---
kind: "section"
citation: "42 C.F.R. § 413.335"
title: "42"
number: "413.335"
heading: "Basis of payment."
url: "https://uscodex.org/cfr/42/413.335"
---

# §413.335. Basis of payment.

- (a) **Method of payment.** Under the prospective payment system, SNFs receive a per diem payment of a predetermined rate for inpatient services furnished to Medicare beneficiaries. The per diem payments are made on the basis of the Federal payment rate described in [§ 413.337](/cfr/42/413.337.md) and, during a transition period, on the basis of a blend of the Federal rate and the facility-specific rate described in [§ 413.340](/cfr/42/413.340.md). These per diem payment rates are determined according to the methodology described in §§ [413.337](/cfr/42/413.337.md) and [413.340](/cfr/42/413.340.md).
- (b) **Payment in full.**
  - (1) The payment rates represent payment in full (subject to applicable coinsurance as described in [subpart G of part 409](/cfr/42/part409-subpartG.md) of this chapter) for all costs (routine, ancillary, and capital-related) associated with furnishing inpatient SNF services to Medicare beneficiaries other than costs associated with approved educational activities as described in [§ 413.85](/cfr/42/413.85.md).
  - (2) In addition to the Federal per diem payment amounts, SNFs receive payment for bad debts of Medicare beneficiaries, as specified in [§ 413.89](/cfr/42/413.89.md) of this part.

## Notes

### Amendments

[63 FR 26309, May 12, 1998, as amended at 73 FR 46440, Aug. 8, 2008]

### Source

Source: 63 FR 26309, May 12, 1998, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302, 1395d(d), 1395f(b), 1395g, 1395l(a), (i), and (n), 1395m, 1395x(v), 1395x(kkk), 1395hh, 1395rr, 1395tt, and 1395ww.

### Source

Source: 51 FR 34793, Sept. 30, 1986, unless otherwise noted.

### Amendments

[63 FR 26309, May 12, 1998, as amended at 73 FR 46440, Aug. 8, 2008]