Adjustment for geographic variations in health costs

Official source

(A) In general For purposes of paragraph (1)(A)(ii), the “State cost factor” for a State for a fiscal year equal to the sum of— (i) 0.15, and (ii) 0.85 multiplied by the ratio of— (I) the annual average wages per employee for the State for such year (as determined under subparagraph (B)), to (II) the annual average wages per employee for the 50 States and the District of Columbia.

(B) Annual average wages per employee For purposes of subparagraph (A), the “annual average wages per employee” for a State, or for all the States, for a fiscal year is equal to the average of the annual wages per employee for the State or for the 50 States and the District of Columbia for employees in the health services industry (SIC code 8000), as reported by the Bureau of Labor Statistics of the Department of Labor for each of the most recent 3 years before the beginning of the calendar year in which such fiscal year begins.

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Adjustment for geographic variations in health costs

Official source

(A) In general For purposes of paragraph (1)(A)(ii), the “State cost factor” for a State for a fiscal year equal to the sum of— (i) 0.15, and (ii) 0.85 multiplied by the ratio of— (I) the annual average wages per employee for the State for such year (as determined under subparagraph (B)), to (II) the annual average wages per employee for the 50 States and the District of Columbia.

(B) Annual average wages per employee For purposes of subparagraph (A), the “annual average wages per employee” for a State, or for all the States, for a fiscal year is equal to the average of the annual wages per employee for the State or for the 50 States and the District of Columbia for employees in the health services industry (SIC code 8000), as reported by the Bureau of Labor Statistics of the Department of Labor for each of the most recent 3 years before the beginning of the calendar year in which such fiscal year begins.