[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3684 Introduced in House (IH)]

<DOC>






119th CONGRESS
  1st Session
                                H. R. 3684

To amend titles XVIII and XIX of the Social Security Act to provide for 
enhanced payments to rural health care providers under the Medicare and 
               Medicaid programs, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 3, 2025

  Mr. Graves (for himself and Ms. Budzinski) introduced the following 
  bill; which was referred to the Committee on Ways and Means, and in 
addition to the Committees on Energy and Commerce, and the Budget, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend titles XVIII and XIX of the Social Security Act to provide for 
enhanced payments to rural health care providers under the Medicare and 
               Medicaid programs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Save America's 
Rural Hospitals Act''.
    (b) Findings.--Congress finds the following:
            (1) More than 60,000,000 individuals in rural areas of the 
        United States rely on rural hospitals and other providers as 
        critical access points to health care.
            (2) Access to health care is essential to communities that 
        Americans living in rural areas call home.
            (3) Americans living in rural areas are older, poorer, and 
        sicker than Americans living in urban areas.
            (4) As of May 1, 2025, 151 rural hospitals have closed in 
        the United States, according to the University of North 
        Carolina's Cecil G. Sheps Center for Health Services Research, 
        and the rate of these closures is increasing.
            (5) Four hundred and thirty-two hospitals are operating at 
        margins similar to those that have closed over the past decade. 
        Of those, 216 are considered most vulnerable to closure.
            (6) Rural Medicare beneficiaries already face a number of 
        challenges when trying to access health care services close to 
        home, including the weather, geography, and cultural, social, 
        and language barriers.
            (7) Approximately sixty percent of all primary care health 
        professional shortage areas are located in rural areas.
            (8) Seniors living in rural areas are forced to travel 
        significant distances for care.
            (9) On average, trauma victims in rural areas must travel 
        twice as far as victims in urban areas to the closest hospital, 
        and, as a result, 60 percent of trauma deaths occur in rural 
        areas, even though only 20 percent of Americans live in rural 
        areas.
            (10) With the 432 hospitals on the brink of closure, 
        millions of Americans living in rural areas are on the brink of 
        losing access to the closest emergency room.
    (c) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
             TITLE I--RURAL PROVIDER PAYMENT STABILIZATION

                      Subtitle A--Rural Hospitals

Sec. 101. Eliminating Medicare sequestration for rural hospitals.
Sec. 102. Reversing cuts to reimbursement of bad debt for critical 
                            access hospitals (CAHs) and rural 
                            hospitals.
Sec. 103. Permanently extending payment levels for low-volume hospitals 
                            and Medicare-dependent hospitals (MDHs).
Sec. 104. Extending disproportionate share payments for sole community 
                            hospitals and medicare-dependent hospitals.
Sec. 105. Rebasing target amounts for Medicare-dependent hospitals and 
                            sole community hospitals.
Sec. 106. Implementing area wage index adjustments.
                   Subtitle B--Other Rural Providers

Sec. 111. Making permanent increased Medicare payments for ground 
                            ambulance services in rural areas.
Sec. 112. Permanently extending Medicare telehealth service 
                            enhancements for federally qualified health 
                            centers and rural health clinics.
Sec. 113. Restoring State authority to waive the 35-mile rule for 
                            certain Medicare critical access hospital 
                            designations.
              TITLE II--RURAL MEDICARE BENEFICIARY EQUITY

Sec. 201. Equalizing beneficiary copayments for services furnished by 
                            CAHs.
                      TITLE III--REGULATORY RELIEF

Sec. 301. Eliminating 96-hour requirements with respect to inpatient 
                            CAH services.
Sec. 302. Eliminating hospitalization requirement for extended care 
                            services furnished by certain hospitals.
                 TITLE IV--FUTURE OF RURAL HEALTH CARE

Sec. 401. Medicare rural hospital flexibility program grants.

             TITLE I--RURAL PROVIDER PAYMENT STABILIZATION

                      Subtitle A--Rural Hospitals

SEC. 101. ELIMINATING MEDICARE SEQUESTRATION FOR RURAL HOSPITALS.

