US SB553

Establishes a minimum payment floor of 94% of reasonable costs for sole community hospitals in Alaska and Hawaii under Medicare's hospital outpatient prospective payment system

Requires the Secretary of Health and Human Services to increase payments when current reimbursement falls below the 94% threshold, with the difference made up by additional federal payments

Specifies that additional payments will not affect patient copayment amounts and will not be implemented in a budget-neutral manner, meaning new federal spending rather than redistribution from other programs

Requires HHS to promulgate implementing regulations within 6 months of enactment, with the new payment rules taking effect the following January 1

Introduced February 12, 2025 by Senators Sullivan (R-AK), Schatz (D-HI), and Murkowski (R-AK) with bipartisan support from both non-contiguous states