Schatz introduces bipartisan bill to boost federal funding for rural hospitals in Hawaiʻi

US Sen. Brian Schatz (D-Hawai‘i) introduced bipartisan legislation to ensure that hospitals in Hawai‘i caring for large numbers of Medicaid and uninsured patients receive their fair share of federal funding.

The Fair Funding for Rural Hospitals Act would establish a national federal funding minimum for disproportionate share hospitals. Bill supporters say current payment levels are based on an outdated formula. The bill is co-sponsored by US Sens. John Barrasso (R-Wyo.), Kevin Cramer (R-N.D.), and Peter Welch (D-Vt.).

“Helping cover more costs for local hospitals will mean more uninsured and low-income people across Hawai‘i will have access to the care they need,” said Schatz, a senior member of the Senate Appropriations Committee. “We’ll keep working to make sure hospitals have the federal funding and resources they need to continue serving every part of Hawai‘i.”

The Fair Funding for Rural Hospitals Act establishes a federal minimum of $20 million per state for the Medicaid DSH program, growing by inflation in subsequent years and resulting in millions of new federal dollars to Hawai‘i and other “low DSH” states.

In addition to Hawai‘i, states that would see increases in funding under the bill include Delaware, Montana, North Dakota, South Dakota, and Wyoming.

The full text of the bill is available here.