FY 2013 price index level for the
total market basket and each cost category of the market basket.
Second, we calculate a ratio for each cost category by dividing the FY
2013 price index level for that cost category by the total market
basket price index level. Third, we determine the FY 2013 relative
importance for each cost category by multiplying this ratio by the base
year (FY 2004) weight. Finally, we add the FY 2013 relative importance
for each of the labor-related cost categories (wages and salaries,
employee benefits, non-medical professional fees, labor-intensive
services, and a portion of capital-related expenses) to produce the FY
2013 labor-related relative importance. Tables 6 and 7 below show the
RUG-IV case-mix adjusted Federal rates by labor-related and non-labor-
related components.
Table 6--RUG-IV Case-Mix Adjusted Federal Rates for Urban SNFs by Labor
and Non-Labor Component
------------------------------------------------------------------------
Non-
RUG-IV category Total Labor labor
rate portion portion
------------------------------------------------------------------------
RUX....................................... $750.66 $513.32 $237.34
RUL....................................... 734.30 502.14 232.16
RVX....................................... 668.14 456.89 211.25
RVL....................................... 599.44 409.92 189.52
RHX....................................... 605.35 413.96 191.39
RHL....................................... 539.92 369.21 170.71
RMX....................................... 555.29 379.72 175.57
RML....................................... 509.49 348.40 161.09
RLX....................................... 487.67 333.48 154.19
RUC....................................... 569.08 389.15 179.93
RUB....................................... 569.08 389.15 179.93
RUA....................................... 475.84 325.39 150.45
RVC....................................... 488.21 333.85 154.36
RVB....................................... 422.77 289.10 133.67
RVA....................................... 421.14 287.99 133.15
RHC....................................... 425.41 290.91 134.50
RHB....................................... 382.88 261.82 121.06
RHA....................................... 337.08 230.51 106.57
RMC....................................... 373.72 255.56 118.16
RMB....................................... 350.82 239.90 110.92
RMA....................................... 288.66 197.39 91.27
RLB....................................... 363.35 248.47 114.88
RLA....................................... 234.12 160.10 74.02
ES3....................................... 685.33 468.65 216.68
ES2....................................... 536.47 366.85 169.62
ES1....................................... 479.22 327.71 151.51
HE2....................................... 462.86 316.52 146.34
HE1....................................... 384.34 262.82 121.52
HD2....................................... 433.41 296.38 137.03
HD1....................................... 361.44 247.16 114.28
HC2....................................... 408.88 279.60 129.28
HC1....................................... 341.81 233.74 108.07
HB2....................................... 403.97 276.25 127.72
HB1....................................... 338.54 231.50 107.04
LE2....................................... 420.33 287.43 132.90
LE1....................................... 351.62 240.45 111.17
LD2....................................... 403.97 276.25 127.72
LD1....................................... 338.54 231.50 107.04
LC2....................................... 354.89 242.68 112.21
LC1....................................... 299.28 204.66 94.62
LB2....................................... 336.90 230.38 106.52
LB1....................................... 286.19 195.71 90.48
CE2....................................... 374.52 256.11 118.41
CE1....................................... 345.08 235.98 109.10
CD2....................................... 354.89 242.68 112.21
CD1....................................... 325.45 222.55 102.90
CC2....................................... 310.73 212.49 98.24
CC1....................................... 287.83 196.83 91.00
CB2....................................... 287.83 196.83 91.00
CB1....................................... 266.56 182.28 84.28
CA2....................................... 243.66 166.62 77.04
CA1....................................... 227.30 155.43 71.87
BB2....................................... 258.38 176.69 81.69
BB1....................................... 246.93 168.86 78.07
BA2....................................... 214.22 146.49 67.73
BA1....................................... 204.40 139.77 64.63
PE2....................................... 345.08 235.98 109.10
PE1....................................... 328.72 224.79 103.93
PD2....................................... 325.45 222.55 102.90
PD1....................................... 309.09 211.37 97.72
PC2....................................... 279.65 191.23 88.42
PC1....................................... 266.56 182.28 84.28
PB2....................................... 237.12 162.15 74.97
PB1....................................... 227.30 155.43 71.87
PA2....................................... 196.22 134.18 62.04
PA1....................................... 188.04 128.59 59.45
------------------------------------------------------------------------
Table 7--RUG-IV Case-Mix Adjusted Federal Rates for Rural SNFs by Labor
and Non-Labor Component
------------------------------------------------------------------------
Non-
RUG-IV category Total Labor labor
rate portion portion
------------------------------------------------------------------------
RUX....................................... $767.99 $525.17 $242.82
RUL....................................... 752.36 514.49 237.87
RVX....................................... 674.78 461.43 213.35
RVL....................................... 609.14 416.55 192.59
RHX....................................... 604.31 413.25 191.06
RHL....................................... 541.80 370.50 171.30
RMX....................................... 549.18 375.55 173.63
RML....................................... 505.42 345.62 159.80
[[Page 46223]]
RLX....................................... 478.00 326.87 151.13
RUC....................................... 594.52 406.55 187.97
RUB....................................... 594.52 406.55 187.97
RUA....................................... 505.44 345.64 159.80
RVC....................................... 502.87 343.88 158.99
RVB....................................... 440.36 301.13 139.23
RVA....................................... 438.80 300.06 138.74
RHC....................................... 432.41 295.69 136.72
RHB....................................... 391.77 267.90 123.87
RHA....................................... 348.01 237.98 110.03
RMC....................................... 375.71 256.92 118.79
RMB....................................... 353.83 241.96 111.87
RMA....................................... 294.45 201.35 93.10
RLB....................................... 359.23 245.65 113.58
RLA....................................... 235.77 161.23 74.54
ES3....................................... 661.84 452.59 209.25
ES2....................................... 519.63 355.34 164.29
ES1....................................... 464.93 317.93 147.00
HE2....................................... 449.30 307.24 142.06
HE1....................................... 374.29 255.95 118.34
HD2....................................... 421.17 288.01 133.16
HD1....................................... 352.41 240.99 111.42
HC2....................................... 397.73 271.98 125.75
HC1....................................... 333.65 228.16 105.49
HB2....................................... 393.04 268.77 124.27
HB1....................................... 330.53 226.03 104.50
LE2....................................... 408.67 279.46 129.21
LE1....................................... 343.03 234.57 108.46
LD2....................................... 393.04 268.77 124.27
LD1....................................... 330.53 226.03 104.50
LC2....................................... 346.16 236.71 109.45
LC1....................................... 293.02 200.38 92.64
LB2....................................... 328.97 224.96 104.01
LB1....................................... 280.52 191.83 88.69
CE2....................................... 364.91 249.54 115.37
CE1....................................... 336.78 230.30 106.48
CD2....................................... 346.16 236.71 109.45
CD1....................................... 318.03 217.48 100.55
CC2....................................... 303.96 207.86 96.10
CC1....................................... 282.08 192.89 89.19
CB2....................................... 282.08 192.89 89.19
CB1....................................... 261.77 179.01 82.76
CA2....................................... 239.89 164.04 75.85
CA1....................................... 224.26 153.36 70.90
BB2....................................... 253.95 173.66 80.29
BB1....................................... 243.01 166.18 76.83
BA2....................................... 211.76 144.81 66.95
BA1....................................... 202.38 138.39 63.99
PE2....................................... 336.78 230.30 106.48
PE1....................................... 321.15 219.61 101.54
PD2....................................... 318.03 217.48 100.55
PD1....................................... 302.40 206.79 95.61
PC2....................................... 274.27 187.55 86.72
PC1....................................... 261.77 179.01 82.76
PB2....................................... 233.64 159.77 73.87
PB1....................................... 224.26 153.36 70.90
PA2....................................... 194.57 133.05 61.52
PA1....................................... 186.75 127.71 59.04
------------------------------------------------------------------------
Section 1888(e)(4)(G)(ii) of the Act also requires that we apply
this wage index in a manner that does not result in aggregate payments
that are greater or less than would otherwise be made in the absence of
the wage adjustment. For FY 2013 (Federal rates effective October 1,
2012), we apply an adjustment to fulfill the budget neutrality
requirement. We meet this requirement by multiplying each of the
components of the unadjusted Federal rates by a budget neutrality
factor equal to the ratio of the weighted average wage adjustment
factor for FY 2012 to the weighted average wage adjustment factor for
FY 2013. For this calculation, we use the same 2011 claims utilization
data for both the numerator and denominator of this ratio. We define
the wage adjustment factor used in this calculation as the labor share
of the rate component multiplied by the wage index plus the non-labor
share of the rate component. The budget neutrality factor for this year
is 1.0004. The wage index applicable to FY 2013 is set forth in Tables
A and B, which appear in the Addendum of this notice, and is also
available on the CMS Web site at http://cms.gov/Medicare/Medicare-Fee-for-Service-Payment/SNFPPS/WageIndex.html.
In the SNF PPS final rule for FY 2006 (70 FR 45026, August 4,
2005), we adopted the changes discussed in the OMB Bulletin No. 03-04
(June 6, 2003), available online at www.whitehouse.gov/omb/bulletins/b03-04.html, which announced revised definitions for Metropolitan
Statistical Areas (MSAs), and the creation of Micropolitan Statistical
Areas and Combined Statistical Areas. In addition, OMB published
subsequent bulletins regarding CBSA changes, including changes in CBSA
numbers and titles. As indicated in the FY 2008 SNF PPS final rule (72
FR 43423, August 3, 2007), this and all subsequent SNF PPS rules and
notices are considered to incorporate the CBSA changes published in the
most recent OMB bulletin that applies to the hospital wage data used to
determine the current SNF PPS wage index. The OMB bulletins are
available online at http://www.whitehouse.gov/omb/bulletins/index.html.
In adopting the OMB CBSA geographic designations, we provided for a
1-year transition with a blended wage index for all providers. For FY
2006, the wage index for each provider consisted of a blend of 50
percent of the FY 2006 MSA-based wage index and 50 percent of the FY
2006 CBSA-based wage index (both using FY 2002 hospital data). We
referred to the blended wage index as the FY 2006 SNF PPS transition
wage index. As discussed in the SNF PPS final rule for FY 2006 (70 FR
45041), subsequent to the expiration of this 1-year transition on
September 30, 2006, we used the full CBSA-based wage index values, as
now presented in Tables A and B in the Addendum of this notice.
D. Updates to the Federal Rates
In accordance with section 1888(e)(4)(E) of the Act as amended by
section 311 of the BIPA, and section 1888(e)(5)(B) of the Act as
amended by section 3401(b) of the Affordable Care Act, the payment
rates in this notice reflect an update equal to the full SNF market
basket, estimated at 2.5 percentage points, reduced by the MFP
adjustment. As discussed in sections II.G.2 and V.C of this notice, the
annual update for FY 2013 includes a 0.7 percentage point reduction to
account for the MFP adjustment described in the latter section, for a
net update of 1.8 percent.
E. Relationship of Case-Mix Classification System to Existing Skilled
Nursing Facility Level-of-Care Criteria
As discussed in Sec. 413.345, we include in each update of the
Federal payment rates in the Federal Register the designation of those
specific RUGs under the classification system that represent the
required SNF level of care, as provided in Sec. 409.30. As set forth
in the FY 2011 SNF PPS update notice (75 FR 42910, July 22, 2010), this
designation reflects an administrative presumption under the 66-group
RUG-IV system that beneficiaries who are correctly assigned to one of
the upper 52 RUG-IV groups on the initial 5-day, Medicare-required
assessment are automatically classified as meeting the SNF level of
care definition up to and including the assessment reference date on
the 5-day Medicare-required assessment.
A beneficiary assigned to any of the lower 14 RUG-IV groups is not
automatically classified as either meeting or not meeting the
definition, but instead receives an individual level of care
determination using the existing administrative criteria. This
presumption recognizes the strong likelihood that beneficiaries
assigned to one of the upper 52 RUG-IV groups during the immediate
post-hospital period require a covered level of care, which would be
less likely for those beneficiaries assigned to one of the lower 14
RUG-IV groups.
In this notice, we continue to designate the upper 52 RUG-IV groups
for purposes of this administrative presumption, consisting of all
groups encompassed by the following RUG-IV categories:
Rehabilitation plus Extensive Services;
Ultra High Rehabilitation;
Very High Rehabilitation;
[[Page 46224]]
High Rehabilitation;
Medium Rehabilitation;
Low Rehabilitation;
Extensive Services;
Special Care High;
Special Care Low; and,
Clinically Complex.
However, we note that this administrative presumption policy does
not supersede the SNF's responsibility to ensure that its decisions
relating to level of care are appropriate and timely, including a
review to confirm that the services prompting the beneficiary's
assignment to one of the upper 52 RUG-IV groups (which, in turn, serves
to trigger the administrative presumption) are themselves medically
necessary. As we explained in the FY 2000 SNF PPS final rule (64 FR
41667, July 30, 1999), the administrative presumption:
* * * is itself rebuttable in those individual cases in which the
services actually received by the resident do not meet the basic
statutory criterion of being reasonable and necessary to diagnose or
treat a beneficiary's condition (according to section 1862(a)(1) of
the Act). Accordingly, the presumption would not apply, for example,
in those situations in which a resident's assignment to one of the
upper * * * groups is itself based on the receipt of services that
are subsequently determined to be not reasonable and necessary.
Moreover, we want to stress the importance of careful monitoring
for changes in each patient's condition to determine the continuing
need for Part A SNF benefits after the assessment reference date of the
5-day assessment.
F. Example of Computation of Adjusted PPS Rates and SNF Payment
Using the hypothetical SNF XYZ described below, Table 8 shows the
adjustments made to the Federal per diem rates to compute the
provider's actual per diem PPS payment under the described scenario.
SNF XYZ's 12-month cost reporting period begins October 1, 2012. As
illustrated in Table 8, SNF XYZ's total PPS payment would equal
$41,149.70. We derive the Labor and Non-labor columns from Table 6.
