H.R. 2580 would lift a moratorium in current law that prohibits existing long-term care hospitals (LTCHs) from increasing the number of beds in their facilities. The bill would also reduce the total amount of payments made to LTCHs by modifying the current payment system for patients with very high costs.
Over the 2016-2025 period, CBO estimates that lifting the moratorium would increase Medicare spending by $47 million and that modifying the payment system for high-cost outliers in LTCHs would reduce Medicare spending by $48 million; the net reduction in direct spending would total $1 million.
H.R. 2580 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal governments.