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Guidebook Medicare Wage Index for VA Facilities: 2000-2009 - HERC - herc research va

Guidebook Medicare Wage Index for VA Facilities: 2000-2009 - HERC - herc research va-2025

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The document is a guidebook authored by Todd H. Wagner, detailing the Medicare Wage Index for VA facilities from 2000 to 2009. It discusses the variability of labor prices across different regions in the U.S. and how researchers can adjust cost analyses using the Medicare wage index. The guidebook outlines methods for merging data from the Centers for Medicare and Medicaid Services (CMS) with VA facility data, providing insights into data access, variable descriptions, and an example of Stata code for merging datasets.

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What is the wage index value?

A labor market areas wage index value is the ratio of the areas average hourly wage to the national average hourly wage. The wage index adjustment factor is applied only to the labor portion of the standardized amounts.

What is CBSA wage index?

Core-based statistical area (CBSA): A geographic area (defined by the Office of Management and Budget) that the Centers for Medicare and Medicaid Services uses to define the payment areas for the hospital wage index. CBSA is a collective term for metropolitan statistical areas and micropolitan statistical areas.

What is the Medicare wage Index?

The area wage index adjusts Medicare hospital inpatient and outpatient payments for the approximately 3400 prospective payment system (PPS) hospitals for differences in wage rates across geographic regions.

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What is the formula for the wage index?

Example of a National Average Wage Index Calculation The 2021 National Average Wage Index is calculated by multiplying the previous years NAWI by the change in average wages from the previous two years (based on the SSAs average wage data).

What does the wage index do?

Medicare uses Hospital Wage Index to adjust payments made to hospitals under the Prospective Payment System (PPS). It is strongly recommended that each hospital submits the wage-related information to the fiscal intermediary within the requested timeframe.

How does CMS calculate wage index?

In computing the wage index, we derive an average hourly wage for each labor market area (total wage costs divided by total hours for all hospitals in the geographic area) and a national average hourly wage (total wage costs divided by total hours for all hospitals in the nation).

Guidebook Medicare Wage Index for VA Facilities: 2000-2009 - HERC - herc research va-2025

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