Table 8--RUG-IV SNF XYZ: Located in Cedar Rapids, IA (Urban CBSA 16300) Wage Index: 0.8944
--------------------------------------------------------------------------------------------------------------------------------------------------------
Adjusted Adjusted Percent Medicare
RUG-IV group Labor Wage index labor Non-labor rate adjustment days Payment
--------------------------------------------------------------------------------------------------------------------------------------------------------
RVX............................................. $456.89 0.8944 $408.64 $211.25 $619.89 $619.89 14 $8,678.46
ES2............................................. 366.85 0.8944 328.11 169.62 497.73 497.73 30 14,931.90
RHA............................................. 230.51 0.8944 206.17 106.57 312.74 312.74 16 5,003.84
CC2 *........................................... 212.49 0.8944 190.05 98.24 288.29 657.30 10 6,573.00
BA2............................................. 146.49 0.8944 131.02 67.73 198.75 198.75 30 5,962.50
-------------------------
........... ........... ........... ........... ........... ........... 100 41,149.70
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Reflects a 128 percent adjustment from section 511 of the MMA.
IV. Monitoring Impact of FY 2012 Policy Changes and Certain SNF
Practices
In the FY 2012 SNF PPS final rule, we stated we would monitor the
impact of certain FY 2012 policy changes on various aspects of the SNF
PPS (76 FR 48498, August 8, 2011). Specifically, we have been
monitoring the impact of the following FY 2012 policy changes:
Recalibration of the FY 2011 SNF parity adjustment to
align overall payments under RUG-IV with those under RUG-III.
Allocation of group therapy time to pay more appropriately
for group therapy services based on resource utilization and cost.
Implementation of changes to the MDS 3.0 patient
assessment instrument, most notably the introduction of the Change-of-
Therapy (COT) Other Medicare Required Assessment (OMRA).
We have posted quarterly memos to the SNF PPS Web site which
highlight some of the trends we have observed over a given time period.
These memos may be accessed through the SNF PPS Web site at the
following address: http://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/SNFPPS/Downloads/SNF_Monitoring.zip.
Below, we provide a summary of the initial results derived from
this monitoring effort.
A. RUG Distributions
As stated in the FY 2012 SNF PPS final rule (76 FR 48493), the
recalibration of the FY 2011 parity adjustment used 8 months of FY 2011
data as the basis for the recalibration. We observed that case-mix
utilization patterns continued to be consistent over the final 4 months
of FY 2011 and would not have resulted in a significant difference in
the calculated amount of the recalibrated parity adjustment. We have
posted data illustrating the RUG-IV distribution of days for the
entirety of FY 2011, as compared to the days distribution used to
calculate the parity adjustment in the FY 2012 final rule, and the
distribution of days for the first half of FY 2012, all of which may be
found at http://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/SNFPPS/Downloads/SNF_Monitoring.zip.
Additionally, case-mix utilization observed during FY 2012 has not
shown unanticipated changes in patient classification. Overall patient
case mix is not significantly different from that observed in FY 2011.
Table 9 below illustrates a breakdown of the SNF case-mix distribution
of service days by the major RUG classification categories for the full
year of FY 2011 and for the first half of FY 2012.
Table 9--SNF Case-Mix Distributions by Major RUG-IV Category
------------------------------------------------------------------------
FY 2011 Q1 & Q2 FY 2012
(percent) (percent)
------------------------------------------------------------------------
Rehabilitation Plus Extensive 2.5 1.8
Services...........................
Rehabilitation...................... 87.9 88.5
Extensive Services.................. 0.6 0.7
Special Care........................ 4.6 5.0
Clinically Complex.................. 2.5 2.3
[[Page 46225]]
Behavioral Symptoms and Cognitive 0.4 0.3
Performance........................
Reduced Physical Function........... 1.5 1.5
------------------------------------------------------------------------
As illustrated in Table 9, there have been small decreases in both the
Rehabilitation Plus Extensive Services category and in the overall
percentage of service days in a rehabilitation group, and increases in
some of the medically-based RUG categories, most notably Special Care.
It should be noted that the recalibration of the parity adjustment
applied only to those RUG-IV groups connected to therapy
(Rehabilitation Plus Extensive Services and Rehabilitation). This
caused a shift in the hierarchy of nursing case-mix weights among the
various RUG-IV groups. Since SNFs are permitted to ``index maximize''
when determining a resident's RUG classification (i.e., of those RUGs
for which the resident qualifies, SNFs are permitted to choose the one
with the highest per diem payment), it is possible that the
aforementioned case-mix distribution shifts reflect residents that had
previously been classified into therapy groups but now index maximize
into nursing groups instead.
While the overall percentage of resident days that classify into
therapy groups has decreased slightly during the first half of FY 2012
(possibly due in part to index maximization), the data show an increase
in the percentage of service days at the highest therapy level (Ultra
High Rehabilitation) in the first half of FY 2012. This is illustrated
in Table 10 below.
Table 10--SNF Case-Mix Distribution for Therapy RUG-IV Groups, by Minor
RUG-IV Therapy Categories
------------------------------------------------------------------------
FY 2011 Q1 & Q2 FY 2012
(percent) (percent)
------------------------------------------------------------------------
Ultra-High Rehabilitation (>= 720 44.9 46.2
minutes of therapy per week).......
Very-High Rehabilitation (500-719 26.9 26.7
minutes of therapy per week).......
High Rehabilitation (325-499 minutes 10.8 10.7
of therapy per week)...............
Medium Rehabilitation (150-324 7.6 6.6
minutes of therapy per week).......
Low Rehabilitation (45-149 minutes 0.1 0.1
of therapy per week)...............
------------------------------------------------------------------------
>Although there have been decreases in the percentage of service days
which classify into the Very High, High and Medium therapy RUG-IV
categories, some of the decrease may be due to index maximization into
the Special Care category.
B. Group Therapy Allocation
To account more accurately for resource utilization and cost and to
equalize the payment incentives across therapy modes, we allocated
group therapy time beginning in FY 2012. We anticipated that this
policy would result in some change to the type of therapy mode used for
SNF residents. As noted in the section above, we have not observed any
significant difference in patient case mix. However, as illustrated
below in Table 11, providers have significantly changed the mode of
therapy since our STRIVE study (2006-2007).
Table 11--Mode of Therapy Provision
----------------------------------------------------------------------------------------------------------------
Q1 & Q2
STRIVE (percent) FY 2011 FY 2012
(percent) (percent)
----------------------------------------------------------------------------------------------------------------
Individual....................................................... 74 91.8 99.5
Concurrent....................................................... 25 0.8 0.4
Group............................................................ <1 7.4 0.1
----------------------------------------------------------------------------------------------------------------
During FY 2011, we implemented the allocation of concurrent therapy
without the allocation of group therapy and providers shifted from
concurrent therapy to group therapy. During FY 2012, we implemented the
allocation of group therapy, and data from the first and second
quarters of FY 2012 indicate that facilities are providing individual
therapy almost exclusively.
C. COT OMRA
In FY 2012, we introduced a new assessment called the COT OMRA to
capture more accurately the therapy services provided to SNF residents.
Effective for services provided on or after October 1, 2011, SNFs are
required to complete a COT OMRA for patients classified into a RUG-IV
therapy category (and for patients receiving therapy services who are
classified into a nursing RUG because of index maximization), whenever
the intensity of therapy changes to such a degree that it would no
longer reflect the RUG-IV classification and payment assigned for the
patient based on the most recent assessment used for Medicare payment
(76 FR 48525). An evaluation of the
[[Page 46226]]
necessity for a COT OMRA must be completed at the end of each COT
observation period, which is a successive 7-day window beginning on the
day following the ARD set for the most recent scheduled or unscheduled
PPS assessment (or beginning the day therapy resumes in cases where an
EOT-R OMRA is completed), and ending every seven calendar days
thereafter. In cases where the resident's therapy has changed to such a
degree that it is no longer consistent with the resident's current RUG-
IV classification, then the SNF must complete a COT OMRA to reclassify
the resident into the appropriate RUG-IV category. The new RUG-IV group
resulting from the COT OMRA is billed starting the first day of the 7-
day COT observation period for which the COT OMRA was completed and
remains at this level until a new assessment is done that changes the
patient's RUG-IV classification.
Table 12 below shows the distribution of all MDS assessment types
as a percentage of all MDS assessments. We note that the first half of
FY 2012 included a transition period for the new policies and,
therefore, may not be entirely representative of all of FY 2012.
Table 12--Distribution of MDS Assessment Types
------------------------------------------------------------------------
FY 2011 Q1 & Q2 FY 2012
(percent) (percent)
------------------------------------------------------------------------
Scheduled PPS assessment............ 95 84
Start-of-Therapy (SOT) OMRA......... 2 2
End-of-Therapy (EOT) OMRA (w/o 3 3
Resumption)........................
Combined SOT/EOT OMRA............... 0 0
End-of-Therapy OMRA (w/Resumption) N/A 0
(EOT-R OMRA).......................
Combined SOT/EOT-R OMRA............. N/A 0
Change-of-Therapy (COT) OMRA........ N/A 11
------------------------------------------------------------------------
Prior to the implementation of the COT OMRA, scheduled PPS assessments
comprised the vast majority of completed assessments. With the
implementation of the COT OMRA for FY 2012, scheduled PPS assessments
still comprise the vast majority of completed MDS assessments, though
the COT OMRA is the most frequently completed OMRA. Information related
to our continuing monitoring activities will be posted on the SNF PPS
Web site at the following address: http://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/SNFPPS/Downloads/SNF_Monitoring.zip.
Finally, while not related to the above-cited FY 2012 policy
changes, our ongoing monitoring of the quality of care in SNFs also
causes us to have concerns that some SNFs are using the practice of
asking patients to sign binding arbitration agreements that require as
a condition of admission that a patient resolve disputes with the
facility through binding arbitration. We plan to monitor this closely
and take action consistent with current rules and guidelines (including
CMS Survey & Certification Letter S&C-03-10 dated January 9, 2003,
available online at www.cms.gov/Medicare/Provider-Enrollment-and-Certification/SurveyCertificationGenInfo/Downloads/SCletter03-10.pdf),
and consider rulemaking or any additional steps that may be
appropriate.
V. The Skilled Nursing Facility Market Basket Index
Section 1888(e)(5)(A) of the Act requires us to establish a SNF
market basket index (input price index), that reflects changes over
time in the prices of an appropriate mix of goods and services included
in the SNF PPS. This notice incorporates the latest available
projections of the SNF market basket index. Accordingly, we have
developed a SNF market basket index that encompasses the most commonly
used cost categories for SNF routine services, ancillary services, and
capital-related expenses.
Each year, we calculate a revised labor-related share based on the
relative importance of labor-related cost categories in the input price
index. Table 13 summarizes the updated labor-related share for FY 2013.
Table 13--Labor-Related Relative Importance, FY 2012 and FY 2013
----------------------------------------------------------------------------------------------------------------
Relative importance, Relative importance,
labor-related, FY 2012 labor-related, FY 2013
11:2 forecast * 12:2 forecast **
----------------------------------------------------------------------------------------------------------------
Wages and salaries.......................................... 50.129 49.847
Employee benefits........................................... 11.502 11.532
Nonmedical professional fees................................ 1.31 1.307
Labor-intensive services.................................... 3.394 3.364
Capital-related (.391)...................................... 2.358 2.333
---------------------------------------------------
Total................................................... 68.693 68.383
----------------------------------------------------------------------------------------------------------------
* Published in the Federal Register; based on the second-quarter 2011 IHS Global Insight Inc. forecast.
** Based on the second-quarter 2012 IHS Global Insight forecast, with historical data through the first-quarter
2012.
A. Use of the Skilled Nursing Facility Market Basket Percentage
Section 1888(e)(5)(B) of the Act defines the SNF market basket
percentage as the percentage change in the SNF market basket index from
the midpoint of the previous FY to the midpoint of the current FY. For
the Federal rates established in this notice, we use the percentage
change in the SNF market basket index to compute the update factor for
FY 2013. This is based
[[Page 46227]]
on the IGI (formerly DRI-WEFA) second quarter 2012 forecast (with
historical data through the first quarter 2012) of the FY 2013
percentage increase in the FY 2004-based SNF market basket index for
routine, ancillary, and capital-related expenses, which is used to
compute the update factor in this notice. As discussed in section V.C
of this notice, this market basket percentage change is reduced by the
MFP adjustment as required by section 1888(e)(5)(B)(ii) of the Act.
Finally, as discussed in section II.A of this notice, we no longer
compute update factors to adjust a facility-specific portion of the SNF
PPS rates, because the initial 3-phase transition period from facility-
specific to full Federal rates that started with cost reporting periods
beginning in July 1998 has expired.
B. Market Basket Forecast Error Adjustment
As discussed in the June 10, 2003, supplemental proposed rule (68
FR 34768) and finalized in the August 4, 2003, final rule (68 FR 46057
through 46059), the regulations at Sec. 413.337(d)(2) provide for an
adjustment to account for market basket forecast error. The initial
adjustment applied to the update of the FY 2003 rate for FY 2004, and
took into account the cumulative forecast error for the period from FY
2000 through FY 2002, resulting in an increase of 3.26 percent.
Subsequent adjustments in succeeding FYs take into account the forecast
error from the most recently available FY for which there is final
data, and apply whenever the difference between the forecasted and
actual change in the market basket exceeds a specified threshold. We
originally used a 0.25 percentage point threshold for this purpose;
however, for the reasons specified in the FY 2008 SNF PPS final rule
(72 FR 43425, August 3, 2007), we adopted a 0.5 percentage point
threshold effective with FY 2008. As discussed previously in section
II.G.2 of this notice, as the difference between the estimated and
actual amounts of increase in the market basket index for FY 2011 (the
most recently available FY for which there is final data) does not
exceed the 0.5 percentage point threshold, the payment rates for FY
2013 do not include a forecast error adjustment.
C. Multifactor Productivity Adjustment
Section 3401(b) of the Affordable Care Act requires that, in FY
2012 (and in subsequent FYs), the market basket percentage under the
SNF payment system as described in section 1888(e)(5)(B)(i) is to be
reduced annually by the productivity adjustment described in section
1886(b)(3)(B)(xi)(II) of the Act. Specifically, section 3401(a) of the
Affordable Care Act amends section 1886(b)(3)(B) of the Act to add
clause (xi)(II), which sets forth the definition of this productivity
adjustment. The statute defines the productivity adjustment to be equal
to the 10-year moving average of changes in annual economy-wide private
nonfarm business multi-factor productivity (MFP) (as projected by the
Secretary for the 10-year period ending with the applicable fiscal
year, year, cost reporting period, or other annual period) (the ``MFP
adjustment''). The Bureau of Labor Statistics (BLS) is the agency that
publishes the official measure of private nonfarm business MFP. Please
see http://www.bls.gov/mfp to obtain the BLS historical published MFP
data.
