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S. 607, Rural Community Hospital Demonstration Extension Act of 2015 1 (July 17, 2015)

handle is hein.congrec/cbo2443 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE COST ESTIMATE July 17, 2015 S. 607 Rural Community Hospital Demonstration Extension Act of 2015 As ordered reported by the Senate Committee on Finance on June 24, 2015 SUMMARY S. 607 would extend the Rural Community Hospital (RCH) demonstration program for an additional five years, through the end of calendar year 2021. Under the demonstration program, Medicare pays certain hospitals in rural areas on the basis of the reasonable costs they incur instead of using the payment rates determined by Medicare's Acute Inpatient Prospective Payment System (IPPS). CBO estimates that enacting S. 607 would increase direct spending by $27 million in fiscal year 2016 but that this additional spending would be offset in future years. Therefore, the bill, on net, would have no significant effect on direct spending over the 2016-2025 period. Pay-as-you-go procedures apply because enacting the legislation would affect direct spending. Enacting the legislation would not affect revenues. S. 607 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). ESTIMATED COST TO THE FEDERAL GOVERNMENT The estimated budgetary effect of S. 607 is shown in the following table. The costs of this legislation fall within budget function 570 (Medicare). By Fiscal Year, in Millions of Dollars 2016- 2016- 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2020 2025 CHANGES IN DIRECT SPENDING Estimated Budget Authority 27 -23 -4 0 0 0 0 0 0 0 0 0 Estimated Outlays 27 -23 -4 0 0 0 0 0 0 0 0 0 ab

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