Wage Index Files

Under the LTCH PPS, the labor-related portion of the Federal rate is adjusted by the applicable LTCH PPS wage index value to account for differences in LTCH area wage levels based on the labor market area in which the LTCH is located (see § 412.525(c)). The applicable LTCH PPS wage index is computed using average hourly wage data from inpatient acute care hospitals without regard to reclassification under sections 1886(d)(8) or 1886(d)(10) of the Act. When the LTCH PPS was implemented, a 5-year transition to the full wage adjustment was established. The applicable wage index phase-in percentages, which were based on the start of a LTCH's cost reporting period, were as follows: 1/5^th (20 percent for cost reporting periods beginning on or after October 1, 2002; 2/5^th (40 percent for cost reporting periods beginning on or after October 1, 2003; 2/5^th (40 percent for cost reporting periods beginning on or after October 1, 2004 and 4/5^th (80 percent for cost reporting periods beginning on or after October 1, 2005.  The full (100 percent) LTCH PPS wage index values are applicable for determining LTCH PPS payments beginning with cost reporting periods beginning on or after October 1, 2006. From July 1, 2003 through September 30, 2009, the applicable LTCH PPS wage index values are updated annually for each rate year (July 1st through June 30th) based on the most recent available inpatient acute care hospital wage data.  Beginning October 1, 2009, the LTCH wage index values are updated annually for each year (October 1st through September 30th) based on the most recent available inpatient acute care hospital data. 

Note: for FY 2015, CMS updated the labor market area used under the LTCH PPS based on the updated CBSA delineations, and provided a for a 1-year transitional ‘blended’ wage index for existing LTCHs that would experience a decrease in it area wage index value solely due to the adoption of the updated CBSA delineations.  For additional details, refer to the FY 2015 IPPS/LTCH PPS final rule (79 FR 50183 through 50185).   

(See the "downloads" section below for all of the LTCH PPS wage index files since the implementation of the LTCH PPS.)