The projection of MFP is currently produced by IGI, an economic
forecasting firm. In order to generate a forecast of MFP, IGI
replicated the MFP measure calculated by the BLS, using a series of
proxy variables derived from IGI's U.S. macroeconomic models. This
process is described in greater detail in section III.F.3 of the FY
2012 SNF PPS final rule (76 FR 48527-48529, August 8, 2011).
1. Incorporating the Multifactor Productivity Adjustment Into the
Market Basket Update
According to section 1888(e)(5)(A) of the Act, the Secretary
``shall establish a skilled nursing facility market basket index that
reflects changes over time in the prices of an appropriate mix of goods
and services included in covered skilled nursing facility services.''
As described in section II.G.2 of this notice, we estimate the SNF PPS
market basket percentage for FY 2013 under section 1888(e)(5)(B)(i) of
the Act based on the FY 2004-based SNF market basket. Section 3401(b)
of the Affordable Care Act amends section 1888(e)(5)(B) of the Act, in
part, by adding a new clause (ii), which requires that for FY 2012 and
each subsequent FY, after determining the market basket percentage
described in section 1888(e)(5)(B)(i) of the Act, ``the Secretary shall
reduce such percentage by the productivity adjustment described in
section 1886(b)(3)(B)(xi)(II)'' (which we refer to as the MFP
adjustment). Section 1888(e)(5)(B)(ii) of the Act further states that
the reduction of the market basket percentage by the MFP adjustment may
result in the market basket percentage being less than zero for a FY,
and may result in payment rates under section 1888(e) of the Act for a
FY being less than such payment rates for the preceding FY. Thus, if
the application of the MFP adjustment to the market basket percentage
calculated under section 1888(e)(5)(B)(i) results in an MFP-adjusted
market basket percentage that is less than zero, then the annual update
to the unadjusted Federal per diem rates under section
1888(e)(4)(E)(ii) would be negative, and such rates would decrease
relative to the prior FY.
For the FY 2013 update, the MFP adjustment is calculated as the 10-
year moving average of changes in MFP for the period ending September
30, 2013. In accordance with section 1888(e)(5)(B)(i) of the Act, the
market basket percentage for FY 2013 for the SNF PPS is based on IGI's
second quarter 2012 forecast of the FY 2004-based SNF market basket
update, which is estimated to be 2.5 percent. In accordance with
section 1888(e)(5)(B)(ii) of the Act (as added by section 3401(b) of
the Affordable Care Act), this market basket percentage is then reduced
by the MFP adjustment (the 10-year moving average of changes in MFP for
the period ending September 30, 2013) of 0.7 percent, which is
calculated as described above and based on IGI's second quarter 2012
forecast. The resulting MFP-adjusted market basket update is equal to
1.8 percent, or 2.5 percent less 0.7 percentage point.
D. Federal Rate Update Factor
Section 1888(e)(4)(E)(ii)(IV) of the Act requires that the update
factor used to establish the FY 2013 unadjusted Federal rates be at a
level equal to the market basket percentage change. Accordingly, to
establish the update factor, we determined the total growth from the
average market basket level for the period of October 1, 2011 through
September 30, 2012 to the average market basket level for the period of
October 1, 2012 through September 30, 2013. Using this process, the
market basket update factor for FY 2013 SNF PPS unadjusted Federal
rates is 2.5 percent. As required by section 1888(e)(5)(B) of the Act,
this market basket percentage is then reduced by the MFP adjustment
(the 10-year moving average of changes in MFP for the period ending
September 30, 2013) of 0.7 percent as described in section V.C. The
resulting MFP-adjusted market basket update is equal to 1.8 percent, or
2.5 percent less 0.7 percentage point. We used this MFP-adjusted market
basket update factor to compute the SNF PPS rate shown in Tables 2 and
3.
[[Page 46228]]
VI. Consolidated Billing
Section 4432(b) of the BBA established a consolidated billing
requirement that places with the SNF the Medicare billing
responsibility for virtually all of the services that the SNF's
residents receive, except for a small number of services that the
statute specifically identifies as being excluded from this provision.
As noted previously in section II of this notice, subsequent
legislation enacted a number of modifications in the consolidated
billing provision.
Specifically, section 103 of the BBRA amended this provision by
further excluding a number of individual ``high-cost, low-probability''
services, identified by Healthcare Common Procedure Coding System
(HCPCS) codes, within several broader categories (chemotherapy and its
administration, radioisotope services, and customized prosthetic
devices) that otherwise remained subject to the provision. We discuss
this BBRA amendment in greater detail in the proposed and final rules
for FY 2001 (65 FR 19231 through 19232, April 10, 2000, and 65 FR 46790
through 46795, July 31, 2000), as well as in Program Memorandum AB-00-
18 (Change Request 1070), issued March 2000, which is
available online at www.cms.gov/transmittals/downloads/ab001860.pdf.
Section 313 of the BIPA further amended this provision by repealing
its Part B aspect; that is, its applicability to services furnished to
a resident during a SNF stay that Medicare Part A does not cover.
(However, physical therapy, occupational therapy, and speech-language
pathology services remain subject to consolidated billing, regardless
of whether the resident who receives these services is in a covered
Part A stay.) We discuss this BIPA amendment in greater detail in the
proposed and final rules for FY 2002 (66 FR 24020 through 24021, May
10, 2001, and 66 FR 39587 through 39588, July 31, 2001).
In addition, section 410 of the MMA amended this provision by
excluding certain practitioner and other services furnished to SNF
residents by RHCs and FQHCs. We discuss this MMA amendment in greater
detail in the update notice for FY 2005 (69 FR 45818 through 45819,
July 30, 2004), as well as in Medicare Learning Network (MLN) Matters
article MM3575, which is available online at http://www.cms.gov/MLNMattersArticles/downloads/MM3575.pdf.
Further, while not substantively revising the consolidated billing
requirement itself, a related provision was enacted in the Medicare
Improvements for Patients and Providers Act of 2008 (MIPPA, Pub. L.
110-275). Specifically, section 149 of MIPPA amended section
1834(m)(4)(C)(ii) of the Act to add subclause (VII), which adds SNFs
(as defined in section 1819(a) of the Act) to the list of entities that
can serve as a telehealth ``originating site'' (that is, the location
at which an eligible individual can receive, through a
telecommunications system, services of a physician or other
practitioner who is located elsewhere at a ``distant site'').
As explained in the Medicare Physician Fee Schedule (PFS) final
rule for calendar year (CY) 2009 (73 FR 69726, 69879, November 19,
2008), a telehealth originating site receives a facility fee which is
always separately payable under Part B outside of any other payment
methodology. Section 149(b) of MIPPA amended section 1888(e)(2)(A)(ii)
of the Act to exclude telehealth services furnished under section
1834(m)(4)(C)(ii)(VII) of the Act from the definition of ``covered
skilled nursing facility services'' that are paid under the SNF PPS.
Thus, a SNF `` * * * can receive separate payment for a telehealth
originating site facility fee even in those instances where it also
receives a bundled per diem payment under the SNF PPS for a resident's
covered Part A stay'' (73 FR 69881). By contrast, under section
1834(m)(2)(A) of the Act, a telehealth distant site service is payable
under Part B to an eligible physician or practitioner only to the same
extent that it would have been so payable if furnished without the use
of a telecommunications system. Thus, as explained in the CY 2009
Physician Fee Schedule final rule (73 FR 69726, 69880), eligible
distant site physicians or practitioners can receive payment for a
telehealth service that they furnish
* * * only if the service is separately payable under the PFS when
furnished in a face-to-face encounter at that location. For example,
we pay distant site physicians or practitioners for furnishing
services via telehealth only if such services are not included in a
bundled payment to the facility that serves as the originating site
(73 FR 69880).
This means that in those situations where a SNF serves as the
telehealth originating site, the distant site professional services
would be separately payable under Part B only to the extent that they
are not already included in the SNF PPS bundled per diem payment and
subject to consolidated billing. Thus, for a type of practitioner whose
services are not otherwise excluded from consolidated billing when
furnished during a face-to-face encounter, the use of a telehealth
distant site would not serve to unbundle those services. In fact,
consolidated billing does exclude the professional services of
physicians, along with those of most of the other types of telehealth
practitioners that the law specifies at section 1842(b)(18)(C) of the
Act; that is, physician assistants, nurse practitioners, clinical nurse
specialists, certified registered nurse anesthetists, certified nurse
midwives, and clinical psychologists (see section 1888(e)(2)(A)(ii) of
the Act and 42 CFR 411.15(p)(2)). However, the services of clinical
social workers, registered dietitians and nutrition professionals
remain subject to consolidated billing when furnished to a SNF's Part A
resident and, thus, cannot qualify for separate Part B payment as
telehealth distant site services in this situation. Additional
information on this provision appears in MLN Matters article
MM6215, which is available online at http://www.cms.gov/MLNMattersArticles/downloads/MM6215.pdf. To date, the Congress has
enacted no further legislation affecting the consolidated billing
provision.
VII. Application of the SNF PPS to SNF Services Furnished by Swing-Bed
Hospitals
In accordance with section 1888(e)(7) of the Act, as amended by
section 203 of the BIPA, Part A pays critical access hospitals (CAHs)
on a reasonable cost basis for SNF services furnished under a swing-bed
agreement. However, effective with cost reporting periods beginning on
or after July 1, 2002, the swing-bed services of non-CAH rural
hospitals are paid under the SNF PPS. As explained in the final rule
for FY 2002 (66 FR 39562, July 31, 2001), we selected this effective
date consistent with the statutory provision to integrate swing-bed
rural hospitals into the SNF PPS by the end of the SNF transition
period, June 30, 2002.
Accordingly, all non-CAH swing-bed rural hospitals have come under
the SNF PPS as of June 30, 2003. Therefore, all rates and wage indexes
outlined in earlier sections of this notice for the SNF PPS also apply
to all non-CAH swing-bed rural hospitals. A complete discussion of
assessment schedules, the MDS and the transmission software (RAVEN-SB
for Swing Beds) appears in the final rule for FY 2002 (66 FR 39562,
July 31, 2001) and in the final rule for FY 2010 (74 FR 40288, August
11, 2009). As finalized in the FY 2010 SNF PPS final rule (74 FR 40356-
57), effective October 1, 2010, non-CAH swing-bed rural hospitals are
required to complete an MDS 3.0 swing-bed
[[Page 46229]]
assessment which is limited to the required demographic, payment, and
quality items. The latest changes in the MDS for swing-bed rural
hospitals appear on the SNF PPS Web site, http://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/SNFPPS/index.html.
VIII. Collection of Information Requirements
This notice does not impose any new or revised information
collection or recordkeeping requirements. The information collection
requirements referenced in this notice with regard to resident
assessment information used to determine facility payments are
currently approved under OCN 0938-0739 (which relates to the Medicare
PPS Assessment Form (MPAF) information collection) and OCN 0938-0872
(which relates to the Minimum Data Set for Swing-Bed Hospitals),
neither of which is affected by this notice. This notice, OCN: 0938-
0739, and OCN: 0938-0872 do not impose any burden requiring additional
Office of Management and Budget review under the authority of the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).
IX. Waiver of Notice and Comment
We would ordinarily publish a notice of proposed rulemaking in the
Federal Register to provide a period for public comment, followed by a
final rule. However, we can waive this procedure if we find good cause
that a notice and comment procedure is impracticable, unnecessary, or
contrary to the public interest and incorporate a statement of the
finding and its reasons in the notice issued. In this instance, we have
found good cause to waive notice and comment rulemaking and are issuing
this update notice.
We believe it is unnecessary to undertake notice and comment
rulemaking in this instance, as the statute requires annual updates to
the SNF PPS rates, the methodologies used to update the rates in this
notice have been previously subject to public comment and finalized,
and this notice initiates no policy changes with regard to the SNF PPS,
but simply reflects application of previously established
methodologies. Therefore, we find good cause to waive notice and
comment procedures.
X. Economic Analyses
A. Regulatory Impact Analysis
1. Introduction
We have examined the impacts of this notice as required by
Executive Order 12866 on Regulatory Planning and Review (September 30,
1993), Executive Order 13563 on Improving Regulation and Regulatory
Review (January 18, 2011), the Regulatory Flexibility Act (RFA)
(September 19, 1980, Pub. L. 96-354), section 1102(b) of the Act,
section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA, March
22, 1995; Pub. L. 104-4), Executive Order 13132 on Federalism (August
4, 1999), and the Congressional Review Act (5 U.S.C. 804(2)).
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This notice has been designated an economically
significant rule, under section 3(f)(1) of Executive Order 12866.
Accordingly, we have prepared a regulatory impact analysis (RIA) as
further discussed below. Also, the rule has been reviewed by the Office
of Management and Budget.
2. Statement of Need
This notice updates the SNF prospective payment rates for FY 2013
as required under section 1888(e)(4)(E) of the Act. It also responds to
section 1888(e)(4)(H) of the Act, which requires the Secretary to
``provide for publication in the Federal Register'' before August 1
that precedes the start of each fiscal year, the unadjusted Federal per
diem rates, the case-mix classification system, and the factors to be
applied in making the area wage adjustment. As these statutory
provisions prescribe a detailed methodology for calculating and
disseminating payment rates under the SNF PPS, we do not have the
discretion to adopt an alternative approach.
3. Overall Impacts
This notice sets forth updates of the SNF PPS rates contained in
the final rule for FY 2012 (76 FR 48486, August 8, 2011). Based on the
above, we estimate that the aggregate impact would be an increase of
$670 million in payments to SNFs, resulting from the MFP-adjusted
market basket update to the payment rates. The impact analysis of this
notice represents the projected effects of the changes in the SNF PPS
from FY 2012 to FY 2013. Although the best data available are utilized,
there is no attempt to predict behavioral responses to these changes,
or to make adjustments for future changes in such variables as days or
case-mix.
Certain events may occur to limit the scope or accuracy of our
impact analysis, as this analysis is future-oriented and, thus, very
susceptible to forecasting errors due to certain events that may occur
within the assessed impact time period. Some examples of possible
events may include newly-legislated general Medicare program funding
changes by the Congress, or changes specifically related to SNFs. In
addition, changes to the Medicare program may continue to be made as a
result of previously-enacted legislation, or new statutory provisions.
Although these changes may not be specific to the SNF PPS, the nature
of the Medicare program is such that the changes may interact and,
thus, the complexity of the interaction of these changes could make it
difficult to predict accurately the full scope of the impact upon SNFs.
