S. 872 – Rural Hospital Access Act of 2017

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Updated April 15, 2026 at 2:34 PM UTC

The Rural Hospital Access Act of 2017 changes the Social Security Act so that two Medicare payment programs for small and rural hospitals become permanent. It removes the temporary expiration dates for the Medicare‑dependent hospital (MDH) program and for the higher payment rates that low‑volume hospitals receive, ensuring those hospitals can continue to get the extra funding.

Key Provisions

Deletes the “and before October 1, 2017” language, making the MDH payment methodology and target amount extensions indefinite.
Allows hospitals to opt out of reclassification under the MDH program for any future fiscal year, not just through 2017.
Eliminates the time limits on the increased payment percentages for Medicare low‑volume hospitals, turning the temporary boost into a permanent rate beginning with fiscal year 2011 and continuing thereafter.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

April 6, 2017

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SenateIntro Referral

Introduced in Senate

April 6, 2017

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

April 6, 2017

Bill Text

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Introduced in SenateIssued April 6, 2017

II

115th CONGRESS

1st Session

S. 872

IN THE SENATE OF THE UNITED STATES

April 6 (legislative day, April 4), 2017

Mr. Grassley (for himself, Mr. Schumer, Ms. Stabenow, Mrs. Capito, Mrs. McCaskill, Ms. Baldwin, Mr. Leahy, Mr. Bennet, Mr. McCain, and Mr. Gardner) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend title XVIII of the Social Security Act to make permanent the extension of the Medicare-dependent hospital (MDH) program and the increased payments under the Medicare low-volume hospital program.

1.

Short title

This Act may be cited as the Rural Hospital Access Act of 2017.

2.

Extension of the Medicare-dependent hospital (MDH) program

(a)

Extension of payment methodology

Section 1886(d)(5)(G) of the Social Security Act (42 U.S.C. 1395ww(d)(5)(G)) is amended—

(1)

in clause (i), by striking , and before October 1, 2017; and

(2)

in clause (ii)(II), by striking , and before October 1, 2017.

(b)

Conforming amendments

(1)

Extension of target amount

Section 1886(b)(3)(D) of the Social Security Act (42 U.S.C. 1395ww(b)(3)(D)) is amended—

(A)

in the matter preceding clause (i), by striking , and before October 1, 2017; and

(B)

in clause (iv), by striking through fiscal year 2017 and inserting or a subsequent fiscal year.

(2)

Permitting hospitals to decline reclassification

Section 13501(e)(2) of the Omnibus Budget Reconciliation Act of 1993 (42 U.S.C. 1395ww note) is amended by striking fiscal year 2000 through fiscal year 2017 and inserting a subsequent fiscal year.

3.

Extension of the increased payments under the Medicare Low-Volume Hospital Program

Section 1886(d)(12) of the Social Security Act (42 U.S.C. 1395ww(d)(12)) is amended—

(1)

in subparagraph (B)—

(A)

in the heading, by inserting for fiscal years 2005 through 2010 after increase; and

(B)

in the matter preceding clause (i), by striking and for discharges occurring in fiscal year 2018 and subsequent fiscal years;

(2)

in subparagraph (C)(i)—

(A)

by striking fiscal years 2011 through 2017 each place it appears and inserting fiscal year 2011 and each subsequent year; and

(B)

by striking or portion of fiscal year; and

(3)

in subparagraph (D)—

(A)

in the heading, by striking Temporary applicable percentage increase and inserting Applicable percentage increase beginning with fiscal year 2011;

(B)

by striking fiscal years 2011 through 2017, and inserting fiscal year 2011 and each subsequent fiscal year; and

(C)

by striking or the portion of fiscal year each place it appears.