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Wage Index Reform

Section 3137(b) of the Affordable Care Act requires the Secretary of Health and Human Services to submit to Congress a report that includes a plan to comprehensively reform the Medicare wage index applied under section 1886(d) of the Act relating to the IPPS.  In developing the plan, the Secretary was directed to take into consideration the goals for reforming the wage index that were set forth by MedPAC in its June 2007 report entitled “Report to Congress: Promoting Greater Efficiency in Medicare” and “consult with relevant affected parties”.

The “Report to Congress: Plan to Reform the Medicare Wage Index” was submitted by the Secretary on April 11, 2012.