Promoting Medicare site-neutral payments

(a) Removing certain exceptions to the definition of an off-Campus outpatient department of a provider (1) In general Section 1833(t)(21)(B) of the Social Security Act (42 U.S.C. 1395l(t)(21)(B)) is amended to read as follows: (B) Off-campus outpatient department of a provider For purposes of paragraph (1)(B)(v) and this paragraph, the term off-campus outpatient department of a provider means a department of a provider (as defined in section 413.65(a)(2) of title 42 of the Code of Federal Regulations, as in effect as of the date of the enactment of the Bipartisan Budget Act of 2015) that is not located— (i) on the campus (as defined in such section 413.65(a)(2)) of such provider; or (ii) 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)).. (2) Effective date The amendment made by paragraph (1) shall apply with respect to items and services furnished on or after January 1, 2026. (3) Removing site-neutral exception for off-campus emergency departments Section 1833(t)(21)(A) of the Social Security Act (42 U.S.C. 1395l(t)(21)(A)) is amended by inserting before January 1, 2026 after furnished. (4) Clarifying Secretarial authority to promote site-neutral payments Section 1833(t)(2)(F) of the Social Security Act (42 U.S.C. 1395l(t)(2)(F)) is amended by adding at the end the following new sentence: Such method may include actions determined appropriate by the Secretary to promote site-neutral payment policies to reduce expenditures attributable to items and services furnished under this part, such as actions to prevent hospitals from billing for items and services furnished at an off-campus outpatient department of a provider as if such items and services were furnished at such hospital.. (b) Ensuring separate NPIs for off-Campus outpatient departments of a provider (1) In general Section 1173(b) of the Social Security Act (42 U.S.C. 1320d–2(b)) is amended by adding at the end the following new paragraph: (3) Ensuring separate NPIs for off-campus outpatient departments of a provider The standards specified under paragraph (1) shall ensure that, not later than January 1, 2026, each off-campus outpatient department of a provider (as defined in section 1833(t)(21)(B)) is assigned a separate unique health identifier from such provider.. (2) Treatment of certain departments as subparts of a hospital Not later than January 1, 2026, the Secretary of Health and Human Services shall revise sections 162.408 and 162.410 of title 45, Code of Federal Regulations, to ensure that each off-campus outpatient department of a provider (as defined in section 1833(t)(21)(B) of the Social Security Act (42 U.S.C. 1395l(t)(21)(B))) is treated as a subpart (as described in such sections) of such provider and assigned a unique health identifier pursuant to section 1173(b)(3) of such Act (as added by paragraph (1)).