TRENTON, N.J. (AP) — New Jersey is among seven states benefiting from an obscure provision tucked into the federal health care law.
The change involves rules used to adjust Medicare payments to hospitals for the difference in labor costs around the country.
It means New Jersey stands to gain $54 million each year, a windfall second only to Massachusetts — which will gain $275 million a year.
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But the new payment rates, due to take effect Oct. 1, have drawn sharp criticism from officials in dozens of states that stand to lose funds. If they remain unchanged, the biggest loser would be New York, which would be out $47.5 million.
Medicare officials declined comment Thursday. But in another regulation issued this year, Medicare expressed concern with what it termed the "manipulation" of its rules.
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