In accordance with section 1888(e)(4)(E) and (e)(5) of the Act, we
update the FY 2012 payment rates by a factor equal to the market basket
index percentage change adjusted by the FY 2011 forecast error
adjustment (if applicable) and the MFP adjustment to determine the
payment rates for FY 2013. As discussed previously, for FY 2012 and
each subsequent FY, as required by section 1888(e)(5)(B) of the Act as
amended by section 3401(b) of the Affordable Care Act, the market
basket percentage is reduced by the MFP adjustment. The special AIDS
add-on established by section 511 of the MMA remains in effect until
``* * * such date as the Secretary certifies that there is an
appropriate adjustment in the case mix * * * .'' We have not provided a
separate impact analysis for the MMA provision. Our latest estimates
indicate that there are fewer than 3,800 beneficiaries who qualify for
the AIDS add-on payment. The impact to Medicare is included in the
``total'' column of Table 14. In updating the rates for FY 2013, we
made a number of standard annual revisions and clarifications mentioned
elsewhere in this notice (for example, the update to the wage and
market basket indexes used for adjusting the Federal rates).
The update set forth in this notice applies to payments in FY 2013.
Accordingly, the analysis that follows only describes the impact of
this single year. In accordance with the requirements of the Act, we
will publish a notice or rule for each subsequent FY that will provide
for an update to the payment rates and include an associated impact
analysis.
[[Page 46230]]
4. Detailed Economic Analysis
The FY 2013 impacts appear in Table 14. The breakdown of the
various categories of data in the table follows.
The first column shows the breakdown of all SNFs by urban or rural
status, hospital-based or freestanding status, census region, and
ownership.
The first row of figures describes the estimated effects of the
various changes on all facilities. The next six rows show the effects
on facilities split by hospital-based, freestanding, urban, and rural
categories. The urban and rural designations are based on the location
of the facility under the CBSA designation. The next nineteen rows show
the effects on facilities by urban versus rural status by census
region. The last three rows show the effects on facilities by ownership
(i.e., government, profit, and non-profit status).
The second column in the table shows the number of facilities in
the impact database.
The third column of the table shows the effect of the annual update
to the wage index. This represents the effect of using the most recent
wage data available. The total impact of this change is zero percent;
however, there are distributional effects of the change.
The fourth column shows the effect of all of the changes on the FY
2013 payments. The update of 1.8 percent (consisting of the market
basket increase of 2.5 percentage points, reduced by the 0.7 percentage
point MFP adjustment) is constant for all providers and, though not
shown individually, is included in the total column. It is projected
that aggregate payments will increase by 1.8 percent, assuming
facilities do not change their care delivery and billing practices in
response.
As can be seen from Table 14, the combined effects of all of the
changes vary by specific types of providers and by location. Though all
facilities would experience payment increases, the amount of the
overall increase varies due to the impact of the wage index update. The
wage index change can adjust the overall impact of the 1.8 percent
update upward or downward. For example, providers in the urban New
England region would experience a 2.6 percent increase in FY 2013 total
payments. The increase for this region differs from the aggregate 1.8
percent update due to the distributional effect of the wage index
update as shown in the third column.
Table 14--RUG-IV Projected Impact to the SNF PPS for FY 2013
----------------------------------------------------------------------------------------------------------------
Number of Total FY 2013
facilities FY Update wage change
2013 data (percent) (percent)
----------------------------------------------------------------------------------------------------------------
Group:
Total....................................................... 15,407 0.0 1.8
Urban....................................................... 10,568 0.1 1.9
Rural....................................................... 4,839 -0.3 1.5
Hospital based urban........................................ 761 -0.1 1.7
Freestanding urban.......................................... 9,807 0.1 1.9
Hospital based rural........................................ 428 -0.1 1.7
Freestanding rural.......................................... 4,411 -0.3 1.5
Urban by region:
New England................................................. 811 0.8 2.6
Middle Atlantic............................................. 1,456 0.0 1.8
South Atlantic.............................................. 1,747 -0.3 1.5
East North Central.......................................... 2,043 0.2 2.0
East South Central.......................................... 518 -1.0 0.8
West North Central.......................................... 870 0.5 2.3
West South Central.......................................... 1,224 -0.3 1.5
Mountain.................................................... 482 -0.9 0.9
Pacific..................................................... 1,411 0.9 2.7
Outlying.................................................... 6 0.2 2.0
Rural by region:
New England................................................. 152 -0.9 0.9
Middle Atlantic............................................. 262 -0.1 1.7
South Atlantic.............................................. 611 -0.7 1.1
East North Central.......................................... 935 0.3 2.1
East South Central.......................................... 558 -0.4 1.4
West North Central.......................................... 1,120 -0.9 0.9
West South Central.......................................... 822 0.3 2.1
Mountain.................................................... 250 0.3 2.1
Pacific..................................................... 129 -1.4 0.3
Ownership:
Government.................................................. 805 0.1 1.9
Profit...................................................... 10,742 0.0 1.8
Non-profit.................................................. 3,860 0.1 1.9
----------------------------------------------------------------------------------------------------------------
Note: The Total column includes the 2.5 percent market basket increase, reduced by the 0.7 percentage point MFP
adjustment. Additionally, we found no SNFs in rural outlying areas.
5. Alternatives Considered
As described above, we estimate that the aggregate impact for FY
2013 would be an increase of $670 million in payments to SNFs,
resulting from the MFP-adjusted market basket update to the payment
rates.
Section 1888(e) of the Act establishes the SNF PPS for the payment
of Medicare SNF services for cost reporting periods beginning on or
after July 1, 1998. This section of the statute prescribes a detailed
formula for calculating payment rates under the SNF PPS, and does not
provide for the use of any alternative methodology. It specifies that
the base year cost data to
[[Page 46231]]
be used for computing the SNF PPS payment rates must be from FY 1995
(October 1, 1994, through September 30, 1995). In accordance with the
statute, we also incorporated a number of elements into the SNF PPS
(for example, case-mix classification methodology, a market basket
index, a wage index, and the urban and rural distinction used in the
development or adjustment of the Federal rates). Further, section
1888(e)(4)(H) of the Act specifically requires us to disseminate the
payment rates for each new FY through the Federal Register, and to do
so before the August 1 that precedes the start of the new FY.
Accordingly, we are not pursuing alternatives with respect to the
payment methodology as discussed above.
6. Accounting Statement
As required by OMB Circular A-4 (available online at
www.whitehouse.gov/sites/default/files/omb/assets/regulatory_matters_pdf/a-4.pdf), in Table 15, we have prepared an accounting statement
showing the classification of the expenditures associated with the
provisions of this notice. Table 15 provides our best estimate of the
possible changes in Medicare payments under the SNF PPS as a result of
the policies in this notice, based on the data for 15,407 SNFs in our
database. All expenditures are classified as transfers to Medicare
providers (that is, SNFs).
TABLE 15--Accounting Statement: Classification of Estimated
Expenditures, From the 2012 SNF PPS Fiscal Year to the 2013 SNF PPS
Fiscal Year
------------------------------------------------------------------------
Category Transfers
------------------------------------------------------------------------
Annualized Monetized Transfers.... 670 million.*
From Whom To Whom?................ Federal Government to SNF Medicare
Providers.
------------------------------------------------------------------------
* The net increase of $670 million in transfer payments is a result of
the MFP-adjusted market basket increase of $670 million.
7. Conclusion
This notice sets forth updates of the SNF PPS rates contained in
the final rule for FY 2012 (76 FR 48486, August 8, 2011). Based on the
above, we estimate the overall estimated payments for SNFs in FY 2013
are projected to increase by $670 million, or 1.8 percent, compared
with those in FY 2012. We estimate that in FY 2013 under RUG-IV, SNFs
in urban and rural areas would experience, on average, a 1.9 and 1.5
percent increase, respectively, in estimated payments compared with FY
2012. Providers in the urban Pacific region would experience the
largest estimated increase in payments of approximately 2.7 percent.
Rural Pacific providers would experience the smallest estimated
increase in payments of 0.3 percent.
B. Regulatory Flexibility Act Analysis
The RFA requires agencies to analyze options for regulatory relief
of small entities, if a rule has a significant impact on a substantial
number of small entities. For purposes of the RFA, small entities
include small businesses, non-profit organizations, and small
governmental jurisdictions. Most SNFs and most other providers and
suppliers are small entities, either by their non-profit status or by
having revenues of $13.5 million or less in any 1 year. For purposes of
the RFA, approximately 91 percent of SNFs are considered small
businesses according to the Small Business Administration's latest size
standards, with total revenues of $13.5 million or less in any 1 year.
(For details, see the Small Business Administration's Web site at
http://www.sba.gov/category/navigation-structure/contracting/contracting-officials/eligibility-size-standards). Individuals and
States are not included in the definition of a small entity. In
addition, approximately 25 percent of SNFs classified as small entities
are non-profit organizations. Finally, the estimated number of small
business entities does not distinguish provider establishments that are
within a single firm and, therefore, the number of SNFs classified as
small entities may be higher than the estimate above.
This notice sets forth updates of the SNF PPS rates contained in
the final rule for FY 2012 (76 FR 48486, August 8, 2011). Based on the
above, we estimate that the aggregate impact would be an increase of
$670 million in payments to SNFs, resulting from the MFP-adjusted
market basket update to the payment rates. While it is projected in
Table 14 that all providers would experience a net increase in
payments, we note that some individual providers may experience larger
increases in payments than others due to the distributional impact of
the FY 2013 wage indexes and the degree of Medicare utilization.
Guidance issued by the Department of Health and Human Services on
the proper assessment of the impact on small entities in rulemakings,
utilizes a cost or revenue impact of 3 to 5 percent as a significance
threshold under the RFA. According to MedPAC, Medicare covers
approximately 12 percent of total patient days in freestanding
facilities and 23 percent of facility revenue (March 2012). However, it
is worth noting that the distribution of days and payments is highly
variable. That is, the majority of SNFs have significantly lower
Medicare utilization. As a result, for most facilities, when all payers
are included in the revenue stream, the overall impact on total
revenues should be substantially less than those impacts presented in
Table 14. As indicated in Table 14, the effect on facilities is
projected to be an aggregate positive impact of 1.8 percent.
Additionally, as discussed in the FY 2012 final rule (76 FR 48539),
given the high proportion of SNFs that constitute small entities, any
discussion of the impacts on the SNF industry as a whole may be
directly characterized as an analysis of the impact of this notice on
small entities. As the overall impact on the industry as a whole, and
thus on small entities specifically, is less than the 3 to 5 percent
threshold discussed above, the Secretary has determined that this
notice would not have a significant impact on a substantial number of
small entities.
In addition, section 1102(b) of the Act requires us to prepare a
regulatory impact analysis if a rule may have a significant impact on
the operations of a substantial number of small rural hospitals. This
analysis must conform to the provisions of section 604 of the RFA. For
purposes of section 1102(b) of the Act, we define a small rural
hospital as a hospital that is located outside of a Metropolitan
Statistical Area and has fewer than 100 beds. This notice would affect
small rural hospitals that (a) furnish SNF services under a swing-bed
agreement or (b) have a hospital-based SNF. We anticipate that the
impact on small rural hospitals would be similar to the impact on SNF
providers overall. Moreover, as noted in the FY 2012 final rule (76 FR
48539), the category of small rural hospitals would be included within
the analysis of the impact of this
[[Page 46232]]
notice on small entities in general. As indicated in Table 14, the
effect on facilities is projected to be an aggregate positive impact of
1.8 percent. As a result, the Secretary has determined that this notice
would not have a significant impact on a substantial number of small
rural hospitals.
C. Unfunded Mandates Reform Act Analysis
Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) also
requires that agencies assess anticipated costs and benefits before
issuing any rule whose mandates require spending in any 1 year of $100
million in 1995 dollars, updated annually for inflation. In 2012, that
threshold is approximately $139 million. This notice would not impose
spending costs on State, local, or tribal governments in the aggregate,
or by the private sector, of $139 million.
D. Federalism Analysis
Executive Order 13132 establishes certain requirements that an
agency must meet when it promulgates a proposed rule (and subsequent
final rule) that impose substantial direct requirement costs on State
and local governments, preempts State law, or otherwise has Federalism
implications. This notice would have no substantial direct effect on
State and local governments, preempt State law, or otherwise have
Federalism implications.
Authority: Catalog of Federal Domestic Assistance Program No.
93.773, Medicare--Hospital Insurance; and Program No. 93.774,
Medicare--Supplementary Medical Insurance Program.
Dated: April 17, 2012.
Marilyn Tavenner,
Acting Administrator, Centers for Medicare & Medicaid Services.
Approved: July 24, 2012.
Kathleen Sebelius,
Secretary.
Addendum--FY 2013 CBSA Wage Index Tables
In this addendum, we provide the wage index tables referred to in
the preamble to this notice. Tables A and B display the CBSA-based wage
index values for urban and rural providers.
Table A--FY 2013 Wage Index for Urban Areas Based on CBSA Labor Market
Areas
------------------------------------------------------------------------
Urban area
CBSA code (constituent counties) Wage index
------------------------------------------------------------------------
10180.......................... Abilene, TX............ 0.8324
Callahan County, TX
Jones County, TX
Taylor County, TX
10380.......................... Aguadilla-Isabela-San 0.3532
Sebasti[aacute]n, PR.
Aguada Municipio, PR
Aguadilla Municipio, PR
A[ntilde]asco
Municipio, PR
Isabela Municipio, PR
Lares Municipio, PR
Moca Municipio, PR
Rinc[oacute]n
Municipio, PR
San Sebasti[aacute]n
Municipio, PR
10420.......................... Akron, OH.............. 0.8729
Portage County, OH
Summit County, OH
10500.......................... Albany, GA............. 0.8435
Baker County, GA
Dougherty County, GA
Lee County, GA
Terrell County, GA
Worth County, GA
10580.......................... Albany-Schenectady- 0.8647
Troy, NY.
Albany County, NY
Rensselaer County, NY
Saratoga County, NY
Schenectady County, NY
Schoharie County, NY
10740.......................... Albuquerque, NM........ 0.9542
Bernalillo County, NM
Sandoval County, NM
Torrance County, NM
Valencia County, NM
10780.......................... Alexandria, LA......... 0.7857
Grant Parish, LA
Rapides Parish, LA
10900.......................... Allentown-Bethlehem- 0.9084
Easton, PA-NJ.
