Wage Index

Appeals court eliminates Medicare supplemental payments for low-wage hospitals (updated)

Note: Updated information is at the bottom of this article. Plaintiff hospitals won litigation last week at the federal appellate level that will adversely affect Medicare payment for some rural hospitals. The U.S. Court of Appeals for the D.C. Circuit backed a district court’s decision that HHS acted unlawfully in 2019 when it issued regulations…

Nick Hut July 30, 2024

Medicare outpatient payments to hospitals won’t rise considerably in 2024, according to a proposed rule

Medicare’s newly proposed outpatient payment update for 2024 is unlikely to be greeted with enthusiasm by hospitals. The update for items and services provided in the hospital outpatient or ambulatory surgical center setting would be 2.8%, mirroring the proposed change for inpatient payments. The base update would be 3%, with a statutorily required productivity adjustment…

Nick Hut July 14, 2023

MedPAC takes aim at the Medicare wage index and reiterates support for site-neutral payment

In its semiannual report to Congress, the Medicare Payment Advisory Commission (MedPAC) recommends significant changes to two key aspects of Medicare policy: the wage index and site-neutral payment. 1. A revamp of the wage index The wage index consistently generates concern among healthcare stakeholders, including in Medicare’s FY24 proposed rule for hospital inpatient payments. According…

Nick Hut June 22, 2023

Medicare’s proposed FY24 update to inpatient payments falls short, hospitals say

Hospitals are less than pleased with Medicare’s proposed FY24 payment update for inpatient care. In proposed regulations, the net inpatient payment update is 2.8% after factoring in a mandatory productivity adjustment of -0.2 percentage points. As usual, the update would be reduced for any hospital that does not fulfill quality-reporting requirements or qualify as a…

Nick Hut April 12, 2023

Medicare’s proposed increase for inpatient payments in FY23 doesn’t meet hospitals’ expectations

The hospital industry expressed disappointment with the proposed increase for inpatient payments in FY23.

Nick Hut April 19, 2022

CMS issues FY23 proposed payment rules for hospices, inpatient psychiatric facilities and inpatient rehabilitation facilities

CMS has released proposed FY23 rules governing prospective payments to hospices, inpatient psychiatric facilities and inpatient rehabilitation facilities.

Nick Hut April 8, 2022

The Medicare area wage index likely needs a revamp, MedPAC members say

Wage index adjustments leave some hospitals at a disadvantage and are costly for the Medicare program, according to policy advisers.

Nick Hut October 25, 2021

Increased Medicare payments for COVID-19 care to stretch back to late January

Medicare will pay add-on bonuses for hospitals' patients treated with COVID-19 as far back as late January, says CMS.

Rich Daly April 21, 2020

OPPS final rule keeps site-neutral payments and 340B cuts, leaves out transparency requirement

The Medicare OPPS final rule will continue 340B and site-neutral payment cuts but leaves out the requirement to post rates negotiated with health plans.

Rich Daly December 6, 2019

Small Medicare payment increases in store for post-acute care

The Centers for Medicare & Medicaid Services (CMS) recently issued final rules with FY20 rates for skilled nursing facilities (SNFs), inpatient rehabilitation facilities (IRFs) and hospices.

Rich Daly August 7, 2019
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