HRA Tracking New Legislation for Site Neutrality

On May 6, 2025, Senator John Kennedy (R-LA), a member of the Senate Budget Committee, introduced the Same Care, Lower Cost Act (S.1629).

The proposed bill aims to align Medicare fee-for-service payment rates across ambulatory settings starting in 2027.  The bill directs the Secretary of the Department of Health and Human Services (HHS) to identify not fewer than 66 ambulatory payment classifications (APCs) for site neutral payments that are furnished in a hospital outpatient department, an ambulatory surgical center, or other setting determined appropriate.

The Secretary would also be able to add other APCs to those identified, as determined clinically appropriate. APCs for emergency department visits, critical care visits, and trauma care visits in a hospital outpatient department will be reclassified as comprehensive APCs and all related items and services will be bundled into a single payment.  HRA is closely monitoring the bill and will continue to provide updates due to its potential to impact reimbursement for heart rhythm services.