A differential (8½ percent of routine inpatient nursing salary costs) added to the costs of such services to reflect the supposedly above average costs of providing routine inpatient nursing care to Medicare beneficiaries. Medicare reimburses hospitals more by this amount for nursing services than do other insurance programs which cover the general population. There has been much recent controversy over the need for the differential.
An allowance originally added to payments for Medicare patients in recognition of the greater cost of providing nursing services to elderly patients.