Bills · S 551
IN COMMITTEE· 119TH CONGRESS
Senate BillS 551Inflation and pricesMedicare
Ensuring Outpatient Quality for Rural States Act
INTRO FEB 12· LAST ACTION FEB 12
READING
2MIN
COSPONSORS
2BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because hospitals in high-cost, remote states like Alaska and Hawaii often face unique financial challenges in providing healthcare. The current Medicare payment system may not fully account for the significantly higher cost of goods, supplies, and utilities in these regions.
If this bill becomes law, it could provide a crucial financial boost to these hospitals, helping them cover their operating expenses, invest in equipment, and retain staff. This could be vital for ensuring that residents in these states continue to have access to necessary outpatient care. If the bill does not pass, these hospitals might continue to struggle with uncompensated high costs, potentially leading to reduced services, financial difficulties, or even closures, which would negatively impact access to care for the populations they serve.
KEY PROVISIONS
4AI-extractedPROVISION 01
Allows Medicare to apply a cost-of-living adjustment (COLA) to the non-labor portion of payments for hospital outpatient services in Alaska and Hawaii.
This directly addresses the higher operating costs for hospitals in these specific high-cost states by increasing their Medicare revenue for outpatient care.
PROVISION 02
The adjustment mechanism is similar to how COLA is applied to the non-labor portion of inpatient services.
It creates a consistent approach for recognizing high non-labor costs across different types of hospital services in these states.
PROVISION 03
The bill explicitly states that these adjustments will not be applied in a budget-neutral manner.
This means any increase in payments for these hospitals will not require cuts to other Medicare payments, potentially leading to an overall increase in federal spending.
PROVISION 04
The changes apply to covered outpatient department (OPD) services furnished on or after January 1, 2026.
This sets a clear effective date for when the new payment adjustments could begin.
SPONSORSHIP
1 + 2
R· Alaska
YRS IN OFFICE
11
BILLS LED
72
COSPONSOR BREAKDOWNBIPARTISAN · 100%
DEM 1 REP 1 IND 0
ACTION TIMELINE
2 EVENTSFEB 12
Introduced in Senate
FEB 12
Read twice and referred to the Committee on Finance.
BILL INFO
TypeSenate Bill
NumberS 551
Congress119th
StatusIn Committee
IntroducedFeb 12, 2025
Last actionFeb 12, 2025
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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED FEB 12, 2025
Senate BillS 551Inflation and pricesMedicare
Ensuring Outpatient Quality for Rural States Act
INTRODUCED FEB 12, 2025· LAST ACTION FEB 12, 2025
PASSAGE CHANCES
—%
READING
2 min
COSPONSORS
2
COMPLEXITY
Moderate
