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This bill amends Medicare's hospital payment formula to codify a low-wage index hospital policy. It increases the area wage index (a factor used to calculate Medicare reimbursement rates) for hospitals in low-wage areas, raising their payments by half the difference between their current index and the 25th percentile wage index. The adjustment applies to discharges on or after October 1, 2019, and is implemented in a budget-neutral manner, meaning increases for low-wage hospitals are offset by adjustments to other hospitals' payments.
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