Health Care Financing Administration--Medicaid program; payments for long-term care facility services. Final rule with request for additional comments

This final rule amends the regulation limiting Medicaid payments for long-term care facility services. Under the current regulations, Medicaid payments for skilled nursing facility (SNF) and intermediate care facility (ICF) services are subject to cost limits published under 42 CFR 405.460. On August 31, 1979, we published a schedule of limits on adjusted SNF inpatient routine service costs (44 FR 51542). Those limits apply to Medicare and Medicaid payments made under State plans that do not use the same payment method as Medicare. We are amending the current regulations to remove the requirement that Medicaid payments for SNF and ICF services be subject to the cost limits published under 405.460. We also are requesting additional comments on whether Medicaid payments for SNF and ICF services should be subject to those limits, to limits developed on a State-byState basis, or to limits derived by some other method. After we have analyzed the comments we receive, we will publish a notice that sets forth our position on this issue.