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Medicare Wage Index
The Medicare Wage Index has been an important part of the Medicare inpatient prospective payment system for a long time. However, now, the wage index plays an even larger part in the calculation of Medicare payments made to providers. One of the reasons for this is that Medicare rate increases have been very low due to tight federal budgets. This means that a hospital's wage index change from the previous year can determine whether Medicare reimbursement will increase or decrease.
WHA Contact
Brian Potter
Senior Advisor
608-274-1820
EMAIL:
Brian Potter
Also, CMS incorporates the wage index into all prospective payment systems including skilled nursing, outpatient services, rehab and home health services. Thus, the wage index has a dramatic impact on Medicare reimbursement across the entire continuum of care.
WHA, for the past several years has contracted with RC Healthcare Management Services to help member hospitals correctly fill out the S-3 worksheets of the Medicare Cost Report. These worksheets are the source of data, which CMS uses to calculate the wage index.
Newsletter Articles and Press Releases
06.22.2023
WHA Launches 2023 Wage Index Improvement Project with New Partner, FORVIS
Other Resources
American Hospital Association Information on the Medicare Area Wage Index
Center for Medicare and Medicaid Services Information on the Medicare Area Wage Index