S. 1629: Same Care, Lower Cost Act
This bill, known as the Same Care, Lower Cost Act, aims to change how Medicare pays for certain medical services provided in different outpatient facilities, such as hospital outpatient departments and ambulatory surgical centers. The primary focus is to create a more uniform payment system for similar services across various ambulatory settings. Here’s a summary of the key points:
Aligning Medicare Payments
The bill proposes amendments to Section 1834 of the Social Security Act. It introduces a concept called "site neutral payments." This means that for specific medical services provided in various outpatient settings starting in 2027, Medicare will pay the same amount regardless of where the service is delivered, as long as the services meet certain criteria.
Identification of Services
- The Secretary of Health and Human Services will need to determine at least 66 different categories of services that fall under these site neutral payments.
- These categories will include services that can be offered in places like ambulatory surgical centers, hospital outpatient departments, or any other facility deemed appropriate.
- The Secretary may add more services to this list as deemed clinically suitable.
Exceptions
There will be some exceptions to the site neutral payments. For example, comprehensive payments will be used for emergency department visits, critical care visits, and trauma care visits in hospital outpatient departments. In these cases, the payment will cover all related services as a single unit, rather than paying separately for each item or service provided.
Considerations for Service Identification
When identifying which services will receive site neutral payments, the Secretary must consider recommendations from the Medicare Payment Advisory Commission, specifically those related to aligning payment rates across various outpatient settings.
Conforming Amendments
- The payment system for ambulatory surgical center services.
- The hospital outpatient department (HOPD) fee schedule.
- The physician fee schedule, which will also require adjustments in accordance with the new payment guidelines.
Purpose of the Bill
The overarching goal of this legislation is to streamline and reduce discrepancies in how Medicare funds outpatient care, potentially leading to more efficient use of resources and a lower overall cost for Medicare services.
Relevant Companies
- HCA Healthcare (HCA) - As a prominent operator of hospital outpatient departments and ambulatory surgical centers, HCA may experience changes in revenue due to the proposed adjustments in payment structures.
- Tenet Healthcare (THC) - This company operates various healthcare facilities and could be directly impacted by the shift towards site neutral payments, possibly affecting its operational income.
- Universal Health Services (UHS) - Another major provider in the healthcare sector that may see financial implications from changes to Medicare payment structures.
This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
1 sponsor
Actions
2 actions
Date | Action |
---|---|
May. 06, 2025 | Introduced in Senate |
May. 06, 2025 | Read twice and referred to the Committee on Finance. |
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