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U.S. House Advances Transparency Bill with Site-Neutral Payment Policy

Hospital community turns focus to Senate to address concerning provisions within proposal

December 12, 2023

House lawmakers advanced The Lower Costs, More Transparency Act by a 320–71 vote last evening.

The legislative package features a host of health care price transparency rules and would delay Medicaid cuts to hospitals, but it also includes harmful site-neutral payment policies that would negatively affect access to care. HAP, the American Hospital Association (AHA), and other advocacy groups have expressed concerns about the site-neutral payment provisions and will urge lawmakers to remove those proposals as the bill moves to the Senate.

The bill would:

  • Codify price transparency rules for hospitals, insurance companies, labs, and ambulatory surgery centers.
  • Implement site-neutral payment policies for Medicare part B drugs.
  • Delay Medicaid Disproportionate Share Hospital cuts through 2025.
  • Include payments to support community health centers and training programs.

“While the AHA appreciates inclusion of a two-year delay on DSH cuts, we have been very clear regarding the harm that would be done to our nation’s hospitals if so-called site-neutral cuts to Medicare were adopted,” AHA President and CEO Rick Pollack said in a statement.

As the legislation moves to the Senate, HAP will continue to emphasize the ways site-neutral payment policies threaten access to care. View our updated fact sheet, which highlights hospitals and their outpatient departments for delivering clinically complex care to vulnerable populations, while facing more requirements for that care than other settings.

HAP thanks members of Pennsylvania’s congressional delegation for their “no” votes on this bill, including Representatives Brendan Boyle (D-2), Dwight Evans (D-3), Madeleine Dean (D-4), Mary Gay Scanlon (D-5), and Scott Perry (R-10).

For more information, contact John Myers, vice president, federal advocacy.