Ensuring Outpatient Quality for Rural States Act

This bill proposes to amend Title XVIII of the Social Security Act to introduce a significant change for healthcare providers in Alaska and Hawaii. Specifically, it seeks to apply a cost-of-living adjustment (COLA) to the non-labor related portion of payment amounts for hospital outpatient department services furnished in these states. The proposed amendment grants the Secretary the authority to implement these adjustments for services provided on or after January 1, 2026. This mechanism mirrors the existing COLA application for inpatient services under section 1886(d)(5)(H) of the Social Security Act, recognizing the unique circumstances faced by hospitals in Alaska and Hawaii. Crucially, the bill specifies that these adjustments shall not be applied in a budget-neutral manner , aiming to provide additional financial support to these regions.