Ensuring Outpatient Quality for Rural States Act
Sponsored By: Representative Tokuda
Introduced
Summary
A targeted cost-of-living adjustment to the non-labor portion of Medicare outpatient payments for hospitals in Alaska and Hawaii. This bill would let the Medicare Secretary adjust the non-labor part of hospital outpatient department payments to reflect unique local costs in Alaska and Hawaii, using the existing adjustment method and starting for services on or after January 1, 2026.
Show full summary
- Hospitals in Alaska and Hawaii: The Secretary may raise the non-labor portion of Medicare payments for hospital outpatient department services to account for state-specific cost differences.
- Timing and scope: The authority applies only to covered outpatient department services furnished on or after January 1, 2026, and only to the non-labor portion of those payments.
*This change allows the Secretary to increase non-labor outpatient payments for hospitals in Alaska and Hawaii and may increase Medicare spending because adjustments are not required to be budget neutral.*
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Higher Medicare outpatient pay in Alaska and Hawaii
If enacted, Medicare could raise some hospital outpatient payments in Alaska and Hawaii. The HHS Secretary could raise the non-labor part of rates, using the current cost-of-living method. Increases could happen without offsetting cuts elsewhere. This would start for services on or after January 1, 2026. Changes would be optional and only for hospital outpatient care in those two states.
Sponsors & CoSponsors
Sponsor
Tokuda
HI • D
Cosponsors
Begich
AK • R
Sponsored 6/30/2025
Case
HI • D
Sponsored 7/2/2025
Roll Call Votes
No roll call votes available for this bill.
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