H.R. 8967

Rural Community Hospital Demonstration Program Reauthorization

Sponsor: Randy Feenstra

21 cosponsors
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Official summary

Written by the Congressional Research Service.

Rural Community Hospital Demonstration Program Reauthorization

This bill extends the Rural Community Hospital Demonstration Program for an additional five years. The program tests the feasibility of cost-based reimbursement under Medicare for small rural hospitals that are too large to qualify for special payment as critical access hospitals.

The bill specifies that hospitals that participate in the program between December 30, 2024, and January 1, 2027, may continue to participate during the five-year extension period.

Text of the bill

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Sec. 2. Five-year extension of the rural community hospital demonstration program

(a) In general. Subsection (a)(5) of section 410A of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (Public Law 108–173; 42 U.S.C. 1395ww note), is amended by striking 15-year extension period and inserting 20-year extension period.

(b) Conforming amendments for extension

(1) Extension of demonstration period. Subsection (g) of such section 410A is amended—

(A) in the subsection heading, by striking Fifteen-Year and inserting Twenty-Year;

(B) in paragraph (1)—

(i) by striking additional 15-year and inserting additional 20-year; and

(ii) by striking 15-year extension period and inserting 20-year extension period;

(C) in paragraph (2), by striking 15-year extension period and inserting 20-year extension period;

(D) in paragraph (3), by striking 15-year extension period and inserting 20-year extension period;

(E) in paragraph (4), by striking 15-year extension period each place it appears and inserting 20-year extension period;

(F) in paragraph (5), by striking 15-year extension period each place it appears and inserting 20-year extension period; and

(G) in subparagraph (A) of paragraph (6), by striking 15-year extension period and inserting 20-year extension period.

(2) Rule for hospitals that are not original participants in the demonstration. Paragraph (5) of subsection (g) of such section 410A is amended—

(A) in subparagraph (B), by striking Additional extension and inserting CAA, 2021 extension; and

(B) by adding at the end the following new subparagraph:

Text this section adds to the law

(C) Additional extension. During the fourth 5 years of the 20-year extension period, the Secretary shall apply the provisions of paragraph (4) to rural community hospitals that are not described in paragraph (4) but are participating in the demonstration program under this section at any time during the period beginning on December 30, 2024, and ending on January 1, 2027, in a similar manner as such provisions apply to rural community hospitals described in paragraph (4).