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TRICARE Reimbursement Manual 6010.64-M, April 2021
Skilled Nursing Facilities (SNFs)
Chapter 8
Addendum D
Example Of Computation of Adjusted Prospective Payment System (PPS) Rates And Skilled Nursing Facility (SNF) Payment
Revision:  
1.0  FISCAL YEAR (FY) 2018 FOR SERVICES RECEIVED PRIOR TO OCTOBER 1, 2019
Using the SNF XYZ, the following shows the adjustments made to the Federal per diem rate to compute the provider’s actual per diem PPS payment. SNF XYZ’s total PPS payment would equal $47,602.52.
SNF XYZ: Located In Frederick, MD (Urban CBSA 43524) Wage Index: 0.9869
RUG-IV
Group
Labor
Wage Index
Adj. Labor
Non-Labor
Adj. Rate
Percent Adj.
SNF Days
Payment
Source: 82 FR 46169; Medicare Program; Prospective Payment System and Consolidated Billing for Skilled Nursing Facilities For FY 2018.
RVX
$512.46
0.9869
$505.75
$211.35
$717.10
$717.10
14
$10,039.40
ES2
$411.47
0.9869
$406.08
$169.70
$575.78
$575.78
30
$17,273.40
RHA
$258.53
0.9869
$255.14
$106.63
$361.77
$361.77
16
$5,788.32
CC2*
$238.33
0.9869
$235.21
$98.29
$333.50
$760.38
10
$7,603.80
BA2
$164.31
0.9869
$162.16
$67.76
$229.92
$229.92
30
$6,897.60
100
$47,602.52
*  Reflects a 128% adjustment from section 511 of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003.
2.0  FISCAL YEAR (FY) 2019 FOR SERVICES RECEIVED PRIOR TO OCTOBER 1, 2020
Using the SNF XYZ, the following shows the adjustments made to the Federal per diem rate to compute the provider’s actual per diem PPS payment. SNF XYZ’s total PPS payment would equal $48,779.14.
SNF XYZ: Located In Frederick, MD (Urban CBSA 43524) Wage Index: 0.9880
RUG-IV
Group
Labor
Wage Index
Adj. Labor
Non-Labor
Adj. Rate
Percent Adj.
SNF Days
Payment
Source: 83 FR 39178; Medicare Program; Prospective Payment System and Consolidated Billing for Skilled Nursing Facilities For FY 2019.
RVX
$522.48
0.9880
$516.21
$218.62
$734.83
$734.83
14
$10,287.62
ES2
$419.50
0.9880
$414.47
$175.54
$590.01
$590.01
30
$17,700.30
RHA
$263.59
0.9880
$260.43
$110.29
$370.72
$370.72
16
$5,931.52
CC2*
$242.99
0.9880
$240.07
$101.67
$341.74
$779.17
10
$7,791.70
BA2
$167.52
0.9880
$165.51
$70.09
$235.60
$235.60
30
$7,068.00
100
$48,779.14
*  Reflects a 128% adjustment from section 511 of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003.
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