Save Our Safety-Net Hospitals Act of 2025
Summary
The Save Our Safety-Net Hospitals Act of 2025 aims to amend Title XIX of the Social Security Act, specifically targeting disproportionate share hospital (DSH) payment adjustments under Medicaid. The bill seeks to modify certain limitations on these payments to support hospitals that serve a large number of low-income patients. It allows states to utilize unspent DSH allotments from prior years and retroactively modify state plan amendments to increase payment adjustments.
Expected Effects
The act will likely increase funding to safety-net hospitals by modifying limitations on DSH payments. This could lead to better financial stability for these hospitals. States will have more flexibility in distributing DSH funds.
Potential Benefits
- Increased financial support for safety-net hospitals.
- Greater flexibility for states in managing DSH allotments.
- Potential for improved healthcare access for low-income individuals.
- Retroactive adjustments to state plans to maximize fund utilization.
- Reduced financial strain on hospitals serving vulnerable populations.
Potential Disadvantages
- Potential for increased federal spending on Medicaid.
- Possible administrative burden for states in modifying and reporting payment adjustments.
- Risk of inefficient allocation of funds if not properly managed by states.
- May not address underlying issues of healthcare access and affordability.
- Could create disparities between states in DSH payment adjustments.
Constitutional Alignment
The bill aligns with the General Welfare Clause of the Constitution (Preamble) by aiming to promote the health and well-being of vulnerable populations through supporting safety-net hospitals. Congress has the power to tax and spend for the general welfare, which includes healthcare. The specific mechanisms for adjusting Medicaid payments fall under Congress's authority to regulate programs established under the Social Security Act.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).