WA SB5923

Creates an exception to the 2005 moratorium on new critical access hospital payments, allowing hospitals located on an island within a public hospital district in Skagit county to qualify if certified by CMS on or after January 1, 2026

Critical access hospitals receive Medicaid payments based on allowable costs incurred during the year, rather than standard fee-for-service rates

Amends RCW 74.09.5225 to add this Skagit county island hospital exception alongside existing exceptions for the Washington rural health access preservation pilot program

Sponsors: Senators Muzzall and Lovelett; prefiled December 22, 2025 for the 2026 Regular Session