[Federal Register Volume 67, Number 169 (Friday, August 30, 2002)] [Notices] [Pages 56092-56114] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 02-22018] [[Page 56091]] ----------------------------------------------------------------------- Part IV Department of Health and Human Services ----------------------------------------------------------------------- Centers for Medicare & Medicaid Services ----------------------------------------------------------------------- Medicare Program; Hospice Wage Index Fiscal Year 2003; Notice Federal Register / Vol. 67, No. 169 / Friday, August 30, 2002 / Notices [[Page 56092]] ----------------------------------------------------------------------- DEPARTMENT OF HEALTH AND HUMAN SERVICES Centers for Medicare & Medicaid Services [CMS-1211-N] RIN 0938-AL41 Medicare Program; Hospice Wage Index Fiscal Year 2003 AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: This notice announces the annual update to the hospice wage index as required by statute. This update is effective October 1, 2002 through September 30, 2003. The wage index is used to reflect local differences in wage levels. The hospice wage index methodology and values are based on recommendations of a negotiated rulemaking advisory committee and were originally published in the Federal Register on August 8, 1997. EFFECTIVE DATE: October 1, 2002. FOR FURTHER INFORMATION CONTACT: Lynn Riley, (410) 786-1286. SUPPLEMENTARY INFORMATION I. Background A. Statute and Regulations Hospice care is an approach to treatment that recognizes that the impending death of an individual warrants a change in the focus from curative care to palliative care (relief of pain and other uncomfortable symptoms). The goal of hospice care is to help terminally ill individuals continue life with minimal disruption to normal activities while remaining primarily in the home environment. A hospice uses an interdisciplinary approach to deliver medical, social, psychological, emotional, and spiritual services through use of a broad spectrum of professional and other caregivers, with the goal of making the individual as physically and emotionally comfortable as possible. Counseling and inpatient respite services are available to the family of the hospice patient. Hospice programs consider both the patient and the family as a unit of care. Section 1861(dd) of the Social Security Act (the Act) provides for coverage of hospice care for terminally ill Medicare beneficiaries who elect to receive care from a participating hospice. The statutory authority for payment to hospices participating in the Medicare program is contained in section 1814(i) of the Act. Our existing regulations under 42 CFR part 418 establish eligibility requirements and payment standards and procedures, define covered services, and delineate the conditions a hospice must meet to be approved for participation in the Medicare program. Subpart G of part 418 provides for payment to hospices based on one of four prospectively determined rates for each day in which a qualified Medicare beneficiary is under the care of a hospice. The four rate categories are routine home care, continuous home care, inpatient respite care, and general inpatient care. Payment rates are established for each category. The regulations at Sec. 418.306(c), which require the rates to be adjusted by a wage index, were revised in the August 8, 1997 final rule published in the Federal Register (62 FR 42860). This rule implemented a new methodology for calculating the hospice wage index based on the recommendations of a negotiated rulemaking committee. The committee reached consensus on the methodology. We included the resulting committee statement, describing that consensus, as an appendix to the August 8, 1997 final rule (62 FR 42883). The provisions of the final hospice wage index rule are as follows:The revised hospice wage index will be calculated using the most current available hospital wage data. The revised hospice wage index was phased in over a 3-year transition period. For the first year of the transition period, October 1, 1997 through September 30, 1998, a blended index was calculated by adding two-thirds of the 1983 index value for an area to one-third of the revised wage index value for that area. During the second year of the transition period, October 1, 1998 through September 30, 1999, the calculation was similar, except that the blend was one-third of the 1983 index value and two-thirds of the revised wage index value for that area. We fully implemented the revised wage index during the third transition period, October 1, 1999 through September 30, 2000. All hospice wage index values of 0.8 or greater are subject to a budget-neutrality adjustment to ensure that we do not pay more in the aggregate than we would have paid under the original 1983 wage index. The budget-neutrality adjustment is calculated by multiplying the hospice wage index for a given area by the budget- neutrality adjustment factor. The budget-neutrality adjustment is to be applied annually, both during and after the transition period. All hospice wage index values below 0.8 receive the greater of the following adjustments: the wage index floor, a 15- percent increase, subject to a maximum wage index value of 0.8; or the budget-neutrality adjustment. The wage index is to be updated annually, in the Federal Register, based on the most current available hospital wage data. These data will include any changes to the definitions of Metropolitan Statistical Areas (MSA). Section 4441(a) of the Balanced Budget Act of 1997 (BBA) amended section 1814(i)(1)(C)(ii) of the Act to establish updates to hospice rates for fiscal years (FYs) 1998 through 2002. Hospice rates were to be updated by a factor equal to the market basket index, minus 1 percentage point. However, section 131(a) of the Medicare, Medicaid, and SCHIP Balanced Budget Refinement Act of 1999 (BBRA) changed the payment rates for FYs 2001 and 2002 by increasing the FY 2001 rate by 0.5 percent and the FY 2002 rate by 0.75 percent. Section 131(b) of the BBRA states that any additional payments made under section 131(a) of the BBRA shall not be included in updating the hospice rates after those 2 years. Section 321(a) of the Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000 (BIPA) amended section 1814(i)(1)(C)(ii)(VI) of the Act by increasing Medicare hospice rates for FY 2001 by 5 percentage points. This amendment was applicable to hospice care furnished on or after April 1, 2001. Section 321(b) of the BIPA further stipulated that the 5-percent increase in Medicare hospice rates during the period beginning on April 1, 2001 through September 30, 2001 were to be treated as the payment rates in effect during FY 2001. This means that the 5-percent increase was made to the base that is updated annually according to a statutorily dictated percentage of the market basket update, as provided in section 1814(i) of the Act. The new Medicare rates for this time period were announced through HCFA Program Memorandum (PM) A-01-04 on January 16, 2001. Also, section 321(d) of the BIPA specified that the Secretary of Health and Human Services use 1.0043 as the hospice wage index value for the Wichita, Kansas MSA in calculating payments for a hospice program providing hospice care in this MSA during FY 2000. Payment rates for FY 2003 will be updated according to section 1814(i) of the Act. The FY 2003 rates will be the full market basket percentage increase for the FY. This rate update will be implemented through a separate PM and is not part of this notice. [[Page 56093]] B. Update to the Hospice Wage Index This annual update is effective October 1, 2002 through September 30, 2003. In accordance with the agreement we signed with other members of the Hospice Wage Index Negotiated Rulemaking Committee, we are using the most current hospital data available to us, including any changes to the definitions of MSAs. The FY 2002 hospital wage index was the most current hospital wage data available when the FY 2003 wage index values were calculated. We used the pre-reclassified and pre-floor hospital area wage index data. All wage index values are adjusted by a budget-neutrality factor of 1.063422 and are subject to the wage index floor adjustment, if applicable. We have completed all of the calculations described above and have included them in the wage index values reflected in both Tables A and B below. A detailed description of the method used to compute the hospice wage index is contained in both the September 4, 1996 proposed rule published in the Federal Register (61 FR 46579) and the August 8, 1997 final rule published in the Federal Register (62 FR 42860). 1. Metropolitan Statistical Areas As explained in the September 4, 1996 hospice wage index proposed rule, each hospice's labor market area would be established by the MSA definitions issued by the Office of Management and Budget (OMB) on December 28, 1992 based on the 1990 census, and updated by OMB based on the decennial census. Any changes to the MSA definitions would be effective annually and announced in the final rule updating the hospice wage index. 