    (a) In General.--Section 256(d)(7) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 906(d)(7)) is amended 
by adding at the end the following:
                    ``(D) Rural hospitals.--Payments under part A or 
                part B of title XVIII of the Social Security Act with 
                respect to items and services furnished by a critical 
                access hospital (as defined in section 1861(mm)(1) of 
                such Act), a sole community hospital (as defined in 
                section 1886(d)(5)(D)(iii) of such Act), a medicare-
                dependent, small rural hospital (as defined in section 
                1886(d)(5)(G)(iv) of such Act), or a subsection (d) 
                hospital (as defined in section 1886(d)(1)(B) of such 
                Act) located in a rural area (as defined in section 
                1886(d)(2)(D) of such Act).''.
    (b) Applicability.--The amendment made by this section applies with 
respect to orders of sequestration effective on or after the date that 
is 60 days after the date of the enactment of this Act.

SEC. 102. REVERSING CUTS TO REIMBURSEMENT OF BAD DEBT FOR CRITICAL 
              ACCESS HOSPITALS (CAHS) AND RURAL HOSPITALS.

    (a) Rural Hospitals.--Section 1861(v)(1)(T)(v) of the Social 
Security Act (42 U.S.C. 1395x(v)(1)(T)(v)) is amended by inserting 
before the period at the end the following: ``or, in the case of a 
hospital located in a rural area, by 15 percent of such amount 
otherwise allowable''.
    (b) CAHs.--Section 1861(v)(1)(W)(ii) of the Social Security Act (42 
U.S.C. 1395x(v)(1)(W)(ii)) is amended by inserting ``, a critical 
access hospital'' after ``or (V)''.
    (c) Applicability.--The amendments made by this section apply with 
respect to cost reporting periods beginning more than 60 days after the 
date of the enactment of this Act.

SEC. 103. PERMANENTLY EXTENDING PAYMENT LEVELS FOR LOW-VOLUME HOSPITALS 
              AND MEDICARE-DEPENDENT HOSPITALS (MDHS).

    (a) Extension of Increased Payments for MDHs.--
            (1) Extension of payment methodology.--Section 
        1886(d)(5)(G) of the Social Security Act (42 U.S.C. 
        1395ww(d)(5)(G)) is amended--
                    (A) in clause (i), by striking ``, and before 
                October 1, 2025''; and
                    (B) in clause (ii)(II), by striking ``, and before 
                October 1, 2025''.
            (2) Conforming amendments.--
                    (A) Extension of target amount.--Section 
                1886(b)(3)(D) of the Social Security Act (42 U.S.C. 
                1395ww(b)(3)(D)) is amended--
                            (i) in the matter preceding clause (i), by 
                        striking ``, and before October 1, 2025''; and
                            (ii) in clause (iv), by striking ``through 
                        fiscal year 2025'' and inserting ``or a 
                        subsequent fiscal year''.
                    (B) Extending the period during which hospitals can 
                decline reclassification as urban.--Section 13501(e)(2) 
                of the Omnibus Budget Reconciliation Act of 1993 (42 
                U.S.C. 1395ww note) is amended by striking ``through 
                fiscal year 2025'' and inserting ``, or a subsequent 
                fiscal year''.
    (b) Extension of Increased Payments for Low-Volume Hospitals.--
Section 1886(d)(12) of the Social Security Act (42 U.S.C. 
1395ww(d)(12)) is amended--
            (1) in subparagraph (B)--
                    (A) in the subparagraph heading, by inserting ``for 
                fiscal years 2005 through 2010'' after ``increase''; 
                and
                    (B) in the matter preceding clause (i), by striking 
                ``and for discharges occurring in fiscal year 2026 and 
                subsequent fiscal years'';
            (2) in subparagraph (C)(i)--
                    (A) in the matter preceding subclause (I), by 
                striking ``through 2025'' and inserting ``and each 
                subsequent fiscal year'';
                    (B) in subclause (II), by adding ``and'' at the 
                end;
                    (C) in subclause (III)--
                            (i) by striking ``fiscal years 2019 through 
                        2025'' and inserting ``fiscal year 2019 and 
                        each subsequent fiscal year''; and
                            (ii) by striking ``; and'' and inserting a 
                        period; and
                    (D) by striking subclause (IV); and
            (3) in subparagraph (D)--
                    (A) by amending the heading to read as follows: 
                ``Permanent applicable percentage increase'';
                    (B) in the matter preceding clause (i), by striking 
                ``in fiscal years 2011 through 2025'' and inserting 
                ``in fiscal year 2011 or a subsequent fiscal year''; 
                and
                    (C) in clause (ii), by striking ``each of fiscal 
                years 2019 through 2025'' and inserting ``fiscal year 
                2019 and each subsequent fiscal year''.

