The original rule helps costs of labor in rural areas by providing a minimum level of reimbursement, but New Jersey is considered to be entirely urban by Medicare standards, the report said. Seven years ago, New Jersey received the special rule in order to set an artificial wage floor to stay on pace with Medicare funding in other states with several rural areas.
CMS will extend the wage floor for two more years, with most of the $90 million in reimbursements expected to head toward hospitals in southern New Jersey.
Read The Star-Ledger report on New Jersey hospitals and Medicare.
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