2. MSA Wage Index Values Lower Than Rural Values As explained above, any area not included in an MSA is considered to be nonurban and receives the statewide rural rate. We are aware that in the past, a number of MSAs have had wage index values that were lower than their rural statewide value. This difference is due to variations in local wage data as compared to national wage data. The hospice wage index is computed by dividing the hourly wage rate for an MSA or nonurban area by a national hourly wage rate. Nonurban areas could receive a higher wage index value than urban areas in the same State if the hourly wage rate in the nonurban area increased at a greater rate. C. Tables Table A.--Hospice Wage Index for Urban Areas ------------------------------------------------------------------------ Urban area (constituent MSA Code No. counties or county Wage index \2\ equivalents) \1\ ------------------------------------------------------------------------ 0040........................... Abilene, TX............ 0.8470 Taylor, TX............. 0060........................... Aguadilla, PR.......... 0.5385 Aguada, PR............. Aguadilla, PR.......... Moca, PR............... 0080........................... Akron, OH.............. 1.0502 Portage, OH............ Summit, OH............. 0120........................... Albany, GA............. 1.1315 Dougherty, GA.......... Lee, GA................ 0160........................... Albany-Schenectady- 0.9039 Troy, NY. Albany, NY............. Montgomery, NY......... Rensselaer, NY......... Saratoga, NY........... Schenectady, NY........ Schoharie, NY.......... 0200........................... Albuquerque, NM........ 1.0378 Bernalillo, NM......... Sandoval, NM........... Valencia, NM........... 0220........................... Alexandria, LA......... 0.8538 Rapides, LA............ 0240........................... Allentown-Bethlehem- 1.0716 Easton, PA. Carbon, PA............. Lehigh, PA............. Northampton, PA........ 0280........................... Altoona, PA............ 0.9705 Blair, PA.............. 0320........................... Amarillo, TX........... 0.9263 Potter, TX............. Randall, TX............ 0380........................... Anchorage, AK.......... 1.3367 Anchorage, AK.......... 0440........................... Ann Arbor, MI.......... 1.1802 Lenawee, MI............ Livingston, MI......... Washtenaw, MI.......... 0450........................... Anniston, AL........... 0.8801 Calhoun, AL............ [[Page 56094]] 0460........................... Appleton-Oshkosh- 0.9827 Neenah, WI. Calumet, WI............ Outagamie, WI.......... Winnebago, WI.......... 0470........................... Arecibo, PR............ 0.8507 Arecibo, PR............ Camuy, PR.............. Hatillo, PR............ 0480........................... Asheville, NC.......... 0.9783 Buncombe, NC........... Madison, NC............ 0500........................... Athens, GA............. 1.0466 Clarke, GA............. Madison, GA............ Oconee, GA............. 0520........................... Atlanta, GA............ 1.0696 Barrow, GA............. Bartow, GA............. Carroll, GA............ Cherokee, GA........... Clayton, GA............ Cobb, GA............... Coweta, GA............. DeKalb, GA............. Douglas, GA............ Fayette, GA............ Forsyth, GA............ Fulton, GA............. Gwinnett, GA........... Henry, GA.............. Newton, GA............. Paulding, GA........... Pickens, GA............ Rockdale, GA........... Spalding, GA........... Walton, GA............. 0560........................... Atlantic-Cape May, NJ.. 1.2009 Atlantic, NJ........... Cape May, NJ........... 0580........................... Auburn-Opelika, AL..... 0.8752 Lee, AL................ 0600........................... Augusta-Aiken, GA-SC... 1.0602 Columbia, GA........... McDuffie, GA........... Richmond, GA........... Aiken, SC.............. Edgefield, SC.......... 0640........................... Austin-San Marcos, TX.. 1.0241 Bastrop, TX............ Caldwell, TX........... Hays, TX............... Travis, TX............. Williamson, TX......... 0680........................... Bakersfield, CA........ 1.0123 Kern, CA............... 0720........................... Baltimore, MD.......... 1.0481 Anne Arundel, MD....... Baltimore, MD.......... Baltimore City, MD..... Carroll, MD............ Harford, MD............ Howard, MD............. Queen Anne's, MD....... 0733........................... Bangor, ME............. 1.0201 Penobscot, ME.......... 0743........................... Barnstable-Yarmouth, MA 1.4490 Barnstable, MA......... [[Page 56095]] 0760........................... Baton Rouge, LA........ 0.8666 Ascension, LA.......... East Baton Rouge, LA... Livingston, LA......... West Baton Rouge, LA... 0840........................... Beaumont-Port Arthur, 0.8977 TX. Hardin, TX............. Jefferson, TX.......... Orange, TX............. 0860........................... Bellingham, WA......... 1.2576 Whatcom, WA............ 0870........................... Benton Harbor, MI...... 0.9451 Berrien, MI............ 0875........................... Bergen-Passaic, NJ..... 1.2430 Bergen, NJ............. Passaic, NJ............ 0880........................... Billings, MT........... 0.9945 Yellowstone, MT........ 0920........................... Biloxi-Gulfport- 0.8975 Pascagoula, MS. Hancock, MS............ Harrison, MS........... Jackson, MS............ 0960........................... Binghamton, NY......... 0.8982 Broome, NY............. Tioga, NY.............. 1000........................... Birmingham, AL......... 0.9367 Blount, AL............. Jefferson, AL.......... St. Clair, AL.......... Shelby, AL............. 1010........................... Bismarck, ND........... 0.8490 Burleigh, ND........... Morton, ND............. 1020........................... Bloomington, IN........ 0.9403 Monroe, IN............. 1040........................... Bloomington-Normal, IL. 0.9611 McLean, IL............. 1080........................... Boise City, ID......... 0.9624 Ada, ID................ Canyon, ID............. 1123........................... Boston-Worcester- 1.2105 Lawrence-Lowell- Brockton, MA-NH. Bristol, MA............ Essex, MA.............. Middlesex, MA.......... Norfolk, MA............ Plymouth, MA........... Suffolk, MA............ Worcester, MA.......... Hillsborough, NH....... Merrimack, NH.......... Rockingham, NH......... Strafford, NH.......... 1125........................... Boulder-Longmont, CO... 1.0420 Boulder, CO............ 1145........................... Brazoria, TX........... 0.8730 Brazoria, TX........... 1150........................... Bremerton, WA.......... 1.1440 Kitsap, WA............. 1240........................... Brownsville-Harlingen- 0.9584 San Benito, TX. Cameron, TX............ 1260........................... Bryan-College Station, 0.9920 TX. Brazos, TX............. 1280........................... Buffalo-Niagara Falls, 1.0059 NY. Erie, NY............... Niagara, NY............ 1303........................... Burlington, VT......... 1.0510 Chittenden, VT......... Franklin, VT........... Grand Isle, VT......... [[Page 56096]] 1310........................... Caguas, PR............. 0.5404 Caguas, PR............. Cayey, PR.............. Cidra, PR.............. Gurabo, PR............. San Lorenzo, PR........ 1320........................... Canton-Massillon, OH... 0.9524 Carroll, OH............ Stark, OH.............. 1350........................... Casper, WY............. 1.0098 Natrona, WY............ 1360........................... Cedar Rapids, IA....... 0.9251 Linn, IA............... 1400........................... Champaign-Urbana, IL... 0.9896 Champaign, IL.......... 1440........................... Charleston-North 0.9790 Charleston, SC. Berkeley, SC........... Charleston, SC......... Dorchester, SC......... 1480........................... Charleston, WV......... 0.9852 Kanawha, WV............ Putnam, WV............. 1520........................... Charlotte-Gastonia-Rock 0.9928 Hill, NC-SC. Cabarrus, NC........... Gaston, NC............. Lincoln, NC............ Mecklenburg, NC........ Rowan, NC.............. Stanly, NC............. Union, NC.............. York, SC............... 1540........................... Charlottesville, VA.... 1.1236 Albermale, VA.......... Charlottesville City, VA. Fluvanna, VA........... Greene, VA............. 1560........................... Chattanooga, TN-GA..... 0.9963 Catoosa, GA............ Dade, GA............... Walker, GA............. Hamilton, TN........... Marion, TN............. 1580........................... Cheyenne, WY........... 0.8814 Laramie, WY............ 1600........................... Chicago, IL............ 1.1747 Cook, IL............... DeKalb, IL............. Du Page, IL............ Grundy, IL............. Kane, IL............... Kendall, IL............ Lake, IL............... McHenry, IL............ Will, IL............... 1620........................... Chico-Paradise, CA..... 1.0481 Butte, CA.............. 1640........................... Cincinnati, OH-KY-IN... 1.0074 Brown, OH.............. Clermont, OH........... Hamilton, OH........... Warren, OH............. Boone, KY.............. Campbell, KY........... Gallatin, KY........... Grant, KY.............. Kenton, KY............. Pendleton, KY.......... Dearborn, IN........... Ohio, IN............... [[Page 56097]] 1660........................... Clarksville- 0.8866 Hopkinsville, TN-KY. Christian, KY.......... Montgomery, TN......... 1680........................... Cleveland-Lorain- 1.0057 Elyria, OH. Ashtabula, OH.......... Cuyahoga, OH........... Geauga, OH............. Lake, OH............... Lorain, OH............. Medina, OH............. 1720........................... Colorado Springs, CO... 1.0362 El Paso, CO............ 1740........................... Columbia, MO........... 0.9237 Boone, MO.............. 1760........................... Columbia, SC........... 1.0094 Lexington, SC.......... Richland, SC........... 1800........................... Columbus, GA-AL........ 0.8975 Chattahoochee, GA...... Harris, GA............. Muscogee, GA........... Russell, AL............ 1840........................... Columbus, OH........... 1.0172 Delaware, OH........... Fairfield, OH.......... Franklin, OH........... Licking, OH............ Madison, OH............ Pickaway, OH........... 1880........................... Corpus Christi, TX..... 0.8870 Nueces, TX............. San Patricio, TX....... 1890........................... Corvallis, Oregon...... 1.2385 Benton, OR............. 1900........................... Cumberland, MD-WV...... 0.8833 Allegany, MD........... Mineral, WV............ 1920........................... Dallas, TX............. 1.0566 Collin, TX............. Dallas, TX............. Denton, TX............. Ellis, TX.............. Henderson, TX.......... Hunt, TX............... Kaufman, TX............ Rockwall, TX........... 1950........................... Danville, VA........... 0.9159 Danville City, VA...... Pittsylvania, VA....... 1960........................... Davenport-Moline-Rock 0.9186 Island, IA-IL. Scott, IA.............. Henry, IL.............. Rock Island, IL........ 2000........................... Dayton-Springfield, OH. 0.9810 Clark, OH.............. Greene, OH............. Miami, OH.............. Montgomery, OH......... 2020........................... Daytona Beach, FL...... 0.9541 Flagler, FL............ Volusia, FL............ 2030........................... Decatur, AL............ 0.9332 Lawrence, AL........... Morgan, AL............. 2040........................... Decatur, IL............ 0.8494 Macon, IL.............. [[Page 56098]] 2080........................... Denver, CO............. 1.0983 Adams, CO.............. Arapahoe, CO........... Denver, CO............. Douglas, CO............ Jefferson, CO.......... 2120........................... Des Moines, IA......... 0.9336 Dallas, IA............. Polk, IA............... Warren, IA............. 2160........................... Detroit, MI............ 1.1152 Lapeer, MI............. Macomb, MI............. Monroe, MI............. Oakland, MI............ St. Clair, MI.......... Wayne, MI.............. 2180........................... Dothan, AL............. 0.8452 Dale, AL............... Houston, AL............ 2190........................... Dover, DE.............. 1.0949 Kent, DE............... 2200........................... Dubuque, IA............ 0.9059 Dubuque, IA............ 2240........................... Duluth-Superior, MN-WI. 1.0936 St. Louis, MN.......... Douglas, WI............ 2281........................... Dutchess County, NY.... 1.1200 Dutchess, NY........... 2290........................... Eau Claire, WI......... 0.9463 Chippewa, WI........... Eau Claire, WI......... 2320........................... El Paso, TX............ 0.9799 El Paso, TX............ 2330........................... Elkhart-Goshen, IN..... 1.0249 Elkhart, IN............ 2335........................... Elmira, NY............. 0.8949 Chemung, NY............ 2340........................... Enid, OK............... 0.8887 Garfield, OK........... 2360........................... Erie, PA............... 0.9269 Erie, PA............... 2400........................... Eugene-Springfield, OR. 1.2199 Lane, OR............... 2440........................... Evansville-Henderson, 0.9054 IN-KY. Posey, IN.............. Vanderburgh, IN........ Warrick, IN............ Henderson, KY.......... 2520........................... Fargo-Moorhead, ND-MN.. 0.9855 Clay, MN............... Cass, ND............... 2560........................... Fayetteville, NC....... 0.9600 Cumberland, NC......... 2580........................... Fayetteville-Springdale- 0.8981 Rogers, AR. Benton, AR............. Washington, AR......... 2620........................... Flagstaff, AZ-UT....... 1.1225 Coconino, AZ........... Kane, UT............... 2640........................... Flint, MI.............. 1.1605 Genesee, MI............ 2650........................... Florence, AL........... 0.8343 Colbert, AL............ Lauderdale, AL......... 2655........................... Florence, SC........... 0.9275 Florence, SC........... 2670........................... Fort Collins-Loveland, 1.0682 CO. Larimer, CO............ 2680........................... Ft. Lauderdale, FL..... 1.0946 Broward, FL............ [[Page 56099]] 2700........................... Fort Myers-Cape Coral, 0.9969 FL. Lee, FL................ 2710........................... Fort Pierce-Port St. 1.0862 Lucie, FL. Martin, FL............. St. Lucie, FL.......... 2720........................... Fort Smith, AR-OK...... 0.8564 Crawford, AR........... Sebastian, AR.......... Sequoyah, OK........... 2750........................... Fort Walton Beach, FL.. 0.9573 Okaloosa, FL........... 2760........................... Fort Wayne, IN......... 0.9787 Adams, IN.............. Allen, IN.............. De Kalb, IN............ Huntington, IN......... Wells, IN.............. Whitley, IN............ 2800........................... Fort Worth-Arlington, 0.9990 TX. Hood, TX............... Johnson, TX............ Parker, TX............. Tarrant, TX............ 2840........................... Fresno, CA............. 1.0617 Fresno, CA............. Madera, CA............. 2880........................... Gadsden, AL............ 0.9350 Etowah, AL............ 2900........................... Gainesville, FL........ 1.0082 Alachua, FL............ 2920........................... Galveston-Texas City, 1.0967 TX. Galveston, TX.......... 2960........................... Gary, IN............... 1.0134 Lake, IN............... Porter, IN............. 2975........................... Glens Falls, NY........ 0.8865 Warren, NY............. Washington, NY......... 2980........................... Goldsboro, NC.......... 0.9261 Wayne, NC.............. 2985........................... Grand Forks, ND-MN..... 0.9644 Grand Forks, ND........ Polk, MN............... 2995........................... Grand Junction, CO..... 1.0176 Mesa, CO............... 3000........................... Grand Rapids-Muskegon- 1.0685 Holland, MI. Allegan, MI............ Kent, MI............... Muskegon, MI........... Ottawa, MI............. 3040........................... Great Falls, MT........ 0.9433 Cascade, MT............ 3060........................... Greeley, CO............ 1.0097 Weld, CO............... 3080........................... Green Bay, WI.......... 0.9792 Brown, WI.............. 3120........................... Greensboro-Winston- 1.0144 Salem-High Point, NC. Alamance, NC........... Davidson, NC........... Davie, NC.............. Forsyth, NC............ Guilford, NC........... Randolph, NC........... Stokes, NC............. Yadkin, NC............. 3150........................... Greenville, NC......... 0.9878 Pitt, NC............... [[Page 56100]] 3160........................... Greenville-Spartanburg- 0.9802 Anderson, SC. Anderson, SC........... Cherokee, SC........... Greenville, SC......... Pickens, SC............ Spartanburg, SC........ 3180........................... Hagerstown, MD......... 0.8896 Washington, MD......... 3200........................... Hamilton-Middletown, OH 0.9876 Butler, OH............. 3240........................... Harrisburg-Lebanon- 1.0023 Carlisle, PA. Cumberland, PA......... Dauphin, PA............ Lebanon, PA............ Perry, PA.............. 3283........................... Hartford, CT........... 1.2264 Hartford, CT........... Litchfield, CT......... Middlesex, CT.......... Tolland, CT............ 3285........................... Hattiesburg, MS........ 0.8000 Forrest, MS............ Lamar, MS.............. 3290........................... Hickory-Morganton- 0.9961 Lenoir, NC. Alexander, NC.......... Burke, NC.............. Caldwell, NC........... Catawba, NC............ 3320........................... Honolulu, HI........... 1.2271 Honolulu, HI........... 3350........................... Houma, LA.............. 0.8481 Lafourche, LA.......... Terrebonne, LA......... 3360........................... Houston, TX............ 1.0242 Chambers, TX........... Fort Bend, TX.......... Harris, TX............. Liberty, TX............ Montgomery, TX......... Waller, TX............. 3400........................... Huntington-Ashland, WV- 1.0226 KY-OH. Boyd, KY............... Carter, KY............. Greenup, KY............ Lawrence, OH........... Cabell, WV............. Wayne, WV.............. 3440........................... Huntsville, AL......... 0.9446 Limestone, AL.......... Madison, AL............ 3480........................... Indianapolis, IN....... 1.0313 Boone, IN.............. Hamilton, IN........... Hancock, IN............ Hendricks, IN.......... Johnson, IN............ Madison, IN............ Marion, IN............. Morgan, IN............. Shelby, IN............. 3500........................... Iowa City, IA.......... 1.0484 Johnson, IA............ 3520........................... Jackson, MI............ 0.9844 Jackson, MI............ 3560........................... Jackson, MS............ 0.9030 Hinds, MS.............. Madison, MS............ Rankin, MS............. 3580........................... Jackson, TN............ 0.9585 Madison, TN............ Chester, TN............ [[Page 56101]] 3600........................... Jacksonville, FL....... 0.9808 Clay, FL............... Duval, FL.............. Nassau, FL............. St. Johns, FL.......... 3605........................... Jacksonville, NC....... 0.8105 Onslow, NC............. 3610........................... Jamestown, NY.......... 0.8561 Chautauqua, NY......... 3620........................... Janesville-Beloit, WI.. 1.0357 Rock, WI............... 3640........................... Jersey City, NJ........ 1.1887 Hudson, NJ............. 3660........................... Johnson City-Kingsport- 0.9164 Bristol, TN-VA. Carter, TN............. Hawkins, TN............ Sullivan, TN........... Unicoi, TN............. Washington, TN......... Bristol City, VA....... Scott, VA.............. Washington, VA......... 3680........................... Johnstown, PA.......... 0.9276 Cambria, PA............ Somerset, PA........... 3700........................... Jonesboro, AR.......... 0.8959 Craighead, AR.......... 3710........................... Joplin, MO............. 0.9280 Jasper, MO............. Newton, MO............. 3720........................... Kalamazoo-Battlecreek, 1.1314 MI. Calhoun, MI............ Kalamazoo, MI.......... Van Buren, MI.......... 3740........................... Kankakee, IL........... 1.0516 Kankakee, IL........... 3760........................... Kansas City, KS-MO..... 1.0141 Johnson, KS............ Leavenworth, KS........ Miami, KS.............. Wyandotte, KS.......... Cass, MO............... Clay, MO............... Clinton, MO............ Jackson, MO............ Lafayette, MO.......... Platte, MO............. Ray, MO................ 3800........................... Kenosha, WI............ 1.0175 Kenosha, WI............ 3810........................... Killeen-Temple, TX..... 0.9008 Bell, TX............... Coryell, TX............ 3840........................... Knoxville, TN.......... 0.9454 Anderson, TN........... Blount, TN............. Knox, TN............... Loudon, TN............. Sevier, TN............. Union, TN.............. 3850........................... Kokomo, IN............. 0.9705 Howard, IN............. Tipton, IN............. 3870........................... La Crosse, WI-MN....... 0.9837 Houston, MN............ La Crosse, WI.......... 3880........................... Lafayette, LA.......... 0.9086 Acadia, LA............. Lafayette, LA.......... St. Landry, LA......... St. Martin, LA......... [[Page 56102]] 3920........................... Lafayette, IN.......... 0.9700 Clinton, IN............ Tippecanoe, IN......... 3960........................... Lake Charles, LA....... 0.8257 Calcasieu, LA.......... 3980........................... Lakeland-Winter Haven, 0.9642 FL. Polk, FL............... 4000........................... Lancaster, PA.......... 0.9886 Lancaster, PA.......... 4040........................... Lansing-East Lansing, 1.0265 MI. Clinton, MI............ Eaton, MI.............. Ingham, MI............. 4080........................... Laredo, TX............. 0.8347 Webb, TX............... 4100........................... Las Cruces, NM......... 0.9168 Dona Ana, NM........... 4120........................... Las Vegas, NV-AZ....... 1.1891 Mohave, AZ............. Clarke, NV............. Nye, NV................ 4150........................... Lawrence, KS........... 0.8307 Douglas, KS............ 4200........................... Lawton, OK............. 0.9233 Comanche, OK........... 4243........................... Lewiston-Auburn, ME.... 0.9876 Androscoggin, ME....... 4280........................... Lexington, KY.......... 0.9349 Bourbon, KY............ Clark, KY.............. Fayette, KY............ Jessamine, KY.......... Madison, KY............ Scott, KY.............. Woodford, KY........... 4320........................... Lima, OH............... 1.0071 Allen, OH.............. Auglaize, OH........... 4360........................... Lincoln, NE............ 1.0818 Lancaster, NE.......... 4400........................... Little Rock-North 0.9523 Little Rock, AR. Faulkner, AR........... Lonoke, AR............. Pulaski, AR............ Saline, AR............. 4420........................... Longview-Marshall, TX.. 0.9115 Gregg, TX.............. Harrison, TX........... Upshur, TX............. 4480........................... Los Angeles-Long Beach, 1.2706 CA. Los Angeles, CA........ 4520........................... Louisville, KY-IN...... 1.0133 Clark, IN.............. Floyd, IN.............. Harrison, IN........... Scott, IN.............. Bullitt, KY............ Jefferson, KY.......... Oldham, KY............. 4600........................... Lubbock, TX............ 0.8985 Lubbock, TX............ 4640........................... Lynchburg, VA.......... 0.9680 Amherst, VA............ Bedford, VA............ Bedford City, VA....... Campbell, VA........... Lynchburg City, VA..... [[Page 56103]] 4680........................... Macon, GA.............. 0.9525 Bibb, GA............... Houston, GA............ Jones, GA.............. Peach, GA.............. Twiggs, GA............. 4720........................... Madison, WI............ 1.0993 Dane, WI............... 4800........................... Mansfield, OH.......... 0.9260 Crawford, OH........... Richland, OH........... 4840........................... Mayaguez, PR........... 0.5589 Anasco, PR............. Cabo Rojo, PR.......... Hormigueros, PR........ Mayaguez, PR........... Sabana Grande, PR...... San German, PR......... 4880........................... McAllen-Edinburg- 0.8909 Mission, TX. Hidalgo, TX............ 4890........................... Medford-Ashland, OR.... 1.0968 Jackson, OR............ 4900........................... Melbourne-Titusville- 1.0542 Palm Bay, FL. Brevard, Fl............ 4920........................... Memphis, TN-AR-MS...... 0.9547 Crittenden, AR......... DeSoto, MS............. Fayette, TN............ Shelby, TN............. Tipton, TN............. 4940........................... Merced, CA............. 1.0578 Merced, CA............. 5000........................... Miami, FL.............. 1.0581 Dade, FL............... 5015........................... Middlesex-Somerset- 1.2196 Hunterdon, NJ. Hunterdon, NJ.......... Middlesex, NJ.......... Somerset, NJ........... 5080........................... Milwaukee-Waukesha, WI. 1.0603 Milwaukee, WI.......... Ozaukee, WI............ Washington, WI......... Waukesha, WI........... 5120........................... Minneapolis-St. Paul, 1.1623 MN-WI. Anoka, MN.............. Carver, MN............. Chisago, MN............ Dakota, MN............. Hennepin, MN........... Isanti, MN............. Ramsey, MN............. Scott, MN.............. Sherbune, MN........... Washington, MN......... Wright, MN............. Pierce, WI............. St. Croix, WI.......... 5140........................... Missoula, MT........... 0.9958 Missoula, MT........... 5160........................... Mobile, AL............. 0.8595 Baldwin, AL............ Mobile, AL............. 5170........................... Modesto, CA............ 1.1506 Stanislaus, CA......... 5190........................... Monmouth-Ocean, NJ..... 1.1539 Monmouth, NJ........... Ocean, NJ.............. 5200........................... Monroe, LA............. 0.8721 Ouachita, LA........... [[Page 56104]] 5240........................... Montgomery, AL......... 0.8000 Autauga, AL............ Elmore, AL............. Montgomery, AL......... 5280........................... Muncie, IN............. 1.0569 Delaware, IN........... 5330........................... Myrtle Beach, SC....... 0.9327 Horry, SC.............. 5345........................... Naples, FL............. 1.0314 Collier, FL............ 5360........................... Nashville, TN.......... 1.0373 Cheatham, TN........... Davidson, TN........... Dickson, TN............ Robertson, TN.......... Rutherford TN.......... Sumner, TN............. Williamson, TN......... Wilson, TN............. 5380........................... Nassau-Suffolk, NY..... 1.4508 Nassau, NY............. Suffolk, NY............ 5483........................... New Haven-Bridgeport- 1.3014 Stamford-Waterbury- Danbury, CT. Fairfield, CT.......... New Haven, CT.......... 5523........................... New London-Norwich, CT. 1.2257 New London, CT......... 5560........................... New Orleans, LA........ 0.9609 Jefferson, LA.......... Orleans, LA............ Plaquemines, LA........ St. Bernard, LA........ St. Charles, LA........ St. James, LA.......... St. John The Baptist, LA. St. Tammany, LA........ 5600........................... New York, NY........... 1.5342 Bronx, NY.............. Kings, NY.............. New York, NY........... Putnam, NY............. Queens, NY............. Richmond, NY........... Rockland, NY........... Westchester, NY........ 5640........................... Newark, NJ............. 1.2359 Essex, NJ.............. Morris, NJ............. Sussex, NJ............. Union, NJ.............. Warren, NJ............. 5660........................... Newburgh, NY-PA........ 1.1818 Orange, NY............. Pike, PA............... 5720........................... Norfolk-Virginia Beach- 0.9123 Newport News, VA-NC. Currituck, NC.......... Chesapeake City, VA.... Gloucester, VA......... Hampton City, VA....... Isle of Wight, VA...... James City, VA......... Mathews, VA............ Newport News City, VA.. Norfolk City, VA....... Poquoson City, VA...... Portsmouth City, VA.... Suffolk City, VA....... Virginia Beach City, VA Williamsburg City, VA.. York, VA............... [[Page 56105]] 5775........................... Oakland, CA............ 1.6291 Alameda, CA............ Contra Costa, CA....... 5790........................... Ocala, FL.............. 1.0162 Marion, FL............. 5800........................... Odessa-Midland, TX..... 1.0745 Ector, TX.............. Midland, TX............ 5880........................... Oklahoma City, OK...... 0.9245 Canadian, OK........... Cleveland, OK.......... Logan, OK.............. McClain, OK............ Oklahoma, OK........... Pottawatomie, OK....... 5910........................... Olympia, WA............ 1.2070 Thurston, WA........... 5920........................... Omaha, NE-IA........... 1.0328 Pottawattamie, IA...... Cass, NE............... Douglas, NE............ Sarpy, NE.............. Washington, NE......... 5945........................... Orange County, CA...... 1.1828 Orange, CA............. 5960........................... Orlando, FL............ 1.0254 Lake, FL............... Orange, FL............. Osceola, FL............ Seminole, FL........... 5990........................... Owensboro, KY.......... 0.8863 Daviess, KY............ 6015........................... Panama City, FL........ 0.9636 Bay, FL................ 6020........................... Parkersburg-Marietta, 0.8649 WV-OH. Washington, OH......... Wood, WV............... 6080........................... Pensacola, FL.......... 0.8891 Escambia, FL........... Santa Rosa, FL......... 6120........................... Peoria-Pekin, IL....... 0.9329 Peoria, IL............. Tazewell, IL........... Woodford, IL........... 6160........................... Philadelphia, PA-NJ.... 1.1641 Burlington, NJ......... Camden, NJ............. Gloucester, NJ......... Salem, NJ.............. Bucks, PA.............. Chester, PA............ Delaware, PA........... Montgomery, PA......... Philadelphia, PA....... 6200........................... Phoenix-Mesa, AZ....... 1.0249 Maricopa, AZ........... Pinal, AZ.............. 6240........................... Pine Bluff, AR......... 0.8396 Jefferson, AR.......... 6280........................... Pittsburgh, PA......... 1.0166 Allegheny, PA.......... Beaver, PA............. Butler, PA............. Fayette, PA............ Washington, PA......... Westmoreland, PA....... 6323........................... Pittsfield, MA......... 1.0930 Berkshire, MA.......... 6340........................... Pocatello, ID.......... 1.0047 Bannock, ID............ [[Page 56106]] 6360........................... Ponce, PR.............. 0.6001 Guayanilla, PR......... Juana Diaz, PR......... Penuelas, PR........... Ponce, PR.............. Villalba, PR........... Yauco, PR.............. 6403........................... Portland, ME........... 1.0025 Cumberland, ME......... Sagadahoc, ME.......... York, ME............... 6440........................... Portland-Vancouver, OR- 1.1816 WA. Clackamas, OR.......... Columbia, OR........... Multnomah, OR.......... Washington, OR......... Yamhill, OR............ Clark, WA.............. 6483........................... Providence-Warwick- 1.1490 Pawtucket, RI. Bristol, RI............ Kent, RI............... Newport, RI............ Providence, RI......... Washington, RI......... 6520........................... Provo-Orem, UT......... 1.0467 Utah, UT............... 6560........................... Pueblo, CO............. 0.9150 Pueblo, CO............. 6580........................... Punta Gorda, FL........ 0.9587 Charlotte, FL.......... 6600........................... Racine, WI............. 0.9925 Racine, WI............. 6640........................... Raleigh-Durham-Chapel 1.0441 Hill, NC. Chatham, NC............ Durham, NC............. Franklin, NC........... Johnston, NC........... Orange, NC............. Wake, NC............... 6660........................... Rapid City, SD......... 0.9431 Pennington, SD......... 6680........................... Reading, PA............ 1.0191 Berks, PA.............. 6690........................... Redding, CA............ 1.1862 Shasta, CA............. 6720........................... Reno, NV............... 1.1082 Washoe, NV............. 6740........................... Richland-Kennewick- 1.1655 Pasco, WA. Benton, WA............. Franklin, WA........... 6760........................... Richmond-Petersburg, VA 1.0292 Charles City County, VA Chesterfield, VA....... Colonial Heights City, VA. Dinwiddie, VA.......... Goochland, VA.......... Hanover, VA............ Henrico, VA............ Hopewell City, VA...... New Kent, VA........... Petersburg City, VA.... Powhatan, VA........... Prince George, VA...... Richmond City, VA...... 6780........................... Riverside-San 1.1817 Bernardino, CA. Riverside, CA.......... San Bernardino, CA..... [[Page 56107]] 6800........................... Roanoke, VA............ 0.8902 Botetourt, VA.......... Roanoke, VA............ Roanoke City, VA....... Salem City, VA......... 6820........................... Rochester, MN.......... 1.2189 Olmsted, MN............ 6840........................... Rochester, NY.......... 0.9940 Genesee, NY............ Livingston, NY......... Monroe, NY............. Ontario, NY............ Orleans, NY............ Wayne, NY.............. 6880........................... Rockford, IL........... 0.9788 Boone, IL.............. Ogle, IL............... Winnebago, IL.......... 6895........................... Rocky Mount, NC........ 0.9687 Edgecombe, NC.......... Nash, NC............... 6920........................... Sacramento, CA......... 1.2581 El Dorado, CA.......... Placer, CA............. Sacramento, CA......... 6960........................... Saginaw-Bay City- 1.0198 Midland, MI. Bay, MI................ Midland, MI............ Saginaw, MI............ 6980........................... St. Cloud, MN.......... 1.0476 Benton, MN............. Stearns, MN............ 7000........................... St. Joseph, MO......... 0.8391 Andrew, MO............. Buchanan, MO........... 7040........................... St. Louis, MO-IL....... 0.9497 Franklin, MO........... Jefferson, MO.......... Lincoln, MO............ St. Charles, MO........ St. Louis, MO.......... St. Louis City, MO..... Warren, MO............. Clinton, IL............ Jersey, IL............. Madison, IL............ Monroe, IL............. St. Clair, IL.......... 7080........................... Salem, OR.............. 1.0646 Marion, OR............. Polk, OR............... 7120........................... Salinas, CA............ 1.5615 Monterey, CA........... 7160........................... Salt Lake City-Ogden, 1.0489 UT. Davis, UT.............. Salt Lake, UT.......... Weber, UT.............. 7200........................... San Angelo, TX......... 0.8713 Tom Green, TX.......... 7240........................... San Antonio, TX........ 0.9128 Bexar, TX.............. Comal, TX.............. Guadalupe, TX.......... Wilson, TX............. 7320........................... San Diego, CA.......... 1.1979 San Diego, CA.......... 7360........................... San Francisco, CA...... 1.5037 Marin, CA.............. San Francisco, CA...... San Mateo, CA.......... [[Page 56108]] 7400........................... San Jose, CA........... 1.5093 Santa Clara, CA........ 7440........................... San Juan-Bayamon, PR... 0.5476 Aguas Buenas, PR....... Barceloneta, PR........ Bayamon, PR............ Canovanas, PR.......... Carolina, PR........... Catano, PR............. Ceiba, PR.............. Comerio, PR............ Corozal, PR............ Dorado, PR Fajardo, PR............ Florida, PR............ Guaynabo, PR........... Humacao, PR............ Juncos, PR............. Los Piedras, PR........ Loiza, PR.............. Luguillo, PR........... Manati, PR............. Morovis, PR Naguabo, PR............ Naranjito, PR.......... Rio Grande, PR......... San Juan, PR........... Toa Alta, PR........... Toa Baja, PR........... Trujillo Alto, PR...... Vega Alta, PR.......... Vega Baja, PR.......... Yabucoa, PR............ 7460........................... San Luis Obispo- 1.1687 Atascadero-Paso Robles, CA. San Luis Obispo, CA.... 7480........................... Santa Barbara-Santa 1.1487 Maria-Lompoc, CA. Santa Barbara, CA...... 7485........................... Santa Cruz-Watsonville, 1.4856 CA. Santa Cruz, CA......... 7490........................... Santa Fe, NM........... 1.0841 Los Alamos, NM......... Santa Fe, NM........... 7500........................... Santa Rosa, CA......... 1.3861 Sonoma, CA............. 7510........................... Sarasota-Bradenton, FL. 1.0730 Manatee, FL............ Sarasota, FL........... 7520........................... Savannah, GA........... 1.0653 Bryan, GA.............. Chatham, GA............ Effingham, GA.......... 7560........................... Scranton-Wilkes-Barre- 0.9234 Hazleton, PA. Columbia, PA........... Lackawanna, PA......... Luzerne, PA............ Wyoming, PA............ 7600........................... Seattle-Bellevue- 1.2082 Everett, WA. Island, WA............. King, WA............... Snohomish, WA.......... 7610........................... Sharon, PA............. 0.8429 Mercer, PA............. 7620........................... Sheboygan, WI.......... 0.8961 Sheboygan, WI.......... 7640........................... Sherman-Denison, TX.... 0.9967 Grayson, TX............ 7680........................... Shreveport-Bossier 0.9624 City, LA. Bossier, LA............ Caddo, LA.............. Webster, LA............ [[Page 56109]] 7720........................... Sioux City, IA-NE...... 0.9323 Woodbury, IA........... Dakota, NE............. 7760........................... Sioux Falls, SD........ 0.9719 Lincoln, SD............ Minnehaha, SD.......... 7800........................... South Bend, IN......... 1.0627 St. Joseph, IN......... 7840........................... Spokane, WA............ 1.1345 Spokane, WA............ 7880........................... Springfield, IL........ 0.9226 Menard, IL............. Sangamon, IL........... 7920........................... Springfield, MO........ 0.9110 Christian, MO.......... Greene, MO............. Webster, MO............ 8003........................... Springfield, MA........ 1.1571 Hampden, MA............ Hampshire, MA.......... 8050........................... State College, PA...... 0.9712 Centre, PA............. 8080........................... Steubenville-Weirton, 0.9185 OH-WV. Jefferson, OH.......... Brooke, WV............. Hancock, WV............ 8120........................... Stockton-Lodi, CA...... 1.1501 San Joaquin, CA........ 8140........................... Sumter, SC............. 0.8288 Sumter, SC............. 8160........................... Syracuse, NY........... 1.0231 Cayuga, NY............. Madison, NY............ Onondaga, NY........... Oswego, NY............. 8200........................... Tacoma, WA............. 1.2353 Pierce, WA............. 8240........................... Tallahassee, FL........ 0.9068 Gadsden, FL............ Leon, FL............... 8280........................... Tampa-St. Petersburg- 0.9491 Clearwater, FL. Hernando, FL........... Hillsborough, FL....... Pasco, FL.............. Pinellas, FL........... 8320........................... Terre Haute, IN........ 0.9073 Clay, IN............... Vermillion, IN......... Vigo, IN............... 8360........................... Texarkana, AR- 0.8855 Texarkana, TX. Miller, AR............. Bowie, TX.............. 8400........................... Toledo, OH............. 1.0431 Fulton, OH............. Lucas, OH.............. Wood, OH............... 8440........................... Topeka, KS............. 0.9477 Shawnee, KS............ 8480........................... Trenton, NJ............ 1.1077 Mercer, NJ............. 8520........................... Tucson, AZ............. 0.9536 Pima, AZ............... 8560........................... Tulsa, OK.............. 0.9467 Creek, OK.............. Osage, OK.............. Rogers, OK............. Tulsa, OK.............. Wagoner, OK............ 8600........................... Tuscaloosa, AL......... 0.8689 Tuscaloosa, AL......... 8640........................... Tyler, TX.............. 1.0252 Smith, TX.............. [[Page 56110]] 8680........................... Utica-Rome, NY......... 0.8857 Herkimer, NY........... Oneida, NY............. 8720........................... Vallejo-Fairfield-Napa, 1.4422 CA. Napa, CA............... Solano, CA............. 8735........................... Ventura, CA............ 1.1691 Ventura, CA............ 8750........................... Victoria, TX........... 0.8856 Victoria, TX........... 8760........................... Vineland-Millville- 1.1103 Bridgeton, NJ. Cumberland, NJ......... 8780........................... Visalia-Tulare- 1.0239 Porterville, CA. Tulare, CA............. 8800........................... Waco, TX............... 0.8645 McLennan, TX........... 8840........................... Washington, DC-MD-VA-WV 1.1657 District of Columbia, DC. Calvert, MD............ Charles, MD............ Frederick, MD.......... Montgomery, MD......... Prince Georges, MD..... Alexandria City, VA.... Arlington, VA Clarke, VA............. Culpeper, VA........... Fairfax, VA............ Fairfax City, VA....... Falls Church City, VA.. Fauquier, VA........... Fredericksburg City, VA King George, VA Loudoun, VA............ Manassas City, VA...... Manassas Park City, VA. Prince William, VA..... Spotsylvania, VA....... Stafford, VA........... Warren, VA............. Berkeley, WV........... Jefferson, WV.......... 8920........................... Waterloo-Cedar Falls, 0.8551 IA. Black Hawk, IA......... 8940........................... Wausau, WI............. 1.0311 Marathon, WI........... 8960........................... West Palm Beach-Boca 1.0397 Raton, FL. Palm Beach, FL......... 9000........................... Wheeling, WV-OH........ 0.8491 Belmont, OH............ Marshall, WV........... Ohio, WV............... 9040........................... Wichita, KS............ 1.0215 Butler, KS............. Harvey, KS............. Sedgwick, KS........... 9080........................... Wichita Falls, TX...... 0.8366 Archer, TX............. Wichita, TX............ 9140........................... Williamsport, PA....... 0.9175 Lycoming, PA........... 9160........................... Wilmington-Newark, DE- 1.1567 MD. New Castle, DE......... Cecil, MD.............. 9200........................... Wilmington, NC......... 1.0006 Brunswick, NC.......... New Hanover, NC........ 9260........................... Yakima, WA............. 1.1237 Yakima, WA............. 9270........................... Yolo, CA............... 1.0316 Yolo, CA............... [[Page 56111]] 9280........................... York, PA............... 1.0040 York, PA............... 9320........................... Youngstown-Warren, OH.. 1.0170 Columbiana, OH......... Mahoning, OH........... Trumbull, OH........... 9340........................... Yuba City, CA.......... 1.1016 Sutter, CA............. Yuba, CA............... 9360........................... Yuma, AZ............... 0.9559 Yuma, AZ............... ------------------------------------------------------------------------ \1\ This column lists each MSA area name and each county or county equivalent, in the MSA area. Counties not listed in this Table are considered to be Rural Areas. Wage Index values for these areas are found in Table B. \2\ Wage index values are based on FY 1998 hospital cost report data before reclassification. This wage index is further adjusted. Wage index values greater than 0.8 are subject to a budget-neutrality adjustment of 1.063422. Wage index values below 0.8 are adjusted to be the greater of a 15-percent increase, subject to a maximum wage index value of 0.8, or an adjustment by multiplying the hospital wage index value for a given area by the budget-neutrality adjustment. We have completed all of these adjustments and included them in the wage index values reflected in this table. Table B.--Wage Index for Rural Areas ------------------------------------------------------------------------ MSA code No. Nonurban area Wage index \3\ ------------------------------------------------------------------------ 9901.............................. Alabama............. 0.8000 9902.............................. Alaska.............. 1.2614 9903.............................. Arizona............. 0.9232 9904.............................. Arkansas............ 0.8000 9905.............................. California.......... 1.0272 9906.............................. Colorado............ 0.9370 9907.............................. Connecticut......... 1.2843 9908.............................. Delaware............ 1.0197 9910.............................. Florida............. 0.9352 9911.............................. Georgia............. 0.8821 9912.............................. Hawaii.............. 1.1817 9913.............................. Idaho............... 0.9271 9914.............................. Illinois............ 0.8564 9915.............................. Indiana............. 0.9274 9916.............................. Iowa................ 0.8664 9917.............................. Kansas.............. 0.8307 9918.............................. Kentucky............ 0.8468 9919.............................. Louisiana........... 