HR7145119th CongressWALLET

To amend title XIX of the Social Security Act to establish a definition of essential health system in statute and for other related purposes.

Sponsored By: Representative Trahan

Introduced

Summary

This bill would create an "Essential Health System" designation for hospitals that serve large numbers of Medicaid and low‑income patients. It would also require MACPAC to publish an index of those hospitals and allow payment policies to target support for them.

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  • Hospitals that are subsection (d) hospitals, are non‑Federal governmental or private nonprofits, and that in at least two of the past three fiscal years meet high‑Medicaid or high‑uncompensated care tests could qualify. One specific threshold is a Medicare disproportionate patient percentage of at least 35 percent.
  • The designation would be effective for five years and hospitals would face five‑year redesignation cycles if they continue to meet the tests.
  • The Medicare Payment Advisory Commission (MACPAC) must, within six months and then by August 1 each year, publish a list and an Essential Health System index for subsection (d) hospitals using percentile rankings based on the three most recent fiscal years of Medicare inpatient prospective payment system data. The bill authorizes payment policies that use these criteria to provide targeted support and help preserve essential community services.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Identify and Support Safety-Net Hospitals

If enacted, the bill would define which hospitals are "essential health systems." A hospital would qualify if it is a subsection (d) hospital, is non‑Federal government or private nonprofit, and meets at least one test in 2 of the last 3 fiscal years. The three tests are: a Medicare disproportionate patient percentage of at least 35%; an uncompensated care payment factor of at least 0.0005; or a state‑adjusted rank in the top 16th percentile for those measures. The HHS Secretary would use data from the Medicare inpatient prospective payment system final rules for the three most recent fiscal years. Designation would last five years if the hospital keeps meeting the tests each year, and redesignation would occur in five‑year cycles. MACPAC would publish an annual list and an index showing each hospital's percentile rank locally, by State, and nationally, plus a composite average. MACPAC would deliver the first list within six months after enactment and then by August 1 each year. MACPAC would also be authorized to consider payment policies that use these criteria to support these hospitals and protect access.

Sponsors & CoSponsors

Sponsor

Trahan

MA • D

Cosponsors

  • Rep. Valadao, David G. [R-CA-22]

    CA • R

    Sponsored 1/16/2026

  • Ciscomani

    AZ • R

    Sponsored 1/16/2026

  • Rep. Carter, Troy A. [D-LA-2]

    LA • D

    Sponsored 1/16/2026

  • Rep. Veasey, Marc A. [D-TX-33]

    TX • D

    Sponsored 1/16/2026

  • Soto

    FL • D

    Sponsored 1/16/2026

  • Rep. Kiggans, Jennifer A. [R-VA-2]

    VA • R

    Sponsored 2/4/2026

  • Rep. Pettersen, Brittany [D-CO-7]

    CO • D

    Sponsored 2/4/2026

  • Bilirakis

    FL • R

    Sponsored 3/26/2026

  • Rep. Torres, Ritchie [D-NY-15]

    NY • D

    Sponsored 4/22/2026

  • Rep. Wagner, Ann [R-MO-2]

    MO • R

    Sponsored 4/22/2026

  • Rep. Owens, Burgess [R-UT-4]

    UT • R

    Sponsored 4/22/2026

  • Rep. Cleaver, Emanuel [D-MO-5]

    MO • D

    Sponsored 4/22/2026

  • Sewell

    AL • D

    Sponsored 4/22/2026

  • Balderson

    OH • R

    Sponsored 5/12/2026

Roll Call Votes

No roll call votes available for this bill.

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