The federal government has approved a one-year extension of Maryland's unique rate-setting system for hospital services.
The extension announced Monday will give the federal government time to complete its review and consider four years of performance through the end of 2017.
Maryland's current all-payer hospital model contract will be extended from an expiration date of Dec. 31, 2018 to Dec. 31, 2019.
Maryland modernized its one-of-a-kind Medicare waiver four years ago to move the system away from reimbursing hospitals on a fee-for-service basis to a fixed budget.
The waiver allows Medicare payments to be based on rates set by a Maryland commission, instead of national federal payment principals.
Maryland operates the nation's only all-payer hospital rate regulation system.