Bill > S3688

This bill, also known as the Rural Underpayment Remedy through Adjusted Local Rate Act or RURAL Rate Act, aims to address disparities in Medicare payments by increasing the minimum values for certain geographic adjustment factors used in calculating payments to healthcare providers. Specifically, it amends Title XVIII of the Social Security Act, which governs Medicare. The bill focuses on the "practice expense" and "work geographic indices," which are used to adjust payments based on the cost of operating a practice and the geographic location of services, respectively. Currently, there's a provision that sets a minimum value for these indices for certain areas until January 1, 2026. This bill extends that provision and, importantly, mandates that for services provided on or after January 1, 2026, the Secretary of Health and Human Services must increase either the practice expense or work geographic index to at least 1.67 if it would otherwise fall below that level for services furnished in a specific state. This means that even if the calculated costs for practice expenses or physician work in certain areas are lower than 1.67 times the national average, the payment will be boosted to that level, effectively providing a higher payment floor for providers in those locations.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/3688/all-info