SEC. 104. EXTENDING DISPROPORTIONATE SHARE PAYMENTS FOR SOLE COMMUNITY 
              HOSPITALS AND MEDICARE-DEPENDENT HOSPITALS.

    Section 1886 of the Social Security Act (42 U.S.C. 1395ww) is 
amended--
            (1) in subsection (d)(5)(F)(i), by inserting ``, including, 
        with respect to discharges occurring in fiscal year 2026 and 
        each subsequent fiscal year, a subsection (d) hospitals that is 
        a sole community hospitals paid the amount described in 
        subparagraph (D)(i)(I) or a medicare-dependent, small rural 
        hospital paid the amount described in subparagraph (G),'' after 
        ``subsection (d) hospital''; and
            (2) in subsection (r)(2), by inserting ``(including, with 
        respect to fiscal year 2026 and each subsequent fiscal year, 
        subsection (d) hospitals that are sole community hospitals or 
        medicare-dependent, small rural hospitals described in 
        subsection (d)(5)(F)(i))'' after ``such subsection (d) 
        hospitals''.

SEC. 105. REBASING TARGET AMOUNTS FOR MEDICARE-DEPENDENT HOSPITALS AND 
              SOLE COMMUNITY HOSPITALS.

    Section 1886(b)(3) of the Social Security Act (42 U.S.C. 
1395ww(b)(3)) is amended--
            (1) in subparagraph (K)(i)--
                    (A) in subclause (I), by inserting ``(or, with 
                respect to discharges occurring on or after October 1, 
                2025, the 12-month cost reporting period beginning 
                during fiscal year 2024)'' after ``fiscal year 2002''; 
                and
                    (B) in subclause (II), by inserting ``(or, with 
                respect to discharges occurring on or after October 1, 
                2025, the first cost reporting period beginning on or 
                after such date)'' after ``October 1, 2006''; and
            (2) in subparagraph (L)(ii)--
                    (A) in subclause (I), by inserting ``(or, with 
                respect to discharges occurring on or after October 1, 
                2025, the 12-month cost reporting period beginning 
                during fiscal year 2024)'' after ``fiscal year 2006''; 
                and
                    (B) in subclause (II), by inserting ``(or, with 
                respect to discharges occurring on or after October 1, 
                2025, the first cost reporting period beginning on or 
                after such date)'' after ``January 1, 2009''.

SEC. 106. IMPLEMENTING AREA WAGE INDEX ADJUSTMENTS.

