Ensuring Outpatient Quality for Rural States Act

The Ensuring Outpatient Quality for Rural States Act (S 551) adjusts Medicare payments for outpatient hospital services in Alaska and Hawaii to address their higher operating costs. Starting in 2026, it allows the government to modify the non-labor portion of payment rates (covering expenses like rent and equipment) for these states, similar to adjustments made elsewhere. The bill specifies these changes should not be budget neutral, meaning they won’t be offset by cuts to other Medicare payments. It directly affects Medicare-certified hospitals in Alaska and Hawaii providing outpatient care.