Skilled Nursing Facilities (SNFs) and Nursing Facilities (NFs)

20.5.2 - Skilled Nursing Facilities (SNFs) and Nursing Facilities (NFs) (Rev. 1502; Issued: 05-09-08; Effective/Implementation Date: 06-09-08) The Medicare DMEPOS Competitive Bidding Program applies to SNFs and NFs located in a CBA to the extent their residents receive competitively bid items under Medicare Part B. Unlike most suppliers, SNFs and NFs have the option to bid for, and be awarded, contracts to be “specialty suppliers” that only furnish competitively bid items to their own residents. SNFs and NFs may elect to submit a bid as a specialty supplier by indicating on the RFB that they will only furnish competitive bid items to their own residents. Any SNF or NF awarded a contract would be paid the single payment amount for those items. SNFs and NFs that elect to be specialty suppliers may not furnish competitively bid items and services to Medicare beneficiaries outside their facilities for purposes of Medicare payment. If a SNF or NF is not awarded a contract, it must use a contract supplier for the CBA to furnish competitively bid items to its residents. SNFs and NFs can also become regular contract suppliers that furnish competitively bid items to beneficiaries throughout a CBA. If a SNF or NF is not a contract supplier (either a specialty contract supplier or a regular contract supplier), it must use a contract supplier for its CBA to furnish competitively bid items to its residents.