- Targeted stakeholdersMedicare Advantage payments likely better reflect beneficiaries' recent diagnoses, reducing upcoding incentives.
- Targeted stakeholdersSite‑neutral payments could lower Medicare spending by reducing higher hospital outpatient payments.
- Targeted stakeholdersRequiring 340B patient price limits may directly lower out‑of‑pocket drug costs for affected Medicare patients.
SMART Health Care Act
Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for c…
The bill makes several Medicare and health policy changes: (1) requires Medicare Advantage risk adjustment to use two years of diagnostic data beginning 2026; (2) extends site-neutral payment rules so many on-campus outpatient department services are paid under the physician fee schedule instead of hospital outpatient payments, with rural-hospital exceptions, effective January 1, 2026; (3) creates a rural-provider exception that eases limits on physician-owned hospitals furnishing designated health services in rural areas; (4) amends 340B to require covered entities to provide outpatient drugs to patients at no more than the entity’s acquisition price (minus discounts/rebates), and directs the Secretary to implement compliance, reimbursement adjustments, and public reporting; and (5) adjusts a skilled nursing facility quality payment percentage by inserting a 2 percentage point change (text is brief and partially ambiguous).
Technically specific but politically fraught package affecting insurers, hospitals, and pharma; likely to meet strong industry resistance and need for compromise.
Relative to its intended legislative type, this bill provides a collection of concrete statutory amendments that effectuate substantive changes to Medicare payment and related programs, with moderate specificity in legal text but notable gaps in fiscal acknowledgement, implementation sequencing, enforcement detail, and mitigation of potential edge cases.
Progressive worries physician-owned hospital expansion; conservatives support rural access exceptions.
Who stands to gain, and who may push back.
- Targeted stakeholdersHospitals may lose outpatient revenue, risking staffing cuts or service reductions at affected departments.
- Targeted stakeholdersShifting to physician fee schedule payments could incentivize relocation of services or disrupt hospital‑based care mod…
- Targeted stakeholdersCompliance, reporting, and reimbursement changes will increase administrative burden for providers and CMS.
Why the argument around this bill splits.
Progressive worries physician-owned hospital expansion; conservatives support rural access exceptions.
Generally supportive of measures that curb overpayments and lower patient drug costs, but concerned about provisions that could expand physician-owned hospitals and weaken safety-net hospital revenue.
Sees transparency and 340B patient pass-through as positive; worries site-neutral payment changes and rural exceptions might shift costs or reduce care at community hospitals.
Some impacts are uncertain and depend on regulatory detail.
Views bill as a mix of fiscal controls and access measures that could reduce waste and improve rural access.
Sees site-neutral payments and two-year risk data as reasonable cost-control steps, while 340B patient pricing and reporting improve accountability.
Wants clear implementation rules and monitoring to avoid unintended access losses.
Likely to favor the bill’s measures to reduce perceived Medicare overpayments, enforce site-neutral payments, and expand rural provider options.
Supports stronger oversight of drug pricing passthrough but may object to added federal reporting complexity.
Sees the physician-owned rural exception as restoring local choice and competition.
The path through Congress.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Technically specific but politically fraught package affecting insurers, hospitals, and pharma; likely to meet strong industry resistance and need for compromise.
- No cost estimate or CBO score included
- Ambiguity in the skilled nursing payment language
Recent votes on the bill.
No vote history yet
The bill has not accumulated any surfaced votes yet.
Go deeper than the headline read.
Progressive worries physician-owned hospital expansion; conservatives support rural access exceptions.
Technically specific but politically fraught package affecting insurers, hospitals, and pharma; likely to meet strong industry resistance a…
Relative to its intended legislative type, this bill provides a collection of concrete statutory amendments that effectuate substantive changes to Medicare payment and related programs, with moderate specificity in lega…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.