Rep. Ron Kind (D-Wis.) has introduced a bill that would allow critical access hospitals to include the full cost of certain provider taxes in the costs that determine their Medicare reimbursements, according to an AHA News Now report.
CMS adopted a proposed clarification in its fiscal year 2011 final inpatient prospective payment system rule that gave Medicare contractors the ability to determine the allowability of CAH provider taxes in cost calculations on a case-by-case basis. Specifically, the contractors will determine if a reduction of the allowable tax expenses is necessary to account for payments providers receive that are associated with the assessed tax. The Rural Hospital Protection Act (H.R. 6346) will ensure that CAHs are able to include the full costs of provider taxes in their "allowable" costs, according to the report.
The American Hospital Association recently sent a letter to Rep. Kind in support of the legislation, stating, " under current regulations, these provider taxes are clearly allowable, and the fact that there may be payments made by the state to the provider — or the fact that Medicaid payments from the state may be funded by the provider taxes — does not change this result."
Read the AHA News Now report on critical access hospitals.
Read more coverage on critical access hospitals:
- Wisconsin Governor to Sign Funding Bill for Critical Access Hospitals
- CMS Backs Off Direct Supervision Requirement for Critical Access Hospitals
CMS adopted a proposed clarification in its fiscal year 2011 final inpatient prospective payment system rule that gave Medicare contractors the ability to determine the allowability of CAH provider taxes in cost calculations on a case-by-case basis. Specifically, the contractors will determine if a reduction of the allowable tax expenses is necessary to account for payments providers receive that are associated with the assessed tax. The Rural Hospital Protection Act (H.R. 6346) will ensure that CAHs are able to include the full costs of provider taxes in their "allowable" costs, according to the report.
The American Hospital Association recently sent a letter to Rep. Kind in support of the legislation, stating, " under current regulations, these provider taxes are clearly allowable, and the fact that there may be payments made by the state to the provider — or the fact that Medicaid payments from the state may be funded by the provider taxes — does not change this result."
Read the AHA News Now report on critical access hospitals.
Read more coverage on critical access hospitals:
- Wisconsin Governor to Sign Funding Bill for Critical Access Hospitals
- CMS Backs Off Direct Supervision Requirement for Critical Access Hospitals