Proposed Cuts to CAHs in President’s Budget

The President’s budget released this week includes proposed cuts to Critical Access Hospitals (CAHs). According to the budget, “Medicare makes a number of special payments to account for the unique challenges of delivering medical care to beneficiaries in rural areas. These payments continue to be important; however, in specific cases, the adjustments may be greater than necessary to ensure continued access to care.” The Administration proposes to reduce payments from 101 percent to 100 percent of reasonable costs, effective in 2013, and to eliminate the CAH designation for those that are fewer than 10 miles from the nearest hospital, effective in 2014. For more information, click here