Which of the following is true about SNF reimbursement patterns?

• A. There is a decreasing daily rate
• B. There is a fixed annual rate
• C. There is no daily rate
• D. There is an increasing monthly rate

Answer: (A)

Medicare pays skilled nursing facilities on a per-diem basis under the SNF Prospective Payment System, and the daily payment changes over the course of a stay. The first portion of a stay has a higher daily rate to cover the more intensive care and rehabilitation typically needed in days 1–20, then the daily rate declines for days 21–100. This decreasing pattern reflects that resource use often tapers as a patient stabilizes, while still being adjusted by case mix through RUGs. A spell under Part A can cover up to 100 days, after which coverage ends unless a new spell begins. So the true statement is that there is a decreasing daily rate. Fixed annual rates or increasing monthly rates don’t apply, and there is indeed a daily rate in SNF reimbursement.