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Adjusting Healthcare Payments for Alaska and Hawaii Outpatient Services

This bill aims to improve healthcare quality in Alaska and Hawaii by allowing hospitals to receive higher payments for outpatient medical services. This change permits the inclusion of higher cost-of-living adjustments when calculating payments, which is crucial for maintaining access to medical services. Citizens in these regions can expect hospitals to have greater financial capacity to provide adequate services.
Key points
Outpatient Payment Changes: Hospitals in Alaska and Hawaii will be eligible for higher payments for services provided to outpatients (e.g., hospital clinic visits).
Cost-of-Living Adjustment: New rules allow applying a cost-of-living adjustment to the non-labor related portion of payments, accounting for the unique, high operating costs in these states.
Budget Impact: These adjustments will not be applied in a budget-neutral manner, meaning the federal government will allocate additional funds to financially support hospitals in these regions.
Effective Date: The changes will apply to services furnished on or after January 1, 2025.
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Additional Information
Print number: 118_S_3691
Sponsor: Sen. Sullivan, Dan [R-AK]
Process start date: 2024-01-30