The AHA commented Nov. 26 on the Centers for Medicare & Medicaid Services’ hospital inpatient prospective payment system interim final action on revising the Medicare wage index values for fiscal year 2025. CMS is removing the low wage index policy and its related budget neutrality factor for FY 2025, following a July ruling by the U.S. Court of Appeals for the D.C. Circuit that determined CMS lacked authority to adopt the policy for FY 2020 and that it must be vacated. CMS has not indicated if and how it would address payments made to hospitals under the policy for FYs 2020-2024. The AHA urged CMS not to seek a revocation of the funds hospitals received under the policy during that period. 
 
"The AHA has long stated that while we appreciated CMS’ recognition of the wage index’s shortcomings, the agency should not have implemented this policy by penalizing all hospitals, especially when Medicare already pays far less than the cost of providing care," AHA wrote. "These funds supported low-wage hospitals during the COVID-19 pandemic and increased payments by roughly $300 million for the first year of policy. This included helping nearly 800 rural hospitals when rural hospital closures hit an all-time high, with 19 hospitals closing in 2020 and two additional closures in 2021." 

Related News Articles

Headline
The AHA Oct. 23 recommended changes to the Centers for Medicare & Medicaid Services’ Wasteful and Inappropriate Services Reduction model to address…
Headline
The Centers for Medicare & Medicaid Services has released an operational guide for Medicare-enrolled providers and suppliers on the Wasteful and…
Headline
A report by the Department of Health and Human Services Office of the Inspector General found that many Medicare Advantage and Medicaid managed care plans…
Headline
Medicare open enrollment for 2026 began Oct. 15 and runs through Dec. 7. During the annual enrollment period, Medicare-eligible individuals can check their…
Headline
The AHA Oct. 3 responded to the Medicare Payment Advisory Commission’s recent analysis on the financial impacts of Medicare Advantage enrollment growth on…
Headline
The federal government shutdown will continue as the Senate Oct. 3 failed to adopt a government funding deal. The latest attempt to pass the House-passed…