Over 64 million Americans live in rural areas. Rural Americans are at higher risk of dying early than their urban counterparts from the five leading causes of death – many of which are preventable. Addressing urban-rural health disparities has become a national focal point, especially as states apply for funding to improve rural health through the $50 billion Rural Health Transformation Program.
However, Medicare’s main tool for adjusting payments based on patient risk underpredicts mortality and overpredicts spending for rural beneficiaries, a new study by LDI Senior Fellows Kristin Linn, Amol Navathe, and colleagues found. But the tool works well for urban beneficiaries.
“By adopting data-driven policy solutions,” said Linn, “CMS and other stakeholders can mitigate disparities and improve health equity for one of Medicare’s most vulnerable populations.”