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Friday, February 21, 2025

Legislation aims to boost Medicare reimbursement for rural hospitals

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Dan Sullivan, U.S. Senator from Alaska | https://www.sullivan.senate.gov/about/bio

Dan Sullivan, U.S. Senator from Alaska | https://www.sullivan.senate.gov/about/bio

U.S. Senators Dan Sullivan and Lisa Murkowski from Alaska, along with Senator Brian Schatz from Hawaii, have introduced two legislative measures aimed at increasing Medicare reimbursement for rural hospitals in their respective states. The Save Our Lone Emergency Services (SOLES) Act and the Ensuring Outpatient Quality for Rural States Act are designed to address the cost disparities that rural and noncontiguous states face regarding Medicare reimbursements.

These bills aim to acknowledge the unique cost-of-living challenges faced by rural hospitals and propose increased reimbursement for critical access and sole community hospitals serving Medicare-enrolled seniors in areas lacking other emergency or healthcare services.

The introduction of this legislation follows a letter sent by Senators Sullivan and Murkowski to the Department of Health and Human Services, seeking more flexibility in reimbursement rates for Medicare inpatient procedures specific to Alaska and Hawaii.

Senator Sullivan emphasized the inadequacy of current Medicare formulas for rural states like Alaska and Hawaii. "Providing high-quality health care in rural areas simply costs more relative to other states," he said, highlighting the need for federal recognition of these challenges to ensure continued access to essential health services for seniors on Medicare.

Senator Murkowski echoed these sentiments, noting that "Medicare formulas continue to fall short in addressing the challenges that rural states face." She pointed out that Alaska's remote healthcare facilities contribute significantly to increased costs of care.

Senator Schatz also stressed the importance of recognizing real healthcare costs in Hawaii. "Our bills will help boost reimbursements to providers in Hawai‘i," he stated, ensuring seniors maintain access to necessary healthcare services.

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