For many years, the Medicare Payment Advisory Commission has reported that the Medicare program overpays skilled nursing facilities (SNFs) for rehabilitation services and underpays SNFs for certain residents needing specialized services and skilled nursing care. Significant changes will be made to Medicare payment policy and rein in wasteful spending and overpayments. Many times SNFs are paid for services they do not provide. Additionally, the programs were supposed to be budget neutral, but SNFs placed more residents in the highest assessment categories which resulted in overpayments. To read more about the overpayment, please visit the center for Medicare advocacy’s website.