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This bill amends the Medicare payment system to codify a policy that increases reimbursement rates for hospitals located in low-wage areas. Specifically, it requires that hospitals with area wage indices below the 25th percentile receive a wage index adjustment that raises their reimbursement rates by half the difference between their current index and the 25th percentile threshold. The adjustment applies to discharges occurring on or after October 1, 2019, and is implemented in a budget-neutral manner.
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