Save Struggling Hospitals Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Overview
This bill, the Save Struggling Hospitals Act, modifies Medicare’s hospital payment system to provide additional financial support to hospitals with lower-than-average wages in their areas. Specifically, it adjusts the ‘area wage index,’ which is used to determine hospital reimbursement rates, for hospitals that fall below the 25th percentile of all hospitals. This adjustment aims to compensate for the challenges these hospitals face due to lower local wages, ensuring they receive adequate payment for their services. The changes are designed to be implemented in a way that maintains budget neutrality.
Key provisions
- Increases the area wage index for hospitals with wages below the 25th percentile.
- The increase is 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 must be applied in a budget-neutral manner.
- Protects hospitals with wage indexes below the 75th percentile.
- Limits the adjustment to no less than 95% of the previous year’s index.
Who is affected
- Medicare hospitals
- Hospitals with low wages
- Medicare beneficiaries
Notable changes
- Codifies a specific policy regarding the area wage index adjustment.
- Creates a tiered adjustment based on hospital wage levels.
Bill text
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Sponsors
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7 on record
Primary sponsor
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