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<strong>CMS</strong>-1403-FC<br />

proposed to use the FY 2009 wage index data (collected from<br />

cost reports <strong>submitted</strong> by hospitals for cost reporting<br />

periods beginning during FY 2005), to compute the ESRD<br />

composite payment rates effective beginning<br />

January 1, 2009.<br />

(1) CY 2009 Classification of Certain New England Counties<br />

We are addressing the change in the treatment of “New<br />

England deemed counties” (that is, those counties in New<br />

England listed in §412.64(b)(1)(ii)(B) that were deemed to<br />

part of urban areas under section 601(g) of the Social<br />

Security Amendments of 1983), that were made in the FY 2008<br />

IPPS final rule with comment period (72 FR 47337 through<br />

47338). These counties include the following: Litchfield<br />

County, Connecticut; York County, Maine; Sagadahoc County,<br />

Maine; Merrimack County, New Hampshire; and Newport County,<br />

Rhode Island. Of these five “New England deemed counties”,<br />

three (York County, Sagadahoc County, and Newport County)<br />

are also included in the MSAs defined by OMB, and<br />

therefore, used in the calculations of the urban hospital<br />

wage index values reflected in the ESRD composite payment<br />

rates. The remaining two counties, Litchfield County and<br />

Merrimack County, are geographically located in areas that<br />

are considered “rural” under the current IPPS and ESRD<br />

composite payment system labor market definitions, but have<br />

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