WASHINGTON — U.S. Sens. Mazie Hirono and Brian Schatz, both D-Hawaii, have co-introduced legislation seeking to raise the amount that hospitals in Hawaii and Alaska can be reimbursed by Medicare for outpatient care for enrolled seniors.

The measure was co-introduced with Alaska Sens. Dan Sullivan and Lisa Murkowski, both Republicans.

What You Need To Know

  • Rural states have historically faced significant cost disparities for Medicare reimbursement, which drive up costs for both hospitals and patients

  • Outpatient care includes a range of services, from emergency department visits to imaging services

  • The measure was co-introduced with Alaska Sens. Dan Sullivan and Lisa Murkowski, both Republicans

  • Sullivan said the Ensuring Outpatient Quality for Rural States Act addresses the limitations of current Medicare calculations

As the lawmakers pointed out, rural states have historically faced significant cost disparities for Medicare reimbursement, which drive up costs for both hospitals and patients.

“Hawaii’s unique geography and high cost of living makes accessing and providing health care more difficult, which is why hospitals in Hawaii have long received higher Medicare reimbursement for inpatient care than those in other states,” Hirono said. “This bill would similarly raise outpatient Medicare reimbursements in Hawaii, helping to ensure our hospitals – especially on neighbor islands – have the resources they need to provide outpatient care for our communities.”

Outpatient care includes a range of services, from emergency department visits to imaging services.

“To make sure hospitals in communities across Hawaii can continue to serve the seniors that rely on them, Medicare must recognize the real cost of providing health care in our state,” Schatz said. “Our bill will help boost reimbursements to providers in Hawaii and make sure seniors have access to the health care services they deserve.”

Sullivan said the Ensuring Outpatient Quality for Rural States Act addresses the limitations of current Medicare calculations.

“The federal government’s one-size-fits-all Medicare formulas are simply not working for rural states – a challenge that has saddled health care providers and senior citizens in Alaska with outrageous costs relative to other states,” he said. “Without flexibility in these formulas, hospitals across Alaska are struggling to maintain the level of care our seniors deserve. Our priority must be ensuring seniors on Medicare across the state can continue to access the inpatient and outpatient health services they rely on.”

Murkowski echoed the sentiment.

“Medicare formulas continue to fall short in addressing the challenges that rural states face. Alaska’s health care system relies on health care facilities to provide care in some of the most remote locations, contributing to increases in cost of care,” she said. “This legislation will offer greater flexibility for these Medicare formulas, so our facilities can provide critical care to our seniors and rural Alaskans. “Without flexibility in these formulas, hospitals across Alaska are struggling to maintain the level of care our seniors deserve. Our priority must be ensuring seniors on Medicare across the state can continue to access the inpatient and outpatient health services they rely on.”

Michael Tsai covers local and state politics for Spectrum News Hawaii. He can be reached at michael.tsai@charter.com.