Warren County, NJ
Carbon County, PA
Lehigh County, PA
Northampton County, PA
11020.......................... Altoona, PA............ 0.8898
Blair County, PA
11100.......................... Amarillo, TX........... 0.8506
Armstrong County, TX
Carson County, TX
Potter County, TX
Randall County, TX
[[Page 46233]]
11180.......................... Ames, IA............... 0.9595
Story County, IA
11260.......................... Anchorage, AK.......... 1.2147
Anchorage Municipality,
AK
Matanuska-Susitna
Borough, AK
11300.......................... Anderson, IN........... 0.9547
Madison County, IN
11340.......................... Anderson, SC........... 0.8929
Anderson County, SC
11460.......................... Ann Arbor, MI.......... 1.0115
Washtenaw County, MI
11500.......................... Anniston-Oxford, AL.... 0.7539
Calhoun County, AL
11540.......................... Appleton, WI........... 0.9268
Calumet County, WI
Outagamie County, WI
11700.......................... Asheville, NC.......... 0.8555
Buncombe County, NC
Haywood County, NC
Henderson County, NC
Madison County, NC
12020.......................... Athens-Clarke County, 0.9488
GA.
Clarke County, GA
Madison County, GA
Oconee County, GA
Oglethorpe County, GA
12060.......................... Atlanta-Sandy Springs- 0.9517
Marietta, GA.
Barrow County, GA
Bartow County, GA
Butts County, GA
Carroll County, GA
Cherokee County, GA
Clayton County, GA
Cobb County, GA
Coweta County, GA
Dawson County, GA
DeKalb County, GA
Douglas County, GA
Fayette County, GA
Forsyth County, GA
Fulton County, GA
Gwinnett County, GA
Haralson County, GA
Heard County, GA
Henry County, GA
Jasper County, GA
Lamar County, GA
Meriwether County, GA
Newton County, GA
Paulding County, GA
Pickens County, GA
Pike County, GA
Rockdale County, GA
Spalding County, GA
Walton County, GA
12100.......................... Atlantic City- 1.1977
Hammonton, NJ.
Atlantic County, NJ
12220.......................... Auburn-Opelika, AL..... 0.7437
Lee County, AL
12260.......................... Augusta-Richmond 0.9373
County, GA-SC.
Burke County, GA
Columbia County, GA
McDuffie County, GA
Richmond County, GA
Aiken County, SC
Edgefield County, SC
12420.......................... Austin-Round Rock, TX.. 0.9746
Bastrop County, TX
Caldwell County, TX
Hays County, TX
Travis County, TX
[[Page 46234]]
Williamson County, TX
12540.......................... Bakersfield, CA........ 1.1611
Kern County, CA
12580.......................... Baltimore-Towson, MD... 1.0147
Anne Arundel County, MD
Baltimore County, MD
Carroll County, MD
Harford County, MD
Howard County, MD
Queen Anne's County, MD
Baltimore City, MD
12620.......................... Bangor, ME............. 1.0184
Penobscot County, ME
12700.......................... Barnstable Town, MA.... 1.2843
Barnstable County, MA
12940.......................... Baton Rouge, LA........ 0.8147
Ascension Parish, LA
East Baton Rouge
Parish, LA
East Feliciana Parish,
LA
Iberville Parish, LA
Livingston Parish, LA
Pointe Coupee Parish,
LA
St. Helena Parish, LA
West Baton Rouge
Parish, LA
West Feliciana Parish,
LA
12980.......................... Battle Creek, MI....... 0.9912
Calhoun County, MI
13020.......................... Bay City, MI........... 0.9181
Bay County, MI
13140.......................... Beaumont-Port Arthur, 0.8533
TX.
Hardin County, TX
Jefferson County, TX
Orange County, TX
13380.......................... Bellingham, WA......... 1.1415
Whatcom County, WA
13460.......................... Bend, OR............... 1.1119
Deschutes County, OR
13644.......................... Bethesda-Frederick- 1.0374
Gaithersburg, MD.
Frederick County, MD
Montgomery County, MD
13740.......................... Billings, MT........... 0.8737
Carbon County, MT
Yellowstone County, MT
13780.......................... Binghamton, NY......... 0.8707
Broome County, NY
Tioga County, NY
13820.......................... Birmingham-Hoover, AL.. 0.8516
Bibb County, AL
Blount County, AL
Chilton County, AL
Jefferson County, AL
St. Clair County, AL
Shelby County, AL
Walker County, AL
13900.......................... Bismarck, ND........... 0.7261
Burleigh County, ND
Morton County, ND
13980.......................... Blacksburg- 0.8348
Christiansburg-
Radford, VA.
Giles County, VA
Montgomery County, VA
Pulaski County, VA
Radford City, VA
14020.......................... Bloomington, IN........ 0.8752
Greene County, IN
Monroe County, IN
Owen County, IN
14060.......................... Bloomington-Normal, IL. 0.9502
McLean County, IL
14260.......................... Boise City-Nampa, ID... 0.8897
Ada County, ID
Boise County, ID
[[Page 46235]]
Canyon County, ID
Gem County, ID
Owyhee County, ID
14484.......................... Boston-Quincy, MA...... 1.2378
Norfolk County, MA
Plymouth County, MA
Suffolk County, MA
14500.......................... Boulder, CO............ 1.0574
Boulder County, CO
14540.......................... Bowling Green, KY...... 0.8665
Edmonson County, KY
Warren County, KY
14740.......................... Bremerton-Silverdale, 1.0829
WA.
Kitsap County, WA
14860.......................... Bridgeport-Stamford- 1.3170
Norwalk, CT.
Fairfield County, CT
15180.......................... Brownsville-Harlingen, 0.8612
TX.
Cameron County, TX
15260.......................... Brunswick, GA.......... 0.8792
Brantley County, GA
Glynn County, GA
McIntosh County, GA
15380.......................... Buffalo-Niagara Falls, 0.9999
NY.
Erie County, NY
Niagara County, NY
15500.......................... Burlington, NC......... 0.8485
Alamance County, NC
15540.......................... Burlington-South 0.9997
Burlington, VT.
Chittenden County, VT
Franklin County, VT
Grand Isle County, VT
15764.......................... Cambridge-Newton- 1.1262
Framingham, MA.
Middlesex County, MA
15804.......................... Camden, NJ............. 1.0474
Burlington County, NJ
Camden County, NJ
Gloucester County, NJ
15940.......................... Canton-Massillon, OH... 0.8834
Carroll County, OH
Stark County, OH
15980.......................... Cape Coral-Fort Myers, 0.9153
FL.
Lee County, FL
16020.......................... Cape Girardeau-Jackson, 0.8860
MO-IL.
Alexander County, IL
Bollinger County, MO
Cape Girardeau County,
MO
16180.......................... Carson City, NV........ 1.0559
Carson City, NV
16220.......................... Casper, WY............. 1.0143
Natrona County, WY.....
16300.......................... Cedar Rapids, IA....... 0.8944
Benton County, IA......
Jones County, IA.......
Linn County, IA........
16580.......................... Champaign-Urbana, IL... 0.9907
Champaign County, IL...
Ford County, IL........
Piatt County, IL.......
16620.......................... Charleston, WV......... 0.8050
Boone County, WV.......
Clay County, WV........
Kanawha County, WV.....
Lincoln County, WV.....
Putnam County, WV......
16700.......................... Charleston-North 0.8820
Charleston-
Summerville, SC.
Berkeley County, SC....
Charleston County, SC..
Dorchester County, SC..
[[Page 46236]]
16740.......................... Charlotte-Gastonia- 0.9215
Concord, NC-SC.
Anson County, NC.......
Cabarrus County, NC....
Gaston County, NC......
Mecklenburg County, NC.
Union County, NC.......
York County, SC........
16820.......................... Charlottesville, VA.... 0.9195
Albemarle County, VA...
Fluvanna County, VA....
Greene County, VA......
Nelson County, VA......
Charlottesville City,
VA.
16860.......................... Chattanooga, TN-GA..... 0.8678
Catoosa County, GA.....
Dade County, GA........
Walker County, GA......
Hamilton County, TN....
Marion County, TN......
Sequatchie County, TN..
16940.......................... Cheyenne, WY........... 0.9730
Laramie County, WY.....
16974.......................... Chicago-Naperville- 1.0600
Joliet, IL.
Cook County, IL........
DeKalb County, IL......
DuPage County, IL......
Grundy County, IL......
Kane County, IL........
Kendall County, IL.....
McHenry County, IL.....
Will County, IL........
17020.......................... Chico, CA.............. 1.1197
Butte County, CA.......
17140.......................... Cincinnati-Middletown, 0.9508
OH-KY-IN.
Dearborn County, IN....
Franklin County, IN....
Ohio County, IN........
Boone County, KY.......
Bracken County, KY.....
Campbell County, KY....
Gallatin County, KY....
Grant County, KY.......
Kenton County, KY......
Pendleton County, KY...
Brown County, OH.......
Butler County, OH......
Clermont County, OH....
Hamilton County, OH....
Warren County, OH......
17300.......................... Clarksville, TN-KY..... 0.8082
Christian County, KY...
Trigg County, KY.......
Montgomery County, TN..
Stewart County, TN.....
17420.......................... Cleveland, TN.......... 0.7592
Bradley County, TN.....
Polk County, TN........
17460.......................... Cleveland-Elyria- 0.9082
Mentor, OH.
Cuyahoga County, OH....
Geauga County, OH......
Lake County, OH........
Lorain County, OH......
Medina County, OH......
17660.......................... Coeur d'Alene, ID...... 0.9218
Kootenai County, ID....
17780.......................... College Station-Bryan, 0.9584
TX.
Brazos County, TX......
Burleson County, TX....
Robertson County, TX...
[[Page 46237]]
17820.......................... Colorado Springs, CO... 0.9364
El Paso County, CO.....
Teller County, CO......
17860.......................... Columbia, MO........... 0.8339
Boone County, MO.......
Howard County, MO......
17900.......................... Columbia, SC........... 0.8560
Calhoun County, SC.....
Fairfield County, SC...
Kershaw County, SC.....
Lexington County, SC...
Richland County, SC....
Saluda County, SC......
17980.......................... Columbus, GA-AL........ 0.8857
Russell County, AL.....
Chattahoochee County,
GA.
Harris County, GA......
Marion County, GA......
Muscogee County, GA....
18020.......................... Columbus, IN........... 0.9564
Bartholomew County, IN.
18140.......................... Columbus, OH........... 0.9763
Delaware County, OH....
Fairfield County, OH...
Franklin County, OH....
Licking County, OH.....
Madison County, OH.....
Morrow County, OH......
Pickaway County, OH....
Union County, OH.......
18580.......................... Corpus Christi, TX..... 0.8591
Aransas County, TX.....
Nueces County, TX......
San Patricio County, TX
18700.......................... Corvallis, OR.......... 1.0715
Benton County, OR......
18880.......................... Crestview-Fort Walton 0.8916
Beach-Destin, FL.
Okaloosa County, FL....
19060.......................... Cumberland, MD-WV...... 0.8836
Allegany County, MD....
Mineral County, WV.....
19124.......................... Dallas-Plano-Irving, TX 0.9835
Collin County, TX......
Dallas County, TX......
Delta County, TX.......
Denton County, TX......
Ellis County, TX.......
Hunt County, TX........
Kaufman County, TX.....
Rockwall County, TX....
19140.......................... Dalton, GA............. 0.8828
Murray County, GA......
Whitfield County, GA...
19180.......................... Danville, IL........... 0.9977
Vermilion County, IL...
19260.......................... Danville, VA........... 0.8218
Pittsylvania County, VA
Danville City, VA......
19340.......................... Davenport-Moline-Rock 0.9145
Island, IA-IL.
Henry County, IL.......
Mercer County, IL......
Rock Island County, IL.
Scott County, IA.......
19380.......................... Dayton, OH............. 0.9136
Greene County, OH......
Miami County, OH.......
Montgomery County, OH..
Preble County, OH......
[[Page 46238]]
19460.......................... Decatur, AL............ 0.7261
Lawrence County, AL....
Morgan County, AL......
19500.......................... Decatur, IL............ 0.7993
Macon County, IL.......
19660.......................... Deltona-Daytona Beach- 0.8716
Ormond Beach, FL.
Volusia County, FL.....
19740.......................... Denver-Aurora- 1.0469
Broomfield, CO.
Adams County, CO.......
Arapahoe County, CO....
Broomfield County, CO..
Clear Creek County, CO.
Denver County, CO......
Douglas County, CO.....
Elbert County, CO......
Gilpin County, CO......
Jefferson County, CO...
Park County, CO........
19780.......................... Des Moines-West Des 0.9616
Moines, IA.
Dallas County, IA......
Guthrie County, IA.....
Madison County, IA.....
Polk County, IA........
Warren County, IA......
19804.......................... Detroit-Livonia- 0.9361
Dearborn, MI.
Wayne County, MI.......
20020.......................... Dothan, AL............. 0.7398
Geneva County, AL......
Henry County, AL.......
Houston County, AL.....
20100.......................... Dover, DE.............. 0.9893
Kent County, DE........
20220.......................... Dubuque, IA............ 0.8662
Dubuque County, IA.....
20260.......................... Duluth, MN-WI.......... 1.0741
Carlton County, MN.....
St. Louis County, MN...
Douglas County, WI.....
20500.......................... Durham-Chapel Hill, NC. 0.9525
Chatham County, NC.....
Durham County, NC......
Orange County, NC......
Person County, NC......
20740.......................... Eau Claire, WI......... 0.9705
Chippewa County, WI....
Eau Claire County, WI..
20764.......................... Edison-New Brunswick, 1.0806
NJ.
Middlesex County, NJ...
Monmouth County, NJ....
Ocean County, NJ.......
Somerset County, NJ....
20940.......................... El Centro, CA.......... 0.8602
Imperial County, CA....
21060.......................... Elizabethtown, KY...... 0.8294
Hardin County, KY......
Larue County, KY.......
21140.......................... Elkhart-Goshen, IN..... 0.9097
Elkhart County, IN.....
21300.......................... Elmira, NY............. 0.8205
Chemung County, NY.....
21340.......................... El Paso, TX............ 0.8426
El Paso County, TX.....
21500.......................... Erie, PA............... 0.7823
Erie County, PA........
