News Headlines Article

Bill takes aim at reform law’s rural-floor provision
Modern Healthcare

New legislation from Rep. Kevin Brady (R-Texas) is welcome news to 20 state hospital associations working to eliminate a contentious hospital wage-index provision in the Patient Protection and Affordable Care Act. Brady’s bill—the Medicare Hospital Wage Index Equity Act of 2013—relates to the rural floor component of Medicare’s hospital wage index, which guarantees the wage index for rural hospitals is not more than the index for urban hospitals.

Before the 2010 healthcare overhaul, federal law required that payments for hospital wage-index adjustments be budget-neutral within a state so that only hospitals in that state would be affected by the changes.