AFP Applauds House for Passing the Bipartisan Lower Costs, More Transparency Act

Dec 11, 2023 by AFP

Legislation chips away at unfair billing in Medicare by including site neutral payments for drug administration services at outpatient facilities.

Arlington, Va. – Today, AFP applauded the U.S. House of Representatives for passing H.R. 5378, the bipartisan Lower Costs, More Transparency Act.

Under the bill, Medicare would pay off-campus outpatient departments at the same rate as physician offices for drug administration services rather than the higher hospital rate. These rates will be phased in over four years starting in 2025 (2026 for rural facilities). The Congressional Budget Office estimates that these provisions would save about $3.7 billion over the next decade.

“Medicare’s reimbursement policies give hospital-owned providers and facilities an unfair edge over independent competitors, leading to higher costs and fewer choices for patients,” said Dean Clancy, senior health policy fellow at Americans for Prosperity. “By equalizing reimbursement payments for drug administration at all outpatient facilities, the Lower Costs, More Transparency Act is a good first step toward making Medicare reimbursements fairer and giving patients more affordable options.”

Background

Ending unfair billing in health care is part of AFP’s Personal Option initiative to help patients and families access more affordable options. Find out more at PersonalOption.com.

Recently, AFP launched a six-figure ad campaign urging Congress to end unfair billing in Medicare by enacting site neutral payments. Earlier this year, AFP ran digital ads promoting site neutral payment reforms in 56 congressional districts, led a coalition letter that more than 20 organizations and experts signed onto, and released a poll showing that close to 70% of Americans believe that independent doctors should be reimbursed the same amount that hospital-employed doctors get.

For media inquiries, please contact Geoff Holtzman; gholtzman@afphq.org

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