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This bill would give certain rural hospitals in noncontiguous states a higher Medicare payment rate for some services starting in 2026. Right now, critical access hospitals are generally paid 101% of their costs for these services. Under this bill, critical access hospitals located in a noncontiguous state would be paid 105% instead for inpatient care, outpatient care, ambulance services, and some skilled nursing facility services. The goal is to help these hospitals better cover their costs and continue serving patients in remote areas.
- The higher payment rate would apply only to critical access hospitals in a noncontiguous state.
- The new 105% payment rate would begin for services furnished on or after January 1, 2026.
- The bill covers inpatient hospital services, outpatient hospital services, ambulance services, and certain skilled nursing facility services.
- The change would amend Medicare payment rules in the Social Security Act.
Official Summaries
Comprehensive Reimbursement Initiative Targeting Investment and Care in rural Locations or the CRITICAL Act
This bill increases the Medicare payment rate by 4% for services provided by critical access hospitals in Alaska and Hawaii.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 552 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 552
To amend title XVIII of the Social Security Act to provide for the
treatment of critical access hospital services furnished by a critical
access hospital located in a noncontiguous State.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 12, 2025
Mr. Sullivan (for himself and Mr. Schatz) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend title XVIII of the Social Security Act to provide for the
treatment of critical access hospital services furnished by a critical
access hospital located in a noncontiguous State.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Comprehensive Reimbursement
Initiative Targeting Investment and Care in rural Locations'' or the
``CRITICAL Act''.
SEC. 2. TREATMENT OF CRITICAL ACCESS HOSPITALS LOCATED IN A
NONCONTIGUOUS STATE.
(a) Inpatient Critical Access Hospital Services.--Section
1814(l)(1) of the Social Security Act (42 U.S.C. 1395f(l)(1)) is
amended by inserting ``(or, in the case of inpatient critical access
hospital services furnished on or after January 1, 2026, by a critical
access hospital that is located in a noncontiguous State, 105
percent)'' after ``101 percent''.
(b) Outpatient Critical Access Hospital Services.--Section
1834(g)(1) of the Social Security Act (42 U.S.C. 1395m(g)(1)) is
amended by inserting ``(or, in the case of outpatient critical access
hospital services furnished on or after January 1, 2026, by a critical
access hospital that is located in a noncontiguous State, 105
percent)'' after ``101 percent''.
(c) Ambulance Services.--Section 1834(l)(8) of the Social Security
Act (42 U.S.C. 1395m(l)(8)) is amended by inserting ``(or, in the case
of ambulance services furnished on or after January 1, 2026, by a
critical access hospital that is located in a noncontiguous State or by
an entity that is owned and operated by a critical access hospital that
is located in a noncontiguous State, 105 percent)'' after ``101
percent''.
(d) Skilled Nursing Facility Services.--Section 1883(a)(3) of the
Social Security Act (42 U.S.C. 1395tt(a)(3)) is amended by inserting
``(or, in the case of covered skilled nursing facility services
furnished on or after January 1, 2026, under an agreement under this
section by a critical access hospital that is located in a
noncontiguous State, 105 percent)'' after ``101 percent''.
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