The BIGGEST change in SNF's Medicare reimbursement in eight years is about to be implemented. The SNF Medicare PPS rates will change TWICE in the near future, once on October 1, 2005 and again on January 1, 2006. The BIG change happens January 1, 2006. On January 1, 2006 the RUGIII system will change from a 44 group system to a 53 group system, an entirely new grouping system! In addition the rates in twenty six (26) of the existing categories will be CUT on January 1, 2006. The 14 rehab rates will be cut by 6.7% and the 12 "medical" rates (Extensive, Special Care and Clinically Complex) will be cut by 20%. The 9 new categories will have very high rates and you need to know how to take advantage of them to avoid dramatic Medicare cuts.