21660.......................... Eugene-Springfield, OR. 1.1454
Lane County, OR........
[[Page 46239]]
21780.......................... Evansville, IN-KY...... 0.8401
Gibson County, IN......
Posey County, IN.......
Vanderburgh County, IN.
Warrick County, IN.....
Henderson County, KY...
Webster County, KY.....
21820.......................... Fairbanks, AK.......... 1.0816
Fairbanks North Star
Borough, AK.
21940.......................... Fajardo, PR............ 0.3663
Ceiba Municipio, PR....
Fajardo Municipio, PR..
Luquillo Municipio, PR.
22020.......................... Fargo, ND-MN........... 0.8108
Cass County, ND........
Clay County, MN........
22140.......................... Farmington, NM......... 0.9323
San Juan County, NM....
22180.......................... Fayetteville, NC....... 0.8971
Cumberland County, NC..
Hoke County, NC........
22220.......................... Fayetteville-Springdale- 0.9288
Rogers, AR-MO.
Benton County, AR......
Madison County, AR.....
Washington County, AR..
McDonald County, MO....
22380.......................... Flagstaff, AZ.......... 1.2369
Coconino County, AZ....
22420.......................... Flint, MI.............. 1.1257
Genesee County, MI.....
22500.......................... Florence, SC........... 0.8087
Darlington County, SC..
Florence County, SC....
22520.......................... Florence-Muscle Shoals, 0.7679
AL.
Colbert County, AL.....
Lauderdale County, AL..
22540.......................... Fond du Lac, WI........ 0.9158
Fond du Lac County, WI.
22660.......................... Fort Collins-Loveland, 0.9833
CO.
Larimer County, CO.....
22744.......................... Fort Lauderdale-Pompano 1.0363
Beach-Deerfield Beach,
FL.
Broward County, FL.....
22900.......................... Fort Smith, AR-OK...... 0.7848
Crawford County, AR....
Franklin County, AR....
Sebastian County, AR...
Le Flore County, OK....
Sequoyah County, OK....
23060.......................... Fort Wayne, IN......... 0.9633
Allen County, IN.......
Wells County, IN.......
Whitley County, IN.....
23104.......................... Fort Worth-Arlington, 0.9516
TX.
Johnson County, TX.....
Parker County, TX......
Tarrant County, TX.....
Wise County, TX........
23420.......................... Fresno, CA............. 1.1593
Fresno County, CA......
23460.......................... Gadsden, AL............ 0.7697
Etowah County, AL......
23540.......................... Gainesville, FL........ 0.9631
Alachua County, FL.....
Gilchrist County, FL...
23580.......................... Gainesville, GA........ 0.9327
Hall County, GA........
23844.......................... Gary, IN............... 0.9259
Jasper County, IN......
Lake County, IN........
Newton County, IN......
Porter County, IN......
[[Page 46240]]
24020.......................... Glens Falls, NY........ 0.8340
Warren County, NY......
Washington County, NY..
24140.......................... Goldsboro, NC.......... 0.8560
Wayne County, NC.......
24220.......................... Grand Forks, ND-MN..... 0.7250
Polk County, MN........
Grand Forks County, ND.
24300.......................... Grand Junction, CO..... 0.9415
Mesa County, CO........
24340.......................... Grand Rapids-Wyoming, 0.9125
MI.
Barry County, MI.......
Ionia County, MI.......
Kent County, MI........
Newaygo County, MI.....
24500.......................... Great Falls, MT........ 0.7927
Cascade County, MT.....
24540.......................... Greeley, CO............ 0.9593
Weld County, CO........
24580.......................... Green Bay, WI.......... 0.9793
Brown County, WI.......
Kewaunee County, WI....
Oconto County, WI......
24660.......................... Greensboro-High Point, 0.8638
NC.
Guilford County, NC....
Randolph County, NC....
Rockingham County, NC..
24780.......................... Greenville, NC......... 0.9694
Greene County, NC......
Pitt County, NC........
24860.......................... Greenville-Mauldin- 0.9737
Easley, SC.
Greenville County, SC..
Laurens County, SC.....
Pickens County, SC.....
25020.......................... Guayama, PR............ 0.3696
Arroyo Municipio, PR...
Guayama Municipio, PR..
Patillas Municipio, PR.
25060.......................... Gulfport-Biloxi, MS.... 0.8544
Hancock County, MS.....
Harrison County, MS....
Stone County, MS.......
25180.......................... Hagerstown-Martinsburg, 0.9422
MD-WV.
Washington County, MD..
Berkeley County, WV....
Morgan County, WV......
25260.......................... Hanford-Corcoran, CA... 1.0992
Kings County, CA.......
25420.......................... Harrisburg-Carlisle, PA 0.9525
Cumberland County, PA..
Dauphin County, PA.....
Perry County, PA.......
25500.......................... Harrisonburg, VA....... 0.9087
Rockingham County, VA..
Harrisonburg City, VA..
25540.......................... Hartford-West Hartford- 1.0869
East Hartford, CT.
Hartford County, CT....
Middlesex County, CT...
Tolland County, CT.....
25620.......................... Hattiesburg, MS........ 0.8035
Forrest County, MS.....
Lamar County, MS.......
Perry County, MS.......
25860.......................... Hickory-Lenoir- 0.8677
Morganton, NC.
Alexander County, NC...
Burke County, NC.......
Caldwell County, NC....
Catawba County, NC.....
25980.......................... Hinesville-Fort 0.8843
Stewart, GA\1\.
Liberty County, GA.....
Long County, GA........
[[Page 46241]]
26100.......................... Holland-Grand Haven, MI 0.8024
Ottawa County, MI......
26180.......................... Honolulu, HI........... 1.2156
Honolulu County, HI....
26300.......................... Hot Springs, AR........ 0.8944
Garland County, AR.....
26380.......................... Houma-Bayou Cane- 0.7928
Thibodaux, LA.
Lafourche Parish, LA...
Terrebonne Parish, LA..
26420.......................... Houston-Sugar Land- 0.9933
Baytown, TX.
Austin County, TX......
Brazoria County, TX....
Chambers County, TX....
Fort Bend County, TX...
Galveston County, TX...
Harris County, TX......
Liberty County, TX.....
Montgomery County, TX..
San Jacinto County, TX.
Waller County, TX......
26580.......................... Huntington-Ashland, WV- 0.8635
KY-OH.
Boyd County, KY........
Greenup County, KY.....
Lawrence County, OH....
Cabell County, WV......
Wayne County, WV.......
26620.......................... Huntsville, AL......... 0.8667
Limestone County, AL...
Madison County, AL.....
26820.......................... Idaho Falls, ID........ 0.9114
Bonneville County, ID..
Jefferson County, ID...
26900.......................... Indianapolis-Carmel, IN 0.9870
Boone County, IN.......
Brown County, IN.......
Hamilton County, IN....
Hancock County, IN.....
Hendricks County, IN...
Johnson County, IN.....
Marion County, IN......
Morgan County, IN......
Putnam County, IN......
Shelby County, IN......
26980.......................... Iowa City, IA.......... 1.0120
Johnson County, IA.....
Washington County, IA..
27060.......................... Ithaca, NY............. 0.9249
Tompkins County, NY....
27100.......................... Jackson, MI............ 0.8511
Jackson County, MI.....
27140.......................... Jackson, MS............ 0.8177
Copiah County, MS......
Hinds County, MS.......
Madison County, MS.....
Rankin County, MS......
Simpson County, MS.....
27180.......................... Jackson, TN............ 0.7672
Chester County, TN.....
Madison County, TN.....
27260.......................... Jacksonville, FL....... 0.8883
Baker County, FL.......
Clay County, FL........
Duval County, FL.......
Nassau County, FL......
St. Johns County, FL...
27340.......................... Jacksonville, NC....... 0.7957
Onslow County, NC......
27500.......................... Janesville, WI......... 0.9458
Rock County, WI........
[[Page 46242]]
27620.......................... Jefferson City, MO..... 0.8263
Callaway County, MO....
Cole County, MO........
Moniteau County, MO....
Osage County, MO.......
27740.......................... Johnson City, TN....... 0.7359
Carter County, TN......
Unicoi County, TN......
Washington County, TN..
27780.......................... Johnstown, PA.......... 0.8116
Cambria County, PA.....
27860.......................... Jonesboro, AR.......... 0.8084
Craighead County, AR...
Poinsett County, AR....
27900.......................... Joplin, MO............. 0.7828
Jasper County, MO......
Newton County, MO......
28020.......................... Kalamazoo-Portage, MI.. 0.9834
Kalamazoo County, MI...
Van Buren County, MI...
28100.......................... Kankakee-Bradley, IL... 1.0127
Kankakee County, IL....
28140.......................... Kansas City, MO-KS..... 0.9614
Franklin County, KS....
Johnson County, KS.....
Leavenworth County, KS.
Linn County, KS........
Miami County, KS.......
Wyandotte County, KS...
Bates County, MO.......
Caldwell County, MO....
Cass County, MO........
Clay County, MO........
Clinton County, MO.....
Jackson County, MO.....
Lafayette County, MO...
Platte County, MO......
Ray County, MO.........
28420.......................... Kennewick-Pasco- 0.9708
Richland, WA.
Benton County, WA......
Franklin County, WA....
28660.......................... Killeen-Temple-Fort 0.9102
Hood, TX.
Bell County, TX........
Coryell County, TX.....
Lampasas County, TX....
28700.......................... Kingsport-Bristol- 0.7325
Bristol, TN-VA.
Hawkins County, TN.....
Sullivan County, TN....
Bristol City, VA.......
Scott County, VA.......
Washington County, VA..
28740.......................... Kingston, NY........... 0.8953
Ulster County, NY......
28940.......................... Knoxville, TN.......... 0.7575
Anderson County, TN....
Blount County, TN......
Knox County, TN........
Loudon County, TN......
Union County, TN.......
29020.......................... Kokomo, IN............. 0.8756
Howard County, IN......
Tipton County, IN......
29100.......................... La Crosse, WI-MN....... 1.0070
Houston County, MN.....
La Crosse County, WI...
29140.......................... Lafayette, IN.......... 0.9316
Benton County, IN......
Carroll County, IN.....
Tippecanoe County, IN..
[[Page 46243]]
29180.......................... Lafayette, LA.......... 0.8565
Lafayette Parish, LA...
St. Martin Parish, LA..
29340.......................... Lake Charles, LA....... 0.7813
Calcasieu Parish, LA...
Cameron Parish, LA.....
29404.......................... Lake County-Kenosha 1.0558
County, IL-WI.
Lake County, IL........
Kenosha County, WI.....
29420.......................... Lake Havasu City- 0.9760
Kingman, AZ.
Mohave County, AZ......
29460.......................... Lakeland-Winter Haven, 0.8262
FL.
Polk County, FL........
29540.......................... Lancaster, PA.......... 0.9452
Lancaster County, PA...
29620.......................... Lansing-East Lansing, 1.0065
MI.
Clinton County, MI.....
Eaton County, MI.......
Ingham County, MI......
29700.......................... Laredo, TX............. 0.7486
Webb County, TX........
29740.......................... Las Cruces, NM......... 0.9044
Dona Ana County, NM....
29820.......................... Las Vegas-Paradise, NV. 1.2076
Clark County, NV.......
29940.......................... Lawrence, KS........... 0.8676
Douglas County, KS.....
30020.......................... Lawton, OK............. 0.8351
Comanche County, OK....
30140.......................... Lebanon, PA............ 0.7994
Lebanon County, PA.....
30300.......................... Lewiston, ID-WA........ 0.9326
Nez Perce County, ID...
Asotin County, WA......
30340.......................... Lewiston-Auburn, ME.... 0.9178
Androscoggin County, ME
30460.......................... Lexington-Fayette, KY.. 0.9023
Bourbon County, KY.....
Clark County, KY.......
Fayette County, KY.....
Jessamine County, KY...
Scott County, KY.......
Woodford County, KY....
30620.......................... Lima, OH............... 0.9226
Allen County, OH.......
30700.......................... Lincoln, NE............ 0.9726
Lancaster County, NE...
Seward County, NE......
30780.......................... Little Rock-North 0.8595
Little Rock-Conway, AR.
Faulkner County, AR....
Grant County, AR.......
Lonoke County, AR......
Perry County, AR.......
Pulaski County, AR.....
Saline County, AR......
30860.......................... Logan, UT-ID........... 0.8456
Franklin County, ID....
Cache County, UT.......
30980.......................... Longview, TX........... 0.8550
Gregg County, TX.......
Rusk County, TX........
Upshur County, TX......
31020.......................... Longview, WA........... 1.0081
Cowlitz County, WA.....
31084.......................... Los Angeles-Long Beach- 1.2293
Glendale, CA.
Los Angeles County, CA.
[[Page 46244]]
31140.......................... Louisville-Jefferson 0.8862
County, KY-IN.
Clark County, IN.......
Floyd County, IN.......
Harrison County, IN....
Washington County, IN..
Bullitt County, KY.....
Henry County, KY.......
Meade County, KY.......
Nelson County, KY......
Oldham County, KY......
Shelby County, KY......
Spencer County, KY.....
Trimble County, KY.....
31180.......................... Lubbock, TX............ 0.8870
Crosby County, TX......
Lubbock County, TX.....
31340.......................... Lynchburg, VA.......... 0.8615
Amherst County, VA.....
Appomattox County, VA..
Bedford County, VA.....
Campbell County, VA....
Bedford City, VA.......
Lynchburg City, VA.....
31420.......................... Macon, GA.............. 0.8584
Bibb County, GA........
Crawford County, GA....
Jones County, GA.......
Monroe County, GA......
Twiggs County, GA......
31460.......................... Madera-Chowchilla, CA.. 0.8050
Madera County, CA......
31540.......................... Madison, WI............ 1.1264
Columbia County, WI....
Dane County, WI........
Iowa County, WI........
31700.......................... Manchester-Nashua, NH.. 1.0042
Hillsborough County, NH
31740.......................... Manhattan, KS.......... 0.7839
Geary County, KS.......
Pottawatomie County, KS
Riley County, KS.......
31860.......................... Mankato-North Mankato, 0.9413
MN.
Blue Earth County, MN..
Nicollet County, MN....
31900.......................... Mansfield, OH.......... 0.8993
Richland County, OH....
32420.......................... Mayag[uuml]ez, PR...... 0.3586
Hormigueros Municipio,
PR.
