News Releases

Medicare Wage Index Explained in April Policy Snapshot

In Northeast Ohio, close to 40 percent of payments hospitals receive come from the Medicare program, making Medicare reimbursement a key component of hospitals’ bottom lines. A crucial factor in determining the amount of Medicare reimbursement a hospital receives stems from wage index, a factor used by the Centers for Medicare and Medicaid Services (CMS) to account for regional differences in the cost of wages. 

April’s policy snapshot, Delving Into the Details: Medicare Wage Index Explained, examines how Medicare wage index is calculated, why there are so many different exceptions and reclassifications, and why hospitals and The Center for Health Affairs pay such close attention to this portion of the Medicare reimbursement formula. 

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