On August 6, 2013, CMS published a final rule to update Medicare skilled nursing facility (SNF) PPS rates for FY 2014 and make other updates to SNF reimbursement policy. CMS estimates that the final rule will increase aggregate Medicare payments to SNFs in FY 2014 by $470 million, or 1.3%, compared to FY 2013 rates. Specifically, SNF PPS rates will be updated to reflect a 2.3% market basket increase, but that update is reduced by a 0.5 percentage point multifactor productivity adjustment required by the ACA, and further reduced by a 0.5 percentage point forecast error correction (resulting from a technical change in the methodology for determining whether to make a forecast error correction when the difference between the actual and projected market basket percentage change rounds to 0.5%). CMS also adopted its proposals to rebase the SNF market basket to reflect FY 2010 data, rather than data from FY 2004, and to change the components of the SNF market basket index. With regard to therapy services, CMS is adding an item to the Minimum Data Set (MDS) to record the number of distinct calendar days of therapy provided to a beneficiary by all rehabilitation disciplines over the 7-day look-back period, and to specify the number of calendar days of therapy required to qualify for the Medium Rehab (RM) and Low Rehab (RL) Category Resource Utilization Group (RUG). The rule is effective October 1, 2013.