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Monitor Consideration of Changes in the Medicare Area Wage Index System
The Medicare area wage index system has a significant impact on the Medicare revenue of urban safety-net hospitals. This system has become increasingly controversial, with many observers believing that changes in the system in recent years have been more politically oriented than policy-based. The 109th Congress's final piece of health care legislation – the Tax Relief and Health Care Act of 2006 – called on MedPAC to make recommendations by June 30, 2007 for the reform of the Medicare wage index system and for CMS to propose comprehensive reform of that system to take effect in FY 2009. Because any changes in the Medicare area wage index system could have a potentially dramatic effect on urban safety-net hospitals, NAUH will follow this issue closely, attempt to engage both MedPAC and CMS on wage index issues, as appropriate, and advocate forcefully on behalf of the interests of urban safety-net hospitals.
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