Medicare Payment Fairness: Minimum Wage Index Floor for Rural Hospitals.
This law introduces a minimum Area Wage Index (0.85) for Medicare hospital payments, aiming to increase financial stability, especially for rural hospitals. This ensures that hospitals in regions with historically lower labor costs receive higher reimbursements, helping to maintain essential healthcare access for local residents. The changes are designed to be budget-neutral, meaning overall Medicare spending will not increase.
Key points
Establishes a minimum wage index floor (0.85) for Medicare inpatient and outpatient services, increasing funding for hospitals in areas with lower labor costs.
The primary goal is to protect healthcare access and prevent hospital closures in less populated areas.
To ensure budget neutrality, a maximum wage index ceiling will also be established, offsetting the increased payments to hospitals with the lowest indices.
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