Nursing home industry decries poor timing of proposed Medicare cuts

Nursing homes are steeling for a $320 million Medicare pay cut they say will make it harder to deliver care during an already challenging time.

The Centers for Medicare and Medicaid Services published a proposed rule Tuesday that would reduce Medicare Part A reimbursements for fiscal 2023 to make up for what the agency characterized as unintentionally high pay rates in fiscal 2020.

The agency's adjustment to nursing home pay also coincides with President Joe Biden pushing a wide-ranging slate of proposals to transform the industry.

Reducing Medicare pay at the same time the Biden administration is seeking policies such as minimum staffing requirements and stronger safety and quality rules creates a "paradox" for the industry, said Shara Siegel, director of government affairs at Premier. "They're cutting funding for providers, but they also have these expectations in these other areas," she said.

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