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Skilled nursing facilities (SNF) receive an annual Medicare "market basket" adjustment that reflects changes in the costs of providing quality care to beneficiaries. Approximately 70 percent of SNF costs relate to staffing. To ensure "program efficiency, quality and sustainability," the Centers for Medicare and Medicaid Services (CMS) determined SNF cost changes justify a 3.3 percent increase in fiscal 2008. This market basket increase went into effect on October 1, 2007. However, the House of Representatives passed legislation earlier this year that would eliminate this adjustment in 2008 - cutting $2.7 billion in Medicare funding for seniors in nursing homes over five years, according to the Congressional Budget Office (CBO).
As Congress returns to Washington on December 3rd to finally resolve this key health care policy matter, Congress should ensure that the 3.3 percent funding adjustment is preserved.
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