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Medicare Payment Alignment: Lower Ambulatory Care Costs

This act aims to standardize Medicare payment rates for the same medical services provided in various outpatient settings, such as hospital outpatient departments or ambulatory surgical centers. This means that for the same procedures and tests, regardless of where they are performed, Medicare will pay the same amount, potentially leading to lower healthcare costs for citizens and the system.
Key points
Starting in 2027, Medicare will pay the same amount for selected medical services, regardless of whether they are provided in a hospital outpatient department, an ambulatory surgical center, or another outpatient setting.
The act aims to reduce healthcare costs by eliminating price differences for the same services in different locations.
Exceptions to the standardized payments include emergency department visits, critical care visits, and trauma care visits, which will be billed differently.
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Status:
Introduced
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Additional Information
Same Care, Lower Cost Act
Print number: S 1629
Sponsor: Sen. Kennedy, John [R-LA]
Process start date: 2025-05-06