U.S. Senator Katie Britt Joins Representative Robert Aderholt, Alabama Delegation in Letter to CMS Administrator Dr. Oz Urging Less Restrictive Wage Index System

WASHINGTON, D.C.— U.S. Senator Katie Britt (R-Ala.) recently joined Representative Robert Aderholt (R-Ala.) and the entire Alabama congressional delegation insending a letterto Centers for Medicare and Medicaid Services (CMS) Administrator Mehmet Oz.
“We join together in asking CMS to use its regulatory authority to implement a less restrictivereclassification mechanism for the lowest wage index hospitals by allowing a low wage index provider that is within fifty (50) miles of a higher paid wage area (urban or rural) to reclassify to that area and receive the wage index that is paid to hospitals in that area,”wrote the Members.“Extending the proximity requirement for reclassification to 50 miles from the existing 15-mile (urban) and 35-mile (rural) proximity requirements mirrors actual commuting patterns of hospital staff, particularly in rural and low wage index areas, ensuring reclassification reflects competitive labor markets accessible to the workforce.”
They continued,“Rural healthcare in Alabama and across our nation is in crisis. Hospitals are being forced to face closure due to financial shortfalls. This simple extension of the reclassification proximity requirements to 50 miles will result in a financial benefit just to Alabama of approximately $460,000,000, with those hospitals in the most threatened rural areas receiving the most benefit. This change could, quite simply, save rural healthcare.”
“We deeply appreciate CMS’s consideration of the proposed low quartile reclassification mechanism, avital step toward ensuring a fair and equitable wage index system. By addressing extreme wage disparities, this change will empower low-wage hospitals to sustain critical services, bolstering healthcare access for the most vulnerable communities and populations. Your commitment to equity in Medicare payments will have a profound impact, safeguarding care for those who need it most, and we are grateful for your leadership in advancing this transformative reform … The Alabama delegation is united in working together with the Administration on this critical issue – for the health and survival of our rural communities,”the Members concluded.
Senator Tommy Tuberville (R-Ala.) and Representatives Barry Moore (R-Ala.), Shomari Figures (D-Ala.), Mike Rogers (R-Ala.), Dale Strong (R-Ala.), Gary Palmer (R-Ala.), and Terri Sewell (D-Ala.) joined Senator Britt and Representative Aderholt in sending the letter. The full text can be viewedhere.
Senator Britt continues to make health care, including rural health care, a top legislative priority. Earlier this year, she reintroducedbipartisan legislation, theRural Obstetrics Readiness Act,which would offer support for rural health care facilities to provide urgent obstetric care.
Last Congress, Senator Brittsecured significant fundingin the FY24Labor, Health and Human Services, Education, and Related Agencies Appropriations Actto modernize and upgrade medical equipment and rural health services in Alabama, and has continued to makecritical health care funding a priorityin FY26 appropriations.
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