Smith, LaHood unveil bill to fairly compensate rural Medicare providers

U.S. Reps. Adrian Smith (R-NE) and Darin LaHood (R-IL) proposed new legislation this month that aims to ensure senior citizens living in rural America have access to healthcare providers.

Currently, Medicare adjusts payments to providers based on estimates of the geographic practice cost index (GPCI). However, the index consistently underestimates the costs associated with practicing medicine in rural communities, according to a bill summary provided by the lawmakers, meaning rural providers receive lower, less competitive payments than providers practicing in urban areas.

On Nov. 8, Rep. Smith sponsored the Keep Physicians Serving Patients Act, H.R. 6313, with three original cosponsors, including Rep. LaHood and U.S. Rep. Terri Sewell (D-AL), to set a permanent minimum GCPI to ensure all providers are adequately and fairly compensated for their services, the summary says. 

“The last thing rural communities need is to lose healthcare providers to an outdated, flawed reimbursement index,” said Rep. Smith. “Modernizing the GPCI is a common-sense step we can take to ensure Medicare patients in rural America have access to care while also setting a reasonable, responsible reimbursement minimum for rural providers.”

The legislation would adjust the GPCI to more accurately portray the costs of practicing medicine in rural areas, states the bill summary.

“Ensuring Medicare providers in rural communities are not unfairly impacted from lower payments based on an outdated GPCI is critical for access to care in Illinois,” Rep. LaHood said. “I am proud to join this bipartisan group to introduce this common-sense bill, which will modernize the GPCI formula, accounting for the unique practice needs of rural providers, and ensure physicians can continue serving patients in need regardless of where they live.”

Rep. Sewell said that rural healthcare providers come under immense strain, due in part to Medicare reimbursement rates that fail to fully reflect the cost of providing services in smaller, rural communities.

“By modernizing the GPCI, this legislation would help ensure that providers are fairly reimbursed so that our healthcare professionals can focus on treating patients and saving lives,” said the congresswoman.