Hospital Funding Reform: Prioritizing Care for Low-Income Patients.
This law changes how federal funds are distributed to states to support hospitals that treat a high volume of low-income patients (Medicaid and uninsured). Starting in 2026, funding allocation will be based on the state's poverty level, and hospitals must be categorized into priority tiers to ensure that the most critical safety-net facilities receive support first. The goal is to protect access to essential healthcare services for the poorest citizens.
Key points
Starting in 2026, the distribution of federal funds for hospitals serving the poor will be based on the state's poverty ratio, replacing previous allocation methods.
Implementation of a mandatory prioritization system (Tier 1 to Tier 4) directing the highest financial support to hospitals with the highest volume of Medicaid and low-income patients.
States gain flexibility to reserve a portion of annual funds for future years, aiming to provide greater financial stability for essential medical facilities.
Expired
Additional Information
Print number: 118_HR_990
Sponsor: Rep. Bilirakis, Gus M. [R-FL-12]
Process start date: 2023-02-14