Needed: Medicare historian

I guess I need a lot of help today. Here’s my second request for information of the day.

Once upon a time, Medicare paid hospitals their reported costs plus 2%. It was a sure way to explode federal health spending and it did. This cost+2% system ended, but I don’t know when any more precisely than before 1980. I’ve been e-mailing experts on Medicare and so far those who have returned my e-mail don’t know either. But surely somebody does.

If you know when and how Medicare cost+2% hospital reimbursement ceased, or know where I can look, please tell me. Anyone who can provide a cite-able reference gets the grand prize: two free round-trip journeys to a place of mental tranquility of your choosing, redeemable by cathartic bellowing into a stiff wind.

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