    (a) Codification of Low-Wage Index Hospital Policy.--Section 
1886(d)(3)(E) of the Social Security Act (42 U.S.C. 1395ww(d)(3)(E)) is 
amended by adding at the end the following new clause:
                    ``(v) Low-wage hospitals.--For discharges occurring 
                on or after October 1, 2025, the area wage index 
                applicable under this subparagraph for a fiscal year to 
                a hospital with an area wage index below the 25th 
                percentile area wage index shall be increased by \1/2\ 
                of the difference between the otherwise applicable 
                final area wage index for such fiscal year for such 
                hospital and the 25th percentile area wage index for 
                such fiscal year across all hospitals. Pursuant to the 
                fourth sentence of clause (i), the preceding sentence 
                shall be applied in a budget neutral manner.''.
    (b) Area Wage Adjustment for Hospitals Not Located in Frontier 
States.--
            (1) Hospital inpatient services.--Section 1886(d)(3)(E) of 
        the Social Security Act (42 U.S.C. 1395ww(d)(3)(E)), as amended 
        by subsection (a), is further amended by adding at the end the 
        following new clause:
                    ``(vi) Floor on area wage index for hospitals in 
                certain other areas.--
                            ``(I) In general.--For discharges occurring 
                        on or after October 1, 2025, the area wage 
                        index applicable under this subparagraph to any 
                        hospital which is not located in a frontier 
                        State (as defined in clause (iii)(II)) may not 
                        be less than 0.85.
                            ``(II) Ensuring budget neutrality.--In 
                        order to ensure that the aggregate payments 
                        made under this subsection for a fiscal year 
                        (beginning with fiscal year 2026) are not 
                        greater than the aggregate payments that would 
                        have been made under this subsection for such 
                        fiscal year without the application of 
                        subclause (I), as estimated by the Secretary, 
                        the Secretary shall establish pursuant to 
                        rulemaking a maximum area wage index to apply 
                        under this subparagraph to any hospital which 
                        is not located in a frontier State (as defined 
                        in clause (iii)(II)).
                            ``(III) No impact for hospitals with an 
                        area wage index between the floor and the 
                        maximum index.--Subclauses (I) and (II) shall 
                        have no effect on the area wage index 
                        applicable in a fiscal year to a hospital with 
                        an area wage index that is greater than the 
                        floor under subclause (I) but less than the 
                        maximum area wage index established under 
                        subclause (II) for the fiscal year.''.
            (2) Hospital outpatient department services.--Section 
        1833(t) of the Social Security Act (42 U.S.C. 1395l(t)), is 
        amended--
                    (A) in paragraph (2)(D), by striking ``paragraph 
                (19)'' and inserting ``paragraphs (19) and (23)''; and
                    (B) by adding at the end the following new 
                paragraph:
            ``(23) Floor on area wage adjustment factor for hospital 
        outpatient department services in areas other than in frontier 
        states.--
                    ``(A) In general.--With respect to covered OPD 
                services furnished on or after January 1, 2026, the 
                area wage adjustment factor applicable under the 
                payment system established under this subsection to any 
                hospital outpatient department which is not located in 
                a frontier State (as defined in section 
                1886(d)(3)(E)(iii)(II)) may not be less than 0.85.
                    ``(B) Ensuring budget neutrality.--In order to 
                ensure that the aggregate payments made under this 
                subsection for a year (beginning with 2026) are not 
                greater than the aggregate payments that would have 
                been made under this subsection for such year without 
                the application of subparagraph (A), as estimated by 
                the Secretary, the Secretary shall establish pursuant 
                to rulemaking a maximum area wage adjustment factor to 
                apply under the payment system established under this 
                subsection to any hospital outpatient department which 
                is not located in a frontier State (as defined in 
                clause (iii)(II)).
                    ``(C) No impact for hospitals with an area wage 
                adjustment factor between the floor and the maximum 
                factor.--Subparagraphs (A) and (B) shall have no effect 
                on the area wage adjustment factor applicable in a year 
                to a hospital with an area wage adjustment factor that 
                is greater than the floor under subparagraph (A) but 
                less than the maximum area wage adjustment factor 
                established under subparagraph (B) for the year.''.
    (c) Conforming Amendments.--Section 1886(d)(3)(E) of the Social 
Security Act (42 U.S.C. 1395ww(d)(3)(E)), as amended by subsections (a) 
and (b), is further amended--
            (1) in clause (i), by striking ``or (iv)'' and inserting 
        ``(iv), (v), or (vi)'';
            (2) in clause (iii), by adjusting the margins of such 
        clause 2 ems to the left; and
            (3) in clause (iv), by adjusting the margins of such clause 
        2 ems to the left.

                   Subtitle B--Other Rural Providers

SEC. 111. MAKING PERMANENT INCREASED MEDICARE PAYMENTS FOR GROUND 
              AMBULANCE SERVICES IN RURAL AREAS.

    Section 1834(l)(13) of the Social Security Act (42 U.S.C. 
1395m(l)(13)) is amended--
            (1) in the paragraph heading, by stri