S.474 - Fair Funding for Rural Hospitals Act (119th Congress)
Summary
S.474, the "Fair Funding for Rural Hospitals Act," aims to amend Title XIX of the Social Security Act. The bill seeks to establish a minimum Medicaid Disproportionate Share Hospital (DSH) allotment for states, particularly benefiting rural hospitals. It sets a minimum DSH allotment of $20,000,000 for fiscal years 2025-2029, and adjusts for inflation in subsequent years.
Expected Effects
If enacted, this bill would ensure that states receive a minimum level of Medicaid DSH funding, providing financial stability to rural hospitals. This could improve healthcare access in rural areas. The change would be implemented through amendments to existing sections of the Social Security Act.
Potential Benefits
- Financial Stability for Rural Hospitals: Guarantees a minimum level of Medicaid DSH funding.
- Improved Healthcare Access: Helps maintain healthcare services in rural communities.
- Reduced Hospital Closures: Prevents potential closures of rural hospitals due to funding shortfalls.
- Enhanced Healthcare Quality: Allows hospitals to invest in better equipment and staffing.
- Economic Boost for Rural Areas: Supports local economies by keeping hospitals operational.
Potential Disadvantages
- Increased Federal Spending: Requires additional government expenditure on Medicaid DSH allotments.
- Potential for Inefficiency: May allocate funds to states regardless of actual need or efficient use.
- Possible Reduced Funding Elsewhere: Could lead to decreased funding for other healthcare programs.
- Inflationary Impact: Inflation adjustments could further increase costs over time.
- Administrative Burden: Implementing and managing the minimum allotment may create additional administrative overhead.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause (Preamble). Congress has the power to tax and spend for the general welfare, and this bill allocates funds to support healthcare, which can be argued as promoting the general welfare. The bill operates within the scope of powers granted to Congress under Article I, Section 8, which includes the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States.
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).