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CHA Urges Members to Comment on Area Wage Index Changes in IPPS Proposed Rule

For CEOs, CFOs, Government Relations Staff

CHA has prepared a letter template that members can use to share with the Centers for Medicare & Medicaid Services (CMS) their opposition to its proposed changes to the Medicare area wage index, outlined in the federal fiscal year (FFY) 2020 inpatient prospective payment system (IPPS) proposed rule. Member input is critical, as this proposal inappropriately and unnecessarily harms California’s hospitals. 

The proposed change would increase the area wage index in low-wage states by lowering the area wage index in high-wage states. This would decrease Medicare hospital inpatient payments in California by more than $100 million in FFY 2020 (nearly 60% of total costs). 

Members are encouraged to personalize the letter by placing it on your hospital letterhead and inserting hospital-specific information to help tell the story of how this policy would impact your organization and community. 

CHA urges members to use the letter in drafting their own comments, which are due to CMS by 2 p.m. (PT) on June 24. CHA’s extensive IPPS comments will be shared later this week on our website and available in Friday’s edition of CHA News