SEC. 1101. SKILLED NURSING FACILITY PAYMENT UPDATE.

[a] In General- Section- 1888[e][4][E][ii] of the Social Security Act [42 U.S.C. 1395yy[e][4][E][ii]] is amended--

[1] in subclause [III], by striking 'and' at the end;

[2] by redesignating subclause [IV] as subclause [VI]; and

[3] by inserting after subclause [III] the following new subclauses:

'[IV] for each of fiscal years 2004 through 2009, the rate computed for the previous fiscal year increased by the skilled nursing facility market basket percentage change for the fiscal year involved;

'[V] for fiscal year 2010, the rate computed for the previous fiscal year; and'.

[b] Delayed Effective Date- Section- 1888[e][4][E][ii][V] of the Social Security Act, as inserted by subsection [a][3], shall not apply to payment for days before January 1, 2010.