Center for Advancing Health Policy through Research

Another news article speaks on a study published in Health Affairs that reveals a sharp rise in urban hospitals reclassifying themselves as "rural" under Medicare rules, allowing them to access financial benefits intended for rural health providers. Researchers warn that this loophole could redirect billions in federal funds away from genuinely rural hospitals and urge policymakers to take corrective action.

Hundreds of large, urban hospitals have taken advantage of a 2016 policy change to classify themselves as both urban and rural, allowing them to access financial benefits meant for rural hospitals. Researchers warn that this loophole could divert billions in taxpayer funds away from actual rural communities and into already well-funded urban hospitals unless policymakers intervene.

The article discusses the looming expiration of pandemic-era Medicare telehealth expansions and the ongoing policy debate over their extension, including new research by Ateev Mehrotra and Jared Perkins who suggest that lowering reimbursement rates for telehealth could make its permanent expansion more financially and politically viable.

Congress recently extended Medicare’s telehealth flexibilities until March 31, 2025, but the lack of permanent reform creates uncertainty for providers and patients. A long-term solution is needed to sustain telehealth’s benefits, ensure continued access, and drive innovation in health care.

Jared Perkins, Director of Health Policy Strategy at CAHPR discusses bridging the gap between academia and policymakers, the challenges of navigating health policy under a shifting political climate, and the importance of aligning research with legislative priorities.

The article written by CAHPR researchers, emphasizes the opportunity for Congress, in its final weeks of the 118th session, to advance healthcare affordability and transparency through the Lower Costs, More Transparency Act (LCMT) and the Health Care PRICE Transparency Act 2.0