[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2610 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 2610

To amend title XVIII of the Social Security Act to address significant 
      under projection of MA local area growth due to wage index 
                           reclassification.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 2, 2025

Ms. Tenney (for herself, Mr. Langworthy, Mr. Tonko, Mr. Lawler, and Ms. 
  Stefanik) introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on Energy 
    and Commerce, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend title XVIII of the Social Security Act to address significant 
      under projection of MA local area growth due to wage index 
                           reclassification.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting Options for Seniors Act 
of 2025''.

SEC. 2. ADDRESSING SIGNIFICANT UNDER PROJECTION OF MA LOCAL AREA GROWTH 
              DUE TO WAGE INDEX RECLASSIFICATION.

    (a) Local Adjustment Method and Applicability.--Section 1853(c) of 
the Social Security Act (42 U.S.C. 1395w-23(c)) is amended--
            (1) in paragraph (1)--
                    (A) in the text preceding subparagraph (A), by 
                striking ``and (7)'' and inserting ``, (6)(D), and 
                (7)''; and
                    (B) in subparagraph (C)(v)(II), by inserting ``, 
                taking into account any adjustment under paragraph 
                (6)(D)'' before ``, but not''; and
            (2) in paragraph (6)--
                    (A) in the heading, by inserting ``; local growth 
                percentage adjustment'' after ``defined''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(D) Additional adjustment for significant under 
                projection of local area growth.--
                            ``(i) In general.--Beginning with rates 
                        calculated for 2026, for purposes of computing 
                        rates for an MA payment area and a year as 
                        described in paragraph (1), if such area is an 
                        applicable area described in clause (ii), the 
                        Secretary shall, with respect to such area, 
                        increase the national per capita MA growth 
                        percentage determined under this paragraph for 
                        such year by the number of percentage points 
                        specified in clause (iii)(I) for such area and 
                        year.
                            ``(ii) Applicable area.--For purposes of 
                        clause (i), an applicable area described in 
                        this clause is an MA local area with respect to 
                        which the weighted average hospital wage index 
                        in effect in such area for 2025 (or a 
                        subsequent year), as calculated under clause 
                        (iv), increased by more than 20 percent as 
                        compared to the weighted average hospital wage 
                        index in effect in such area during the 
                        preceding year (as so calculated).
                            ``(iii) Local growth percentage.--
                                    ``(I) In general.--For purposes of 
                                clause (i), with respect to an 
                                applicable area described in clause 
                                (ii) and a year, the number of 
                                percentage points specified in this 
                                clause is equal to the product of--
                                            ``(aa) the percentage 
                                        calculated under subclause (II) 
                                        for the area and year, and
                                            ``(bb) the weighting factor 
                                        calculated under subclause 
                                        (III) for the area and year.
                                    ``(II) Percentage.--For purposes of 
                                subclause (I), the percentage 
                                calculated under this subclause for an 
                                applicable area and a year is--
                                            ``(aa) for 2026, the 
                                        percentage by which the 
                                        weighted average hospital wage 
                                        index in effect in the 
                                        applicable area for such year, 
                                        as calculated under clause 
                                        (iv), increased as compared to 
                                        the weighted average hospital 
                                        wage index in effect in such 
                                        area for 2024 (as so 
                                        calculated); and
                                            ``(bb) for 2027 and each 
                                        subsequent year, the percentage 
                                        by which the weighted average 
                                        hospital wage index in effect 
                                        in the applicable area for such 
                                        year, as calculated under 
                                        clause (iv), increased as 
                                        compared to the weighted 
                                        average hospital wage index in 
                                        effect in such area during the 
                                        preceding year (as so 
                                        calculated).
                                    ``(III) Weighting factor.--For 
                                purposes of subclause (I), the 
                                weighting factor calculated under this 
                                subclause for an applicable area and a 
                                year is equal to--
                                            ``(aa) the total amount of 
                                        payments made under sections 
                                        1833(t) and 1886 to all area 
                                        hospitals in such area 
                                        (including disproportionate 
                                        share payments made under 
                                        section 1886(d)(5)(F)) that 
                                        were subject to adjustment for 
                                        wage or labor costs, divided by
                                            ``(bb) the total amount of 
                                        payments made under parts A and 
                                        B of this title attributable to 
                                        the payment of claims for items 
                                        and services furnished in such 
                                        area, excluding any such 
                                        payment attributable to a 
                                        payment and service delivery 
                                        model being tested under 
                                        section 1115A,
                                determined using payment information 
                                with respect to the most recent 
                                calendar year for which information was 
                                computed and published under subsection 
                                (b)(4), as of the date on which the 
                                advance notice under subsection (b)(2) 
                                is provided for the year.
                            ``(iv) Weighted average hospital wage 
                        index.--The weighted average hospital wage 
                        index in effect in an MA local area for a year 
                        is equal to the average area wage index 
                        applicable under section 1886(d)(3)(E) for all 
                        area hospitals for such area as of the date on 
                        which the advance notice under subsection 
                        (b)(2) is provided for the year, weighted by 
                        the total amount of payments made under parts A 
                        and B of this title to each such area hospital, 
                        determined using payment information with 
                        respect to the most recent calendar year for 
                        which information was computed and published 
                        under subsection (b)(4), as of such date.
                            ``(v) Area hospital defined.--In this 
                        subparagraph, the term `area hospital' means, 
                        with respect to an MA local area and a year, a 
                        hospital that is geographically located in such 
                        area at any point during such year (without 
                        regard to whether such hospital was 
                        reclassified to a new geographic area pursuant 
                        to section 1886(d)(8)(B), a decision of the 
                        Medicare Geographic Classification Review Board 
                        under section 1886(d)(10), or a decision of the 
                        Secretary).
                            ``(vi) Requirement of benchmark 
                        neutrality.--Any adjustment made under this 
                        subparagraph for an MA payment area and a year 
                        shall be made in a manner that ensures that the 
                        enrollment-weighted average applicable amount 
                        under subsection (k)(1)(B) for all MA payment 
                        areas and such year is not greater or less than 
                        what it would have been without such 
                        adjustment.''.
    (b) Adjusting the Benchmark Cap.--Section 1853(k)(1)(B)(i) of the 
Social Security Act (42 U.S.C. 1395w-23(k)(1)(B)(i)) is amended by 
inserting ``, taking into account any adjustment under subparagraph (D) 
of such subsection'' before ``, but not''.
    (c) Adjusting the Base Payment Amount.--Section 1853(n)(2)(E)(ii) 
of the Social Security Act (42 U.S.C. 1395w-23(n)(2)(E)(ii)) is 
amended--
            (1) in subclause (I), by inserting ``, taking into account 
        any adjustment under subparagraph (D) of such subsection'' 
        before ``, but not''; and
            (2) in subclause (II), by inserting ``or, in the case that 
        the area is an applicable area (as determined under subsection 
        (c)(6)(D)), the amount specified in subclause (I) or the amount 
        specified in subsection (c)(1)(D) for the area for the year, 
        whichever is greater'' before the period at the end.
    (d) Transparency and Data Sharing.--
            (1) In general.--Section 1853(b)(4) of the Social Security 
        Act (42 U.S.C. 1395w-23(b)(4)) is amended by adding at the end 
        the following new subparagraph:
                    ``(E) Total amount paid to each area hospital (as 
                defined in subsection (c)(6)(D)) for the year, computed 
                separately for part A and for part B.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply beginning with the computation and publication of 
        information for each MA payment area for 2026.
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