HR 8109
Save Struggling Hospitals Act
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Bill overview
This bill, the Save Struggling Hospitals Act, aims to adjust how Medicare reimburses hospitals, specifically those with lower wages in their area. It modifies the Medicare low-wage index policy to provide a higher reimbursement rate for these hospitals, recognizing the challenges they face in attracting and retaining staff. The adjustment is designed to help these hospitals maintain financial stability and continue providing essential care. The changes are implemented in a budget-neutral manner, with specific limitations to prevent unintended consequences.
Key provisions
- Increases reimbursement for hospitals with area wage indexes below the 25th percentile.
- Adjusts the area wage index based on the difference between the hospital's wage index and the 25th percentile across all hospitals.
- The adjustment applies to discharges occurring on or after October 1, 2019.
- The changes are implemented in a budget-neutral manner.
- Limits adjustments to prevent decreases in the area wage index for hospitals with indexes below the 75th percentile.
- Ensures the adjusted area wage index is at least 95% of the previous year's index.
Who is affected
- Hospitals
- Medicare
- Patients receiving Medicare care
Notable changes
- Modifies the existing Medicare low-wage index policy.
- Introduces a formula for adjusting reimbursement rates based on a hospital's area wage index relative to the 25th percentile.
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Primary sponsor
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119th CONGRESS — 2d Session
H. R. 8109
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend title XVIII of the Social Security Act to codify the Medicare low-wage index hospital policy.
This Act may be cited as the Save Struggling Hospitals Act
.
Section 1886(d)(3)(E) of the Social Security Act (42 U.S.C. 1395ww(d)(3)(E)) is amended—
in clause (i), in the first sentence, by striking or (iv)
and inserting , (iv), or (v)
; and
Pursuant to the fourth sentence of clause (i), this clause shall be applied in a budget neutral manner. Any adjustments made for the purposes of such application of budget neutrality may not—
decrease the area wage index applicable under this subparagraph to a hospital with an area wage index (determined without regard to this clause) below the 75th percentile area wage index for the fiscal year; or