H.R. 3222

119th CONGRESS 1st Session

To amend title XVIII of the Social Security Act to improve risk adjustment under Medicare Advantage, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES · May 6, 2025 · Sponsor: Mrs. Spartz

H.R. 3222

SEC. 1. Short title

This Act may be cited as the or the .

SEC. 2. Improving risk adjustment under Medicare Advantage

Section 1853(a)(3)(C)(iii) of the Social Security Act () is amended— 42 U.S.C. 1395w–23(a)(3)(C)(iii)
- by striking and inserting
  - Subject to subclause (II), such risk
- by adding at the end the following new subclauses:
  - For 2026 and each subsequent year, the Secretary shall use 2 years of diagnostic data (when available) under such risk adjustment methodology.

SEC. 3. Promoting Medicare site-neutral payments

(a) In general
- Section 1833(t)(21) of the Social Security Act () is amended— 42 U.S.C. 1395l(t)(21)
  - by redesignating subparagraph (E) as subparagraph (F); and
    - (E) Sunset of certain exceptions
      - The provisions of clauses (ii) and (iv) of subparagraph (B) shall not apply with respect to applicable items and services furnished on or after January 1, 2026.
  - by inserting after subparagraph (D) the following new subparagraphs:
(b) On-Campus outpatient departments
- Section 1833(t) of the Social Security Act is amended—
  - in paragraph (1)(B)—
    - in cause (iv), by striking and at the end;
    - in cause (v), by striking the period at the end and inserting ; and; and
      - (vi) does not include applicable items and services (as defined in subparagraph (A) of paragraph (23)); and
    - by inserting at the end the following new clause:
    - (23) Services furnished by an on-campus outpatient department of a provider
      - (A) Applicable items and services
        
        For purposes of paragraph (1)(B)(v) and this paragraph, the term applicable items and services means items and services other than items and services furnished by a dedicated emergency department (as defined in section 489.24(b) of title 42 of the Code of Federal Regulations).
      - (B) On-campus outpatient department of a provider
        
        (i) On-campus outpatient department of a provider—
        
        on the campus (as defined in such section 413.65(a)(2) of title 42, Code of Federal Regulations) of such provider; or
        
        within the distance (described in such definition of campus) from a remote location of a hospital facility (as defined in such section 413.65(a)(2) of title 42, Code of Federal Regulations).
        
        (ii) For purposes of paragraph (1)(B)(vi) and this paragraph with respect to applicable items and services, the term shall not include a department of a provider (as so defined) if the provider is: on-campus outpatient department of a provider
        
        A critical access hospital (as defined in section 1861(mm)(1)).
        
        A sole community hospital (as defined in section 1886(d)(5)(D)(iii)).
        
        A Medicare-dependent, small rural hospital (as defined in section 1886(d)(5)(G)(iv)).
        
        Any other hospital that is located in a rural area (as defined in section 1886(d)(2)(D)).
      - (C) Availability of payment under other payment systems
        
        With respect to items and services furnished in an on-campus provider-based department, payment under this section for such items and services shall be the amount determined under the fee schedule under section 1848 for such items and services furnished if furnished in a physician office setting.
  - by adding at the end the following new paragraph:

SEC. 4. Increasing Medicare access for rural communities by physician-owned hospitals

Section 1877(d) of the Social Security Act () is amended by striking paragraph (2) and inserting the following: 42 U.S.C. 1395nn(d)
- (2) Rural providers
  - In the case of designated health services furnished in a rural area (as defined in section 1886(d)(2)(D)) by an entity, if substantially all of the designated health services furnished by the entity are furnished to individuals residing in such a rural area.

SEC. 5. Making drugs more affordable for medicare patients

Section 340B(a)(5) of the Public Health Service Act () is amended— 42 U.S.C. 256b(a)(5)
- in subparagraph (C), by striking subparagraphs (A) or (B)and inserting subparagraph (A), (B), or (E);
- in subparagraph (D), by striking subparagraphs (A) or (B)and inserting subparagraph (A), (B), or (E); and
  - (E) Requirement to provide drug discounts to patients
    - (i) A covered entity shall ensure that each patient who receives a covered outpatient drug from such covered entity is provided such drug at a price that does not exceed the price at which the covered entity purchased the drug in accordance with paragraph (1), less any additional discounts or rebates received by the covered entity with respect to the drug.
    - (ii) The Secretary shall establish a mechanism—
    - ensure that covered entities comply with clause (i);
    - adjust reimbursement rates for covered entities for certain outpatient prescription drugs provided by hospitals to Medicare patients under section 1395l(t)(14)(A)(iii); and
    - report the total amount paid and the total amount received for covered outpatient drugs under this subsection.
    - (iii) The Secretary shall make the information reported under subclause (ii)(III) publicly available.
- by adding at the end the following:

SEC. 6. Improving quality of care at the skilled nursing facilities

Section 1888(e)(6) of the Social Security Act () is amended by inserting after . 42 U.S.C. 1395yy(e)(6)