Updates to FY25 Medicare Inpatient Hospital Pay Rates

– Comment by November 29. This week, the Centers for Medicare & Medicaid Services (CMS) released an interim final action with comment period (IFC) that removes the low wage index hospital policy following the appellate court decision in Bridgeport Hosp. v. Becerra. The low wage index hospital policy was implemented in FY2020 to address wage index disparities affecting low-wage index hospitals, including many rural hospitals.  The court decided that the policy and related budget neutrality adjustment must be reversed. As a result, this IFC revises the Medicare wage index values for FY 2025, establishes a transitional payment exception for low wage hospitals significantly impacted by those revisions, and makes conforming changes to the Medicare hospital Inpatient Prospective Payment System (IPPS) payment rates for FY 2025. These changes are effective September 30, 2024. To be assured consideration, comments must be received by November 29, 2024.