Recommendation 5-1: The committee recommends that wage indexes be adjusted using formulas based on commuting patterns for health care workers who reside in a county located in one labor market but commute to work in a county located in another labor market. Recommendation 6B: The secretary should establish a hospital compensation index that is adjusted at the county level and smooths large differences between counties.
Recommendation 5-2: The committee’s recommendations are intended to replace the system of geographic reclassification and exceptions that is currently in place for health care providers. Recommendation 6A: Congress should repeal the existing hospital wage index statute, including reclassifications and exceptions, and give the secretary authority to establish new wage index systems.

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