0.8078 9920.............................. Maine............... 0.9274 9921.............................. Maryland............ 0.9421 9922.............................. Massachusetts....... 1.2180 9923.............................. Michigan............ 0.9571 9924.............................. Minnesota........... 0.9608 9925.............................. Mississippi......... 0.8005 9926.............................. Missouri............ 0.8391 9927.............................. Montana............. 0.9204 9928.............................. Nebraska............ 0.8658 9929.............................. Nevada.............. 1.0344 9930.............................. New Hampshire....... 1.0399 9931.............................. New Jersey \4\...... .............. 9932.............................. New Mexico.......... 0.9226 9933.............................. New York............ 0.9089 9934.............................. North Carolina...... 0.9076 9935.............................. North Dakota........ 0.8379 9936.............................. Ohio................ 0.9218 9937.............................. Oklahoma............ 0.8046 9938.............................. Oregon.............. 1.0663 9939.............................. Pennsylvania........ 0.9153 9940.............................. Puerto Rico......... 0.5520 9941.............................. Rhode Island \4\.... .............. 9942.............................. South Carolina...... 0.9052 9943.............................. South Dakota........ 0.8360 9944.............................. Tennessee........... 0.8431 9945.............................. Texas............... 0.8201 9946.............................. Utah................ 0.9625 9947.............................. Vermont............. 1.0066 9948.............................. Virgin Islands...... 0.7759 9949.............................. Virginia............ 0.8764 9950.............................. Washington.......... 1.0856 [[Page 56112]] 9951.............................. West Virginia....... 0.8579 9952.............................. Wisconsin........... 0.9641 9953.............................. Wyoming............. 0.9302 9965.............................. Guam................ 1.0221 ------------------------------------------------------------------------ \3\ Wage index values are based on FY 1998 hospital cost report data before reclassification. This wage index is further adjusted. Wage index values greater than 0.8 are subject to a budget-neutrality adjustment of 1.063422. Wage index values below 0.8 are adjusted to be the greater of a 15-percent increase, subject to a maximum wage index value of 0.8, or an adjustment by multiplying the hospital wage index value for a given area by the budget-neutrality adjustment. We have completed all of these adjustments and have included them in the wage index values reflected in this table. \4\ All counties within the State are classified as urban. II. Waiver of Proposed Rulemaking We ordinarily publish a notice of proposed rulemaking in the Federal Register to provide a period for public comment before the provisions of a notice such as this take effect. We can waive this procedure, however, if we find good cause that a notice and comment procedure is impracticable, unnecessary, or contrary to the public interest and incorporate a statement of the finding and its reasons in the notice issued. We find it unnecessary to undertake notice and comment rulemaking as the statute requires annual updates to the hospice payment rates. The methodologies used to determine the wage index have been previously subject to public comments, and this notice merely reflects the application of those previously established methodologies. Therefore, for good cause, we waive notice and comment procedures. III. Regulatory Impact Analysis A. Overall Impact We have examined the impacts of this notice as required by Executive Order 12866 (September 1993, Regulatory Planning and Review), the Regulatory Flexibility Act (RFA) (September 16, 1980, Pub. L. 96- 354), section 1102(b) of the Act, the Unfunded Mandates Reform Act of 1995 (Pub.L. 104-4), and Executive Order 13132. In this notice, we identified the impact on hospices as a result of updating the hospice wage index for FY 2003. The methodology for computing the wage index was determined through a negotiated rulemaking committee and implemented in the August 8, 1997 Final Rule (62 FR 42860). This notice only updates the hospice wage index in accordance with that methodology. We believe these changes to be insignificant. As Table C below indicates, we estimate that total hospice payments will increase from last year by 0.3 percent, or $12,731,000. Executive Order 12866 directs agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). A regulatory impact analysis (RIA) must be prepared for major rules with economically significant effects ($100 million or more in any 1 year). We have determined that this notice is not an economically significant rule under this Executive Order. The RFA requires agencies to determine whether a rule will have a significant economic impact on a substantial number of small entities. For purposes of the RFA, small entities include small businesses, nonprofit organizations, and government agencies. Most hospital and most other providers and suppliers are small entities, either by nonprofit status or by having revenues of $5 million or less annually. (For details, see the Small Business Administration's regulation that set forth size standards for health care industries (65 FR 69432)). For purposes of the RFA, most hospices are small entities. Approximately 73 percent of Medicare certified hospices are identified as voluntary, government, or other agencies, and, therefore, are considered small entities. Because the National Hospice and Palliative Care Organization estimates that approximately 79 percent of hospice patients are Medicare beneficiaries, we have not considered other sources of revenue in this analysis. As discussed below, the estimated decreases in payment to hospices overall are very slight. The effects of this notice indicate that on a regional basis, urban hospices in the Middle Atlantic, East North Central, West North Central, West South Central, and Pacific regions will experience a slight decrease in payments. The payment decreases range from a minimum of 0.1 percent (East North Central region) to a maximum of 0.5 percent (Middle Atlantic region). The mid-range of the decrease in estimated payments for urban hospices falls within the Pacific urban region with a 0.3-percent decrease. Rural hospices in the Pacific region will also experience a slight decrease in payment of 0.7 percent. Therefore, based on an analysis of the wage index changes for FY 2003, hospices in the urban areas of the North Central (East and West), South Central (West), and Middle Atlantic regions will be impacted the most. This payment decrease to these small entities indicates that this notice will have an impact on a substantial number of small entities. However, nationwide, hospices will receive an overall slight increase in estimated payments. We estimate that total hospice payments will increase by 0.3 percent, or $12,731,000. Urban hospices will receive an increase in estimated payments of 0.1 percent and rural hospices will receive an increase in estimated payments of 2.1 percent. Rural hospices, with exception of the Pacific region, received the largest increase in payments for FY 2003. We estimate that rural hospice payments overall will increase by $9,860,000. Specifically, rural hospices in Puerto Rico are estimated to receive a 13.6-percent increase in payments for FY 2003. This anomaly is due to an increase in hospital wage data for FY 2002. Under the Medicare hospice benefit, hospices can provide four different levels of care days. The majority of the days provided by a hospice are routine home care days. Therefore, the number of routine home care days can be used as a proxy for the size of the hospice, that is, the more days of care provided, the larger the hospice. Using routine home care days as a proxy for size, our analysis indicates that, overall, the impact of the wage index update on small hospices will be positive. For example, the smallest hospices (those that provide only up to 1,754 days of routine home care) will experience an approximately 4.2 percent increase in hospice payments as a result of the wage [[Page 56113]] update. Overall, hospices will experience a positive increase in payments. Therefore, we certify that this rule will not have a significant impact on a substantial number of small entities, in accordance with the RFA. Furthermore, the wage index methodology was previously determined by consensus through a negotiated rulemaking committee that included representatives of national hospice associations; rural, urban, large and small hospices; multi-site hospices; and consumer groups. Based on all of the options considered, the committee agreed on the methodology described in the committee statement, and it was adopted into regulation in the August 8, 1997 final rule. The committee also agreed that this was favorable for the hospice