SOLES Act

S 553, the SOLES Act, requires increased Medicare payments for sole community hospitals in Alaska and Hawaii. If a hospital's payment under Medicare's outpatient system is less than 94% of its reasonable costs, the payment must be raised to cover the shortfall. This directly affects the 11 sole community hospitals in these states that are the only providers of acute care in their communities. The bill mandates that these extra payments don't count toward budget neutrality rules or affect patient copayments, and requires the Secretary to issue implementing regulations within six months of enactment.