Official Statement from THA President and CEO Craig Becker on Fair Medicare Hospital Payments Act of 2016
April 21, 2016
“Today, Sen. Lamar Alexander filed legislation that addresses issues with the Medicare Area Wage Index (AWI), which has been of critical importance to Tennessee’s hospitals for some time. Despite the AWI’s intent to provide adjusted Medicare payments based on market differences in hospital operating costs, over time, the methodology has unfairly benefited some states while adversely impacting many other states, including Tennessee.
“Sen. Alexander’s proposal would bring about much needed change to the AWI and would level the playing field for all states. THA applauds Sen. Alexander’s leadership on this issue and fully supports the proposed legislation. Revising the AWI formula will help secure the stability and sustainability of hospitals across the state while maintaining much-needed access to healthcare services.
“Sen. Alexander’s support joins a growing number of bipartisan lawmakers and stakeholders from states negatively affected by the unfair impact of the AWI formula. THA has been working with several of these states in a coalition to reform the AWI formula in a more equitable way.
“Tennessee’s congressional delegation has been extremely helpful to hospitals on this matter and our industry is grateful for their support. We will continue to work with our senators and representatives to ensure these changes to the AWI become law.”