Rural Hospital Frontier Fairness Act

#1323 | HR Congress #116

Last Action: Referred to the Subcommittee on Health. (2/26/2019)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "Rural Hospital Frontier Fairness Act" aims to amend two existing laws, the Social Security Act and the Public Health Service Act. The first amendment extends the minimum wage requirement for certain sole community hospitals, which are located within 75 miles of a frontier state, under the inpatient prospective payment system. The second amendment expands eligibility for discounted drug prices under the 340B drug pricing program to these same sole community hospitals. The effective date for these changes is set to take place 60 days after the enactment of the Act.

Possible Impacts


1. The Rural Hospital Frontier Fairness Act could affect people living in rural communities by extending the floor on the area wage index to certain sole community hospitals. This could potentially result in higher wages for employees at these hospitals, making it more attractive for healthcare professionals to work in these areas and improving the overall quality of healthcare in these communities.

2. The Act could also affect people living near sole community hospitals located within 75 miles of a frontier state by allowing them to receive discounted drug prices under the 340B drug pricing program. This could make healthcare more affordable for individuals and families who rely on these hospitals for their medical needs.

3. The Act may also impact the budgets of these sole community hospitals, as they may need to make changes to comply with the new requirements and elect to apply for certain provisions. This could potentially lead to changes in services and resources available to patients, affecting their access to healthcare.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1323 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 1323

To amend title XVIII of the Social Security Act to extend the floor on 
 the area wage index under the inpatient prospective payment system to 
certain sole community hospitals and to amend the Public Health Service 
  Act to provide eligibility for certain sole community hospitals to 
      discounted drug prices under the 340B drug pricing program.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 22, 2019

  Mr. Peterson (for himself and Mr. Tipton) introduced the following 
 bill; which was 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 consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To amend title XVIII of the Social Security Act to extend the floor on 
 the area wage index under the inpatient prospective payment system to 
certain sole community hospitals and to amend the Public Health Service 
  Act to provide eligibility for certain sole community hospitals to 
      discounted drug prices under the 340B drug pricing program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Hospital Frontier Fairness 
Act''.

SEC. 2. EXTENDING FLOOR ON AREA WAGE INDEX TO CERTAIN SOLE COMMUNITY 
              HOSPITALS.

    Section 1886(d)(3)(E)(iii) of the Social Security Act (42 U.S.C. 
1395ww(d)(3)(E)(iii)) is amended--
            (1) in subclause (I), by inserting before the period at the 
        end the following: ``and, for discharges occurring on or after 
        October 1, 2019, the area wage index applicable under this 
        subparagraph to any sole community hospital that is located not 
        more than 75 miles from the closest frontier State and that 
        makes an election under subclause (V) may not be less than 
        1.00''; and
            (2) by adding at the end the following new subclause:
                                    ``(V) Sole community hospital 
                                election.--The Secretary shall provide 
                                for a process under which a sole 
                                community hospital described in 
                                subclause (I) may elect, at such time 
                                and in such manner as specified by the 
                                Secretary, to apply subclause (I) to 
                                such sole community hospital.''.

SEC. 3. ELIGIBILITY OF CERTAIN SOLE COMMUNITY HOSPITALS FOR DISCOUNTED 
              DRUG PRICES UNDER THE 340B DRUG PRICING PROGRAM.

    (a) In General.--Section 340B(a)(4) of the Public Health Service 
Act (42 U.S.C. 256b(a)(4)) is amended by adding at the end the 
following new subparagraph:
                    ``(P) An entity that is a sole community hospital 
                (as defined in section 1886(d)(5)(C)(iii) of the Social 
                Security Act), that was classified as such a hospital 
                before October 1, 2015, and that is located not more 
                than 75 miles from the closest frontier State (as 
                defined in section 1886(d)(3)(E)(iii)(II) of such 
                Act).''.
    (b) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to drugs purchased on or after the first day of the first 
        month that begins more than 60 days after the date of the 
        enactment of this Act.
            (2) Conforming 340b agreements.--The Secretary of Health 
        and Human Services shall provide for such timely modification 
        of agreements entered into under section 340B of the Public 
        Health Service Act (42 U.S.C. 256b) as is necessary to provide 
        for the application of the amendment made by subsection (a) on 
        a timely basis consistent with paragraph (1).
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