Mayag[uuml]ez
Municipio, PR.
32580.......................... McAllen-Edinburg- 0.8603
Mission, TX.
Hidalgo County, TX.....
32780.......................... Medford, OR............ 1.0400
Jackson County, OR.....
32820.......................... Memphis, TN-MS-AR...... 0.9049
Crittenden County, AR..
DeSoto County, MS......
Marshall County, MS....
Tate County, MS........
Tunica County, MS......
Fayette County, TN.....
Shelby County, TN......
Tipton County, TN......
32900.......................... Merced, CA............. 1.2996
Merced County, CA......
33124.......................... Miami-Miami Beach- 1.0130
Kendall, FL.
Miami-Dade County, FL..
33140.......................... Michigan City-La Porte, 0.9694
IN.
LaPorte County, IN.....
33260.......................... Midland, TX............ 1.0640
Midland County, TX.....
[[Page 46245]]
33340.......................... Milwaukee-Waukesha-West 0.9931
Allis, WI.
Milwaukee County, WI...
Ozaukee County, WI.....
Washington County, WI..
Waukesha County, WI....
33460.......................... Minneapolis-St. Paul- 1.1336
Bloomington, MN-WI.
Anoka County, MN.......
Carver County, MN......
Chisago County, MN.....
Dakota County, MN......
Hennepin County, MN....
Isanti County, MN......
Ramsey County, MN......
Scott County, MN.......
Sherburne County, MN...
Washington County, MN..
Wright County, MN......
Pierce County, WI......
St. Croix County, WI...
33540.......................... Missoula, MT........... 0.9001
Missoula County, MT....
33660.......................... Mobile, AL............. 0.7467
Mobile County, AL......
33700.......................... Modesto, CA............ 1.2841
Stanislaus County, CA..
33740.......................... Monroe, LA............. 0.7717
Ouachita Parish, LA....
Union Parish, LA.......
33780.......................... Monroe, MI............. 0.8472
Monroe County, MI......
33860.......................... Montgomery, AL......... 0.7858
Autauga County, AL.....
Elmore County, AL......
Lowndes County, AL.....
Montgomery County, AL..
34060.......................... Morgantown, WV......... 0.8284
Monongalia County, WV..
Preston County, WV.....
34100.......................... Morristown, TN......... 0.6768
Grainger County, TN....
Hamblen County, TN.....
Jefferson County, TN...
34580.......................... Mount Vernon-Anacortes, 1.0340
WA.
Skagit County, WA......
34620.......................... Muncie, IN............. 0.8734
Delaware County, IN....
34740.......................... Muskegon-Norton Shores, 1.1007
MI.
Muskegon County, MI....
34820.......................... Myrtle Beach-North 0.8717
Myrtle Beach-Conway,
SC.
Horry County, SC.......
34900.......................... Napa, CA............... 1.6045
Napa County, CA........
34940.......................... Naples-Marco Island, FL 0.9265
Collier County, FL.....
34980.......................... Nashville-Davidson-- 0.9061
Murfreesboro-Franklin,
TN.
Cannon County, TN......
Cheatham County, TN....
Davidson County, TN....
Dickson County, TN.....
Hickman County, TN.....
Macon County, TN.......
Robertson County, TN...
Rutherford County, TN..
Smith County, TN.......
Sumner County, TN......
Trousdale County, TN...
Williamson County, TN..
Wilson County, TN......
35004.......................... Nassau-Suffolk, NY..... 1.2698
Nassau County, NY......
Suffolk County, NY.....
[[Page 46246]]
35084.......................... Newark-Union, NJ-PA.... 1.1223
Essex County, NJ.......
Hunterdon County, NJ...
Morris County, NJ......
Sussex County, NJ......
Union County, NJ.......
Pike County, PA........
35300.......................... New Haven-Milford, CT.. 1.2061
New Haven County, CT...
35380.......................... New Orleans-Metairie- 0.8932
Kenner, LA.
Jefferson Parish, LA...
Orleans Parish, LA.....
Plaquemines Parish, LA.
St. Bernard Parish, LA.
St. Charles Parish, LA.
St. John the Baptist
Parish, LA.
St. Tammany Parish, LA.
35644.......................... New York-White Plains- 1.2914
Wayne, NY-NJ.
Bergen County, NJ......
Hudson County, NJ......
Passaic County, NJ.....
Bronx County, NY.......
Kings County, NY.......
New York County, NY....
Putnam County, NY......
Queens County, NY......
Richmond County, NY....
Rockland County, NY....
Westchester County, NY.
35660.......................... Niles-Benton Harbor, MI 0.8237
Berrien County, MI.....
35840.......................... North Port-Bradenton- 0.9375
Sarasota-Venice, FL.
Manatee County, FL.....
Sarasota County, FL....
35980.......................... Norwich-New London, CT. 1.1376
New London County, CT..
36084.......................... Oakland-Fremont- 1.6654
Hayward, CA.
Alameda County, CA.....
Contra Costa County, CA
36100.......................... Ocala, FL.............. 0.8455
Marion County, FL......
36140.......................... Ocean City, NJ......... 1.0307
Cape May County, NJ....
36220.......................... Odessa, TX............. 0.9741
Ector County, TX.......
36260.......................... Ogden-Clearfield, UT... 0.9031
Davis County, UT.......
Morgan County, UT......
Weber County, UT.......
36420.......................... Oklahoma City, OK...... 0.8810
Canadian County, OK....
Cleveland County, OK...
Grady County, OK.......
Lincoln County, OK.....
Logan County, OK.......
McClain County, OK.....
Oklahoma County, OK....
36500.......................... Olympia, WA............ 1.1397
Thurston County, WA....
36540.......................... Omaha-Council Bluffs, 1.0037
NE-IA.
Harrison County, IA....
Mills County, IA.......
Pottawattamie County,
IA.
Cass County, NE........
Douglas County, NE.....
Sarpy County, NE.......
Saunders County, NE....
Washington County, NE..
[[Page 46247]]
36740.......................... Orlando-Kissimmee, FL.. 0.9082
Lake County, FL........
Orange County, FL......
Osceola County, FL.....
Seminole County, FL....
36780.......................... Oshkosh-Neenah, WI..... 0.9433
Winnebago County, WI...
36980.......................... Owensboro, KY.......... 0.8117
Daviess County, KY.....
Hancock County, KY.....
McLean County, KY......
37100.......................... Oxnard-Thousand Oaks- 1.3079
Ventura, CA.
Ventura County, CA.....
37340.......................... Palm Bay-Melbourne- 0.8838
Titusville, FL.
Brevard County, FL.....
37380.......................... Palm Coast, FL......... 0.9880
Flagler County, FL.....
37460.......................... Panama City-Lynn Haven- 0.7976
Panama City Beach, FL.
Bay County, FL.........
37620.......................... Parkersburg-Marietta- 0.7487
Vienna, WV-OH.
Washington County, OH..
Pleasants County, WV...
Wirt County, WV........
Wood County, WV........
37700.......................... Pascagoula, MS......... 0.7662
George County, MS......
Jackson County, MS.....
37764.......................... Peabody, MA............ 1.0551
Essex County, MA.......
37860.......................... Pensacola-Ferry Pass- 0.7819
Brent, FL.
Escambia County, FL....
Santa Rosa County, FL..
37900.......................... Peoria, IL............. 0.8882
Marshall County, IL....
Peoria County, IL......
Stark County, IL.......
Tazewell County, IL....
Woodford County, IL....
37964.......................... Philadelphia, PA....... 1.0806
Bucks County, PA.......
Chester County, PA.....
Delaware County, PA....
Montgomery County, PA..
Philadelphia County, PA
38060.......................... Phoenix-Mesa- 1.0477
Scottsdale, AZ.
Maricopa County, AZ....
Pinal County, AZ.......
38220.......................... Pine Bluff, AR......... 0.7847
Cleveland County, AR...
Jefferson County, AR...
Lincoln County, AR.....
38300.......................... Pittsburgh, PA......... 0.8585
Allegheny County, PA...
Armstrong County, PA...
Beaver County, PA......
Butler County, PA......
Fayette County, PA.....
Washington County, PA..
Westmoreland County, PA
38340.......................... Pittsfield, MA......... 1.0721
Berkshire County, MA...
38540.......................... Pocatello, ID.......... 0.9555
Bannock County, ID.....
Power County, ID.......
38660.......................... Ponce, PR.............. 0.4314
Juana D[iacute]az
Municipio, PR.
Ponce Municipio, PR....
Villalba Municipio, PR.
[[Page 46248]]
38860.......................... Portland-South Portland- 0.9975
Biddeford, ME.
Cumberland County, ME..
Sagadahoc County, ME...
York County, ME........
38900.......................... Portland-Vancouver- 1.1673
Beaverton, OR-WA.
Clackamas County, OR...
Columbia County, OR....
Multnomah County, OR...
Washington County, OR..
Yamhill County, OR.....
Clark County, WA.......
Skamania County, WA....
38940.......................... Port St. Lucie, FL..... 0.9577
Martin County, FL......
St. Lucie County, FL...
39100.......................... Poughkeepsie-Newburgh- 1.1325
Middletown, NY.
Dutchess County, NY....
Orange County, NY......
39140.......................... Prescott, AZ........... 1.2009
Yavapai County, AZ.....
39300.......................... Providence-New Bedford- 1.0699
Fall River, RI-MA.
Bristol County, MA.....
Bristol County, RI.....
Kent County, RI........
Newport County, RI.....
Providence County, RI..
Washington County, RI..
39340.......................... Provo-Orem, UT......... 0.9133
Juab County, UT........
Utah County, UT........
39380.......................... Pueblo, CO............. 0.8518
Pueblo County, CO......
39460.......................... Punta Gorda, FL........ 0.8590
Charlotte County, FL...
39540.......................... Racine, WI............. 0.9158
Racine County, WI......
39580.......................... Raleigh-Cary, NC....... 0.9488
Franklin County, NC....
Johnston County, NC....
Wake County, NC........
39660.......................... Rapid City, SD......... 0.9823
Meade County, SD.......
Pennington County, SD..
39740.......................... Reading, PA............ 0.9072
Berks County, PA.......
39820.......................... Redding, CA............ 1.4555
Shasta County, CA......
39900.......................... Reno-Sparks, NV........ 1.0328
Storey County, NV......
Washoe County, NV......
[[Page 46249]]
40060.......................... Richmond, VA........... 0.9695
Amelia County, VA......
Caroline County, VA....
Charles City County, VA
Chesterfield County, VA
Cumberland County, VA..
Dinwiddie County, VA...
Goochland County, VA...
Hanover County, VA.....
Henrico County, VA.....
King and Queen County,
VA.
King William County, VA
Louisa County, VA......
New Kent County, VA....
Powhatan County, VA....
Prince George County,
VA.
Sussex County, VA......
Colonial Heights City,
VA.
Hopewell City, VA......
Petersburg City, VA....
Richmond City, VA......
40140.......................... Riverside-San 1.1396
Bernardino-Ontario, CA.
Riverside County, CA...
San Bernardino County,
CA.
40220.......................... Roanoke, VA............ 0.9088
Botetourt County, VA...
Craig County, VA.......
Franklin County, VA....
Roanoke County, VA.....
Roanoke City, VA.......
Salem City, VA.........
40340.......................... Rochester, MN.......... 1.0708
Dodge County, MN.......
Olmsted County, MN.....
Wabasha County, MN.....
40380.......................... Rochester, NY.......... 0.8704
Livingston County, NY..
Monroe County, NY......
Ontario County, NY.....
Orleans County, NY.....
Wayne County, NY.......
40420.......................... Rockford, IL........... 0.9935
Boone County, IL.......
Winnebago County, IL...
40484.......................... Rockingham County- 1.0234
Strafford County, NH.
Rockingham County, NH..
Strafford County, NH...
40580.......................... Rocky Mount, NC........ 0.8898
Edgecombe County, NC...
Nash County, NC........
40660.......................... Rome, GA............... 0.8844
Floyd County, GA.......
40900.......................... Sacramento-Arden-Arcade- 1.4752
Roseville, CA.
El Dorado County, CA...
Placer County, CA......
Sacramento County, CA..
Yolo County, CA........
40980.......................... Saginaw-Saginaw 0.8820
Township North, MI.
Saginaw County, MI.....
41060.......................... St. Cloud, MN.......... 1.1010
Benton County, MN......
Stearns County, MN.....
41100.......................... St. George, UT......... 0.8870
Washington County, UT..
41140.......................... St. Joseph, MO-KS...... 0.9856
Doniphan County, KS....
Andrew County, MO......
Buchanan County, MO....
DeKalb County, MO......
[[Page 46250]]
41180.......................... St. Louis, MO-IL....... 0.9420
Bond County, IL........
Calhoun County, IL.....
Clinton County, IL.....
Jersey County, IL......
Macoupin County, IL....
Madison County, IL.....
Monroe County, IL......
St. Clair County, IL...
Crawford County, MO....
Franklin County, MO....
Jefferson County, MO...
Lincoln County, MO.....
St. Charles County, MO.
St. Louis County, MO...
Warren County, MO......
Washington County, MO..
St. Louis City, MO.....
41420.......................... Salem, OR.............. 1.1069
Marion County, OR......
Polk County, OR........
41500.......................... Salinas, CA............ 1.6074
Monterey County, CA....
41540.......................... Salisbury, MD.......... 0.9260
Somerset County, MD....
Wicomico County, MD....
41620.......................... Salt Lake City, UT..... 0.9063
Salt Lake County, UT...
Summit County, UT......
Tooele County, UT......
41660.......................... San Angelo, TX......... 0.8221
Irion County, TX.......
Tom Green County, TX...
41700.......................... San Antonio, TX........ 0.8936
Atascosa County, TX....
Bandera County, TX.....
Bexar County, TX.......
Comal County, TX.......
Guadalupe County, TX...
Kendall County, TX.....
Medina County, TX......
Wilson County, TX......
41740.......................... San Diego-Carlsbad-San 1.1922
Marcos, CA.
San Diego County, CA...
41780.......................... Sandusky, OH........... 0.8347
Erie County, OH........
41884.......................... San Francisco-San Mateo- 1.6327
Redwood City, CA.
Marin County, CA.......
San Francisco County,
CA.
San Mateo County, CA...
41900.......................... San Germ[aacute]n-Cabo 0.4804
Rojo, PR.
Cabo Rojo Municipio, PR
Lajas Municipio, PR....
