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Advising the Congress on Medicare issues
MedPAC > Recommendations > Reforming Medicare’s wage index systems

Reforming Medicare’s wage index systems

June 15, 2023

The Congress should repeal the existing Medicare wage index statutes, including current exceptions, and require the Secretary to phase in new Medicare wage index systems for hospitals and other types of providers that:

  • use all-employer, occupation-level wage data with different occupation weights for the wage index of each provider type;
  • reflect local area level differences in wages between and within metropolitan= statistical areas and statewide rural areas; and
  • smooth wage index differences across adjacent local areas.

Appeared in: June 2023 - Chapter 9

Topics: Hospital.