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ALBANY, NY—Congressman Paul D. Tonko today announced a proposed rule from the Centers for Medicare and Medicaid Services (CMS) that would give a significant funding boost to hospitals in the Capital Region. The FY2024 Hospital Inpatient PPS Proposed Rule from the Centers from Medicare and Medicaid Services (CMS) would address a longstanding inequity, known as the Medicare Wage Index, that has short-changed Capital Region hospitals in Medicare reimbursement rates. If finalized, this would result in Capital Region hospitals receiving more than $180 million annually in additional Medicare payments.

“Throughout my tenure in Congress, I have worked alongside our local health care providers and hospitals to fix the Medicare Wage Index that unjustly shortchanges our region of needed federal dollars,” Congressman Tonko said. “I’ve seen firsthand the challenges facing our community hospitals and have never stopped pushing for federal action that can ensure the longevity of these facilities, support our health care workers, and better enable these institutions to deliver care to our Capital Region communities. After many years of driving home the importance of this issue in Congress and with the leadership of the Biden Administration, I’m thrilled to finally see CMS taking meaningful action here. I’m deeply grateful for this effort to fix this broken reimbursement rate across our state. At its core, this is an issue of fairness and justice for healthcare in our greater Capital Region.”

Tonko continued, “Moving forward, I will be advocating strongly for this proposal and submitting comments on behalf of my district hospitals. I will do all in my power to ensure this proposed rule sees the finish line and is made law.”

For years, the Medicare Wage Index for the Capital Region has rested around 86 cents on the dollar, while nearby regions in New York, Massachusetts, and Connecticut were provided much higher rates. The FY24 Inpatient Prospective Payment System (IPPS) proposed rule would bring the Capital Region’s MWI up to around $1.22, delivering more than $180 million in federal funding to NY-20 hospitals each year. Comments are due on the FY2024 Hospital Inpatient PPS Proposed Rule by June 9^th, and a final rule will be issued later this year.

Tonko has led the charge in Congress to boost the Capital Region’s MWI, including a fix to this reimbursement rate in the HEROES Act. That bill, along with the MWI provision, was passed out of the House in 2020 but stalled in the Senate. Tonko’s provision garnered broad support from local hospitals including Ellis Medicine, Albany Medical Center, St. Peter’s Health Partners in Albany, St. Mary’s Hospital in Amsterdam, and Saratoga Hospital.