Sabana Grande
Municipio, PR.
San Germ[aacute]n
Municipio, PR.
41940.......................... San Jose-Sunnyvale- 1.7396
Santa Clara, CA.
San Benito County, CA..
Santa Clara County, CA.
[[Page 46251]]
41980.......................... San Juan-Caguas- 0.4318
Guaynabo, PR.
Aguas Buenas Municipio,
PR.
Aibonito Municipio, PR.
Arecibo Municipio, PR..
Barceloneta Municipio,
PR.
Barranquitas Municipio,
PR.
Bayam[oacute]n
Municipio, PR.
Caguas Municipio, PR...
Camuy Municipio, PR....
Can[oacute]vanas
Municipio, PR.
Carolina Municipio, PR.
Cata[ntilde]o
Municipio, PR.
Cayey Municipio, PR....
Ciales Municipio, PR...
Cidra Municipio, PR....
Comer[iacute]o
Municipio, PR.
Corozal Municipio, PR..
Dorado Municipio, PR...
Florida Municipio, PR..
Guaynabo Municipio, PR.
Gurabo Municipio, PR...
Hatillo Municipio, PR..
Humacao Municipio, PR..
Juncos Municipio, PR...
Las Piedras Municipio,
PR.
Lo[iacute]za Municipio,
PR.
Manat[iacute]
Municipio, PR.
Maunabo Municipio, PR..
Morovis Municipio, PR..
Naguabo Municipio, PR..
Naranjito Municipio, PR
Orocovis Municipio, PR.
Quebradillas Municipio,
PR.
R[iacute]o Grande
Municipio, PR.
San Juan Municipio, PR.
San Lorenzo Municipio,
PR.
Toa Alta Municipio, PR.
Toa Baja Municipio, PR.
Trujillo Alto
Municipio, PR.
Vega Alta Municipio, PR
Vega Baja Municipio, PR
Yabucoa Municipio, PR..
42020.......................... San Luis Obispo-Paso 1.3081
Robles, CA.
San Luis Obispo County,
CA.
42044.......................... Santa Ana-Anaheim- 1.2038
Irvine, CA.
Orange County, CA......
42060.......................... Santa Barbara-Santa 1.2670
Maria-Goleta, CA.
Santa Barbara County,
CA.
42100.......................... Santa Cruz-Watsonville, 1.8062
CA.
Santa Cruz County, CA..
42140.......................... Santa Fe, NM........... 1.0400
Santa Fe County, NM....
42220.......................... Santa Rosa-Petaluma, CA 1.6440
Sonoma County, CA......
42340.......................... Savannah, GA........... 0.8968
Bryan County, GA.......
Chatham County, GA.....
Effingham County, GA...
42540.......................... Scranton--Wilkes-Barre, 0.8260
PA.
Lackawanna County, PA..
Luzerne County, PA.....
Wyoming County, PA.....
42644.......................... Seattle-Bellevue- 1.1771
Everett, WA.
King County, WA........
Snohomish County, WA...
42680.......................... Sebastian-Vero Beach, 0.8850
FL.
Indian River County, FL
43100.......................... Sheboygan, WI.......... 0.9515
Sheboygan County, WI...
[[Page 46252]]
43300.......................... Sherman-Denison, TX.... 0.8544
Grayson County, TX.....
43340.......................... Shreveport-Bossier 0.8412
City, LA.
Bossier Parish, LA.....
Caddo Parish, LA.......
De Soto Parish, LA.....
43580.......................... Sioux City, IA-NE-SD... 0.9010
Woodbury County, IA....
Dakota County, NE......
Dixon County, NE.......
Union County, SD.......
43620.......................... Sioux Falls, SD........ 0.8338
Lincoln County, SD.....
McCook County, SD......
Minnehaha County, SD...
Turner County, SD......
43780.......................... South Bend-Mishawaka, 0.9531
IN-MI.
St. Joseph County, IN..
Cass County, MI........
43900.......................... Spartanburg, SC........ 0.9186
Spartanburg County, SC.
44060.......................... Spokane, WA............ 1.0824
Spokane County, WA.....
44100.......................... Springfield, IL........ 0.9179
Menard County, IL......
Sangamon County, IL....
44140.......................... Springfield, MA........ 1.0377
Franklin County, MA....
Hampden County, MA.....
Hampshire County, MA...
44180.......................... Springfield, MO........ 0.8581
Christian County, MO...
Dallas County, MO......
Greene County, MO......
Polk County, MO........
Webster County, MO.....
44220.......................... Springfield, OH........ 0.9236
Clark County, OH.......
44300.......................... State College, PA...... 0.9510
Centre County, PA......
44600.......................... Steubenville-Weirton, 0.7640
OH-WV.
Jefferson County, OH...
Brooke County, WV......
Hancock County, WV.....
44700.......................... Stockton, CA........... 1.3356
San Joaquin County, CA.
44940.......................... Sumter, SC............. 0.7454
Sumter County, SC......
45060.......................... Syracuse, NY........... 0.9829
Madison County, NY.....
Onondaga County, NY....
Oswego County, NY......
45104.......................... Tacoma, WA............. 1.1741
Pierce County, WA......
45220.......................... Tallahassee, FL........ 0.8521
Gadsden County, FL.....
Jefferson County, FL...
Leon County, FL........
Wakulla County, FL.....
45300.......................... Tampa-St. Petersburg- 0.9032
Clearwater, FL.
Hernando County, FL....
Hillsborough County, FL
Pasco County, FL.......
Pinellas County, FL....
45460.......................... Terre Haute, IN........ 0.9113
Clay County, IN........
Sullivan County, IN....
Vermillion County, IN..
Vigo County, IN........
[[Page 46253]]
45500.......................... Texarkana, TX- 0.7967
Texarkana, AR.
Miller County, AR......
Bowie County, TX.......
45780.......................... Toledo, OH............. 0.9034
Fulton County, OH......
Lucas County, OH.......
Ottawa County, OH......
Wood County, OH........
45820.......................... Topeka, KS............. 0.8969
Jackson County, KS.....
Jefferson County, KS...
Osage County, KS.......
Shawnee County, KS.....
Wabaunsee County, KS...
45940.......................... Trenton-Ewing, NJ...... 1.0360
Mercer County, NJ......
46060.......................... Tucson, AZ............. 0.9065
Pima County, AZ........
46140.......................... Tulsa, OK.............. 0.8139
Creek County, OK.......
Okmulgee County, OK....
Osage County, OK.......
Pawnee County, OK......
Rogers County, OK......
Tulsa County, OK.......
Wagoner County, OK.....
46220.......................... Tuscaloosa, AL......... 0.8533
Greene County, AL......
Hale County, AL........
Tuscaloosa County, AL..
46340.......................... Tyler, TX.............. 0.8361
Smith County, TX.......
46540.......................... Utica-Rome, NY......... 0.8653
Herkimer County, NY....
Oneida County, NY......
46660.......................... Valdosta, GA........... 0.7918
Brooks County, GA......
Echols County, GA......
Lanier County, GA......
Lowndes County, GA.....
46700.......................... Vallejo-Fairfield, CA.. 1.5844
Solano County, CA......
47020.......................... Victoria, TX........... 0.8992
Calhoun County, TX.....
Goliad County, TX......
Victoria County, TX....
47220.......................... Vineland-Millville- 1.0596
Bridgeton, NJ.
Cumberland County, NJ..
47260.......................... Virginia Beach-Norfolk- 0.9208
Newport News, VA-NC.
Currituck County, NC...
Gloucester County, VA..
Isle of Wight County,
VA.
James City County, VA..
Mathews County, VA.....
Surry County, VA.......
York County, VA........
Chesapeake City, VA....
Hampton City, VA.......
Newport News City, VA..
Norfolk City, VA.......
Poquoson City, VA......
Portsmouth City, VA....
Suffolk City, VA.......
Virginia Beach City, VA
Williamsburg City, VA..
47300.......................... Visalia-Porterville, CA 1.0349
Tulare County, CA......
47380.......................... Waco, TX............... 0.8458
McLennan County, TX....
[[Page 46254]]
47580.......................... Warner Robins, GA...... 0.8197
Houston County, GA.....
47644.......................... Warren-Troy-Farmington 0.9543
Hills, MI.
Lapeer County, MI......
Livingston County, MI..
Macomb County, MI......
Oakland County, MI.....
St. Clair County, MI...
47894.......................... Washington-Arlington- 1.0659
Alexandria, DC-VA-MD-
WV.
District of Columbia,
DC.
Calvert County, MD.....
Charles County, MD.....
Prince George's County,
MD.
Arlington County, VA...
Clarke County, VA......
Fairfax County, VA.....
Fauquier County, VA....
Loudoun County, VA.....
Prince William County,
VA.
Spotsylvania County, VA
Stafford County, VA....
Warren County, VA......
Alexandria City, VA....
Fairfax City, VA.......
Falls Church City, VA..
Fredericksburg City, VA
Manassas City, VA......
Manassas Park City, VA.
Jefferson County, WV...
47940.......................... Waterloo-Cedar Falls, 0.8422
IA.
Black Hawk County, IA..
Bremer County, IA......
Grundy County, IA......
48140.......................... Wausau, WI............. 0.8921
Marathon County, WI....
48300.......................... Wenatchee-East 1.0037
Wenatchee, WA.
Chelan County, WA......
Douglas County, WA.....
48424.......................... West Palm Beach-Boca 0.9661
Raton-Boynton Beach,
FL.
Palm Beach County, FL..
48540.......................... Wheeling, WV-OH........ 0.6863
Belmont County, OH.....
Marshall County, WV....
Ohio County, WV........
48620.......................... Wichita, KS............ 0.8681
Butler County, KS......
Harvey County, KS......
Sedgwick County, KS....
Sumner County, KS......
48660.......................... Wichita Falls, TX...... 0.9048
Archer County, TX......
Clay County, TX........
Wichita County, TX.....
48700.......................... Williamsport, PA....... 0.8230
Lycoming County, PA....
48864.......................... Wilmington, DE-MD-NJ... 1.0687
New Castle County, DE..
Cecil County, MD.......
Salem County, NJ.......
48900.......................... Wilmington, NC......... 0.9155
Brunswick County, NC...
New Hanover County, NC.
Pender County, NC......
49020.......................... Winchester, VA-WV...... 0.9249
Frederick County, VA...
Winchester City, VA....
Hampshire County, WV...
[[Page 46255]]
49180.......................... Winston-Salem, NC...... 0.8660
Davie County, NC.......
Forsyth County, NC.....
Stokes County, NC......
Yadkin County, NC......
49340.......................... Worcester, MA.......... 1.1205
Worcester County, MA...
49420.......................... Yakima, WA............. 1.0097
Yakima County, WA......
49500.......................... Yauco, PR.............. 0.4059
Gu[aacute]nica
Municipio, PR.
Guayanilla Municipio,
PR.
Pe[ntilde]uelas
Municipio, PR.
Yauco Municipio, PR....
49620.......................... York-Hanover, PA....... 0.9557
York County, PA........
49660.......................... Youngstown-Warren- 0.8283
Boardman, OH-PA.
Mahoning County, OH....
Trumbull County, OH....
Mercer County, PA......
49700.......................... Yuba City, CA \1\...... 1.2004
Sutter County, CA......
Yuba County, CA........
49740.......................... Yuma, AZ............... 0.9517
Yuma County, AZ........
------------------------------------------------------------------------
\1\ At this time, there are no hospitals located in this urban area on
which to base a wage index.
Table B--FY 2013 Wage Index Based on CBSA Labor Market Areas for Rural
Areas
------------------------------------------------------------------------
State code Nonurban area Wage index
------------------------------------------------------------------------
1.......................... Alabama...................... 0.7121
2.......................... Alaska....................... 1.2807
3.......................... Arizona...................... 0.9182
4.......................... Arkansas..................... 0.7350
5.......................... California................... 1.2567
6.......................... Colorado..................... 1.0208
7.......................... Connecticut.................. 1.1128
8.......................... Delaware..................... 1.0171
10.......................... Florida...................... 0.8062
11.......................... Georgia...................... 0.7421
12.......................... Hawaii....................... 1.0728
13.......................... Idaho........................ 0.7583
14.......................... Illinois..................... 0.8438
15.......................... Indiana...................... 0.8472
16.......................... Iowa......................... 0.8351
17.......................... Kansas....................... 0.7997
18.......................... Kentucky..................... 0.7877
19.......................... Louisiana.................... 0.7718
20.......................... Maine........................ 0.8300
21.......................... Maryland..................... 0.8797
22.......................... Massachusetts................ 1.3540
23.......................... Michigan..................... 0.8387
24.......................... Minnesota.................... 0.9053
25.......................... Mississippi.................. 0.7537
26.......................... Missouri..................... 0.7622
27.......................... Montana...................... 0.8600
28.......................... Nebraska..................... 0.8733
29.......................... Nevada....................... 0.9739
30.......................... New Hampshire................ 1.0372
31.......................... New Jersey \1\............... ...........
32.......................... New Mexico................... 0.8879
33.......................... New York..................... 0.8199
34.......................... North Carolina............... 0.8271
35.......................... North Dakota................. 0.6891
36.......................... Ohio......................... 0.8470
37.......................... Oklahoma..................... 0.7783
38.......................... Oregon....................... 0.9500
39.......................... Pennsylvania................. 0.8380
40.......................... Puerto Rico \1\.............. 0.4047
41.......................... Rhode Island \1\............. ...........
42.......................... South Carolina............... 0.8338
43.......................... South Dakota................. 0.8124
44.......................... Tennessee.................... 0.7559
45.......................... Texas........................ 0.7978
46.......................... Utah......................... 0.8516
47.......................... Vermont...................... 0.9725
48.......................... Virgin Islands............... 0.7185
49.......................... Virginia..................... 0.7728
50.......................... Washington................... 1.0092
51.......................... West Virginia................ 0.7333
52.......................... Wisconsin.................... 0.9142
53.......................... Wyoming...................... 0.9238
65.......................... Guam......................... 0.9611
------------------------------------------------------------------------
\1\ All counties within the State are classified as urban, with the
exception of Puerto Rico. Puerto Rico has areas designated as rural;
however, no short-term, acute care hospitals are located in the
area(s) for FY 2013. The Puerto Rico wage index is the same as FY
2012.
[FR Doc. 2012-18719 Filed 7-27-12; 4:15 pm]
BILLING CODE P