community, as well as for beneficiaries. In developing the process for updating the wage index in the 1997 final rule, we fully considered the impact of this methodology on small entities and attempted to mitigate any potential negative effects. In addition, section 1102(b) of the Act requires us to prepare a regulatory impact analysis if a rule may have a significant impact on the operations of a substantial number of small rural hospitals. This analysis must conform to the provisions of section 604 of the RFA. For purposes of section 1102(b) of the Act, we define a small rural hospital as a hospital that is located outside an MSA and has fewer than 100 beds. We have determined that this rule will not have a significant impact on the operations of a substantial number of small rural hospitals. Section 202 of the Unfunded Mandates Reform Act of 1995 also requires that agencies assess anticipated costs and benefits before issuing any rule that may result in an expenditure in any 1 year by State, local, and tribal governments, in the aggregate, or by the private sector, of $110 million or more. This notice has no consequential effect on State, local, or tribal governments. We believe the private sector costs of this notice fall below the threshold as well. We have determined that this rule will not have a significant impact on the operations of a substantial number of small rural hospitals. We have reviewed this notice under the threshold criteria of Executive Order 13132, Federalism, and have determined that this notice will not have a negative impact on the rights, roles, and responsibilities of State, local, or tribal governments. B. Anticipated Effects We have compared estimated payments using the FY 1983 hospice wage index to estimated payments using the FY 2003 wage index and determined the current hospice rates to be budget-neutral. This impact analysis compares hospice payments using the FY 2002 hospice wage index to the estimated payments using the FY 2003 wage index. The data used in developing the quantitative analysis for this notice were obtained from the March 2002 update of the national claims history file of all bills submitted during FY 2001. We deleted bills from hospices that have since closed. Table C below demonstrates the results of our analysis. In Column 2 of Table C, we indicate the number of routine home care days that were included in our analysis, although the analysis was performed on all types of hospice care. Column 3 of Table C indicates payments that were made using the FY 2002 wage index. Column 4 of Table C is based on FY 2001 claims (for hospices in business during that time period) and estimates payments to be made to hospices using the FY 2003 wage index. The final column, which compares Columns 3 and 4, shows the percent change in estimated hospice payments made based on the category of the hospice. Table C categorizes hospices by various geographic and provider characteristics. The first row displays the results of the impact analysis for all Medicare certified hospices. The second and third rows of the table categorize hospices according to their geographic location (urban and rural). Our analysis indicated that there are 1,327 hospices located in urban areas and 854 hospices located in rural areas. The next two groupings in the table indicate the number of hospices by census region, also broken down by urban and rural hospices. The sixth grouping shows the impact on hospices based on the size of the hospice's program. We determined that the majority of hospice payments are made at the routine home care rate. Therefore, we based the size of each individual hospice's program on the number of routine home care days provided in 2001. The next grouping shows the impact on hospices by type of ownership. The final grouping shows the impact on hospices defined by whether they are provider-based or freestanding. The results of our analysis shows that the greatest increases in payment are for rural areas in the West South Central, Mountain and Puerto Rico regions, with a 7.2 percent, 2.5 percent, and 13.6 percent increase, respectively. The greatest decreases in payment are for urban areas in the Middle Atlantic and Pacific regions. The breakdown by size, type of ownership, and facility base showed an increase in payments to almost all hospice programs. Small hospice programs showed significant increases of about 4 percent, while larger programs experienced only a negligible increase. In terms of hospice base, hospital-based hospices showed the greatest estimated payment increase while hospices affiliated with skilled nursing facilities showed the smallest amount of payment increase. Table C.--Impact of Hospice Wage Index Change ---------------------------------------------------------------------------------------------------------------- Estimated Number of Payments using Payments using Percent Change By Geographic Location Number of Routine Home FY 2002 Wage FY 2003 Wage in Hospice Hospices Care Days in Index in Index in Payments Thousands Thousands Thousands (1) (2) (3) (4) (5) ---------------------------------------------------------------------------------------------------------------- All Hospices....................... 2,181 28,249 3,684,027 3,696,758 0.3 Urban Hospices................. 1,327 23,705 3,207,208 3,210,078 0.1 Rural Hospices................. 854 4,545 476,820 486,680 2.1 By Region--Urban: New England.................... 87 755 116,018 116,611 0.5 Middle Atlantic................ 166 2,651 380,513 378,736 -0.5 South Atlantic................. 184 5,216 755,293 759,251 0.5 [[Page 56114]] East North Central............. 224 3,861 515,761 515,007 -0.1 East South Central............. 98 1,639 191,446 192,498 0.5 West North Central............. 97 1,443 170,906 170,654 -0.1 West South Central............. 183 3,337 415,324 414,764 -0.1 Mountain....................... 89 1,635 230,315 231,781 0.6 Pacific........................ 171 2,885 410,028 408,742 -0.3 Puerto Rico.................... 28 283 21,604 22,035 2.0 By Region--Rural: New England.................... 27 84 9,942 9,995 0.5 Middle Atlantic................ 34 200 22,721 22,770 0.2 South Atlantic................. 127 932 99,489 101,282 1.8 East North Central............. 139 675 72,904 73,109 0.3 East South Central............. 88 792 78,897 80,363 1.9 West North Central............. 180 499 53,251 53,931 1.3 West South Central............. 105 707 64,846 69,525 7.2 Mountain....................... 93 336 37,037 37,954 2.5 Pacific........................ 57 293 35,822 35,580 -0.7 Puerto Rico.................... 4 28 1,911 2,171 13.6 Routine Home Care Days: 0-1,754 Days................... 342 309 35,324 36,811 4.2 1,754-4,373 Days............... 445 1,337 149,372 151,600 1.5 4,373-9,681 Days............... 543 3,698 433,227 437,293 0.9 9,681+Days..................... 850 22,540 3,021,406 3,026,583 0.2 Type of Ownership: Voluntary...................... 1,335 17,593 2,304,550 2,308,749 0.2 Proprietary.................... 626 9,872 1,286,655 1,294,446 0.6 Government..................... 185 646 76,624 77,398 1.0 Other.......................... 35 139 16,199 16,164 -0.2 Hospice Base: Freestanding................... 960 17,736 2,336,621 2,344,044 0.3 Home Health Agency............. 661 6,184 808,876 810,740 0.2 Hospital....................... 543 4,172 514,913 518,370 0.7 Skilled Nursing Facility....... 17 158 23,617 23,604 -0.1 ---------------------------------------------------------------------------------------------------------------- C. Conclusion Our impact analysis compared hospice payments using the FY 2002 wage index to the estimated payments using the FY 2003 wage index. Through the analysis, we estimate that total hospice payments will increase from last year by 0.3 percent, or $12,731.000. Additionally, we compared estimated payments using the FY 1983 hospice wage index to estimated payments using the FY 2003 wage index and determined the current hospice wage index to be budget neutral, as required by the negotiated rulemaking committee. We have determined that this rule is not an economically significant rule under Executive Order 12866. We do believe that this rule will not have a significant economic impact on a substantial number of small entities, but took any negative effects into consideration during the negotiated rulemaking process. We have determined that this rule will not have a significant impact on the operations of a substantial number of small rural hospitals. Finally, this rule will have no consequential effect on State, local, or tribal governments. OMB Review In accordance with the provisions of Executive Order 12866, the Office of Management and Budget reviewed this regulation. Authority: Section 1814(i) of the Social Security Act (42 U.S.C. 1395f (i)(1))(Catalog of Federal Domestic Assistance Program No. 93.773 Medicare--Hospital Insurance Program; and No. 93.774, Medicare--Supplementary Medical Insurance Program) Dated: June 20, 2002. Thomas A. Scully, Administrator, Centers for Medicare & Medicaid Services. Dated: July 23, 2002. Tommy G. Thompson, Secretary. [FR Doc. 02-22018 Filed 8-29-02; 8:45 am] BILLING CODE 4120-01-P