Bill lets small rural hospitals bill Medicare differently for anesthesia

What does this do?

The bill lets small rural hospitals and critical access hospitals bill Medicare for anesthesiologist services under Part A, using reasonable cost reimbursement, instead of the anesthesiologist billing separately under Part B. To qualify, a hospital must have had no more than one full-time anesthesiologist as of enactment, 800 or fewer anesthesia surgical procedures in 2026 (or a higher number set by Medicare officials), and the anesthesiologist must agree not to bill Part B separately. Hospitals must keep meeting the volume limit each year to continue qualifying.

Who does it affect?

This affects small, low-volume rural hospitals and critical access hospitals, along with the anesthesiologists they employ or contract with. Patients in these rural communities who need procedures requiring anesthesia are also affected.

Why does it matter?

The change shifts Medicare's payment method for these services from physician billing to hospital cost reporting, which supporters argue makes it easier for such hospitals to retain anesthesia services and preserve surgical and emergency care access.

Where does it stand?