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Mar 08

Medicare Wage Index: What It Is, How It Works, and Why It’s Important

Reimbursement, Special Report Michael Passanante

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The Medicare Wage Index (WI) is one of the factors that adjust a hospital’s overall payment from the Medicare program. Through the wage index, Medicare is able to maintain a consistent payment structure across IPPS hospitals while recognizing that the cost of labor varies in markets across the nation.

This paper explores:

  • Aspects of the wage index including how labor markets are defined.
  • Various adjustments that can impact how the wage index is calculated.
  • Recent changes to the wage index.
  • Opportunities that hospitals can take advantage of during their own review process.
Michael Passanante's avatar

About Michael Passanante

Michael Passanante is Vice President of Strategic Growth at BESLER.

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*HFMA staff and volunteers determined that Revenue Integrity Solutions including Transfer DRG Revenue Recovery Service, Inpatient DRG Validation and IME Revenue Recovery and Easy Work Papers have met certain criteria developed under the HFMA Peer Review Process. HFMA does not endorse or guarantee the use of this service.