HHS Wants Hospital Medicare Payments Tied To Commuter Data

Law360, New York (April 12, 2012, 7:56 PM EDT) -- Medicare should reform its wage index by basing hospital reimbursement rates on where a hospital's workers live, rather than the labor market where the hospital itself is located, Health and Human Services Secretary Kathleen Sebelius said in a report sent Wednesday to Congress.

The Patient Protection and Affordable Care Act calls for Sebelius to make recommendations on how to reform Medicare's wage index system, and Wednesday, she recommended that Medicare switch to a “commuting-based” system.

Under the current system, hospital reimbursement rates vary based on the...
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