Citizen Portal
Sign In

Members press HHS on rural hospital wage index, staff cuts and NIOSH reinstatements; Kennedy pledges technical support

3313096 · May 14, 2025

Get AI-powered insights, summaries, and transcripts

Subscribe
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Committee members raised concerns about the Medicare area wage index's effect on rural hospitals and asked about staff cuts at HHS; Secretary Kennedy said statutory change is required on the wage index and that HHS will provide studies and technical assistance, and he confirmed reinstatements at NIOSH.

Representatives raised the financial stress on rural hospitals tied to the Medicare area wage index and asked HHS for technical assistance and statutory remedies.

A member described how the area wage index, which CMS uses to adjust hospital reimbursement, can leave low‑wage rural hospitals unable to raise wages and compete, increasing the risk of closure. Kennedy said the Trump administration had attempted earlier reforms and that a court decision had complicated remedies; he said HHS lacks authority to change the statutory wage index but pledged to provide technical support and studies to help Congress craft a statutory fix.

Separately, Rep. Alex Moore (West Virginia) thanked Kennedy for reinstating NIOSH employees and confirmed the black‑lung screening and respirator testing programs would return to full operation; Kennedy said about 328 NIOSH employees had been reinstated, with a portion in Morgantown and Cincinnati.

Why it matters: Rural hospitals provide emergency and primary care in areas where alternatives may be hours away. Representatives said changes to the wage index can have direct local consequences. Occupational health programs at NIOSH support worker protections in sectors such as mining; reinstatements were welcomed by members from affected districts.

Details

- Members described the area wage index as budget‑neutral in CMS reimbursement and said it disadvantages low‑wage hospitals in rural areas; Kennedy said statutory change is needed and pledged technical support for congressional action.

- Kennedy confirmed the reinstatement of about 328 NIOSH employees and said programs including coworkers health surveillance and respirator testing would be operational.

Ending

Members asked Kennedy to work with CMS and Congress to develop statutory solutions for the area wage index and thanked the secretary for restoring NIOSH staff and programs; no funding decisions were made in the hearing.