Over the last five years, Nebraska hospitals have lost out on $18.3 million due to a one-sentence Obamacare loophole.
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Over the last five years, Nebraska hospitals have lost out on $18.3 million due to a one-sentence Obamacare loophole. Ensuring access to quality care in rural areas is challenging enough without the federal government erroneously diverting needed funds.
This week, I introduced a bill to undo this misguided Obamacare provision, dubbed the “Bay State Boondoggle,” and help hospitals continue to serve our seniors.
Medicare hospital wage reimbursements are adjusted by the Centers for Medicare and Medicaid Services (CMS) as required to reflect the geographic area where services are delivered. Prior to Obamacare, if a hospital transitioned from a critical access hospital, to which the CMS wage index does not apply, to an acute care facility in which it does, the necessary funding reallocation would take place within the state.
However, Obamacare included a provision requiring Medicare wage reimbursements to come from a national pool of money rather than state allocations.