Ensuring Outpatient Quality for Rural States Act
Sponsored By: Senator Dan Sullivan
Introduced
Summary
Would apply a targeted cost-of-living adjustment to the non-labor portion of Medicare hospital outpatient payments for Alaska and Hawaii. This change would let Medicare account for the unusual cost structures of hospitals in those states and would take effect for outpatient services furnished on or after January 1, 2026.
Show full summary
- Hospitals in Alaska and Hawaii: Could receive higher Medicare outpatient payments for the non-labor portion of costs by using the same COLA method already used for inpatient payments. This targets the unique operating conditions of facilities in those states.
- Medicare patients in Alaska and Hawaii: May see more financially supported local outpatient services if hospitals receive adjusted payments that reflect higher non-labor costs.
- Medicare program and federal oversight: Gives the Health Secretary discretion to apply the adjustment and explicitly allows the change to be non-budget-neutral. The measure does not create a new mandatory appropriation.
*Because the adjustment is explicitly not required to be budget neutral, this change could increase Medicare spending.*
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Higher Medicare outpatient pay for Alaska, Hawaii
If enacted, HHS would be allowed to raise the non-labor part of Medicare outpatient payments for hospitals in Alaska and Hawaii. The change would apply to services furnished on or after January 1, 2026. HHS could use the same COLA method already used for some hospitals. The bill says the adjustment would not have to be budget neutral, so payments could rise and hospitals might see more revenue. Medicare patients in those states could see improved access to care as a result.
Sponsors & CoSponsors
Sponsor
Dan Sullivan
AK • R
Cosponsors
Brian Schatz
HI • D
Sponsored 2/12/2025
Lisa Murkowski
AK • R
Sponsored 2/12/2025
Roll Call Votes
No roll call votes available for this bill.
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