WASHINGTON, D.C. – U.S. Senator Peter Welch (D-Vt.) joined Senators John Barrasso (R-Wyo.), Brian Schatz (D-Hawaii), and Kevin Cramer (R-N.D.) this week in introducing the Fair Funding for Rural Hospitals Act, bipartisan legislation to ensure that hospitals caring for large numbers of Medicaid and uninsured patients in Vermont and other rural states receive their fair share of federal funding. The Senators’ bill would establish a nationwide federal funding minimum for disproportionate share hospitals (DSH) and create a federal floor of $20 million per state for the Medicaid DSH program. The program will then grow at a “low” DSH percentage inflation rate after the first five years. 

“Hospitals in rural communities like Vermont are seeing more and more Medicaid and low-income patients. These hospitals provide essential health care services, so it’s crucial they get the support they need,” said Senator Welch. “I am proud to join Senators Barrasso, Schatz, and Cramer to introduce this bipartisan legislation to provide stable funding for these hospitals to continue to do the important work of serving our most vulnerable patients.”  

“Wyoming’s hospitals serve more Medicaid and low-income patients than other states, but our share of funding hasn’t caught up for decades,” said Senator Barrasso. “We’ve been overlooked for our fair share while our rural hospitals fight to keep their doors open. This legislation will fix outdated funding issues for hospitals across Wyoming and rural America.” 

“By enabling states to increase payments to hospitals providing uncompensated care, our bill will help more uninsured and low-income people across Hawai‘i access the care they need,” said Senator Schatz. 

“I joined my colleagues in introducing the Fair Funding for Rural Hospitals Act to ensure hospitals receive appropriate support to care for Medicaid and uninsured patients,” said Cramer. “By establishing a new federal floor for rural states like North Dakota, this legislation will support access to care for our state’s most vulnerable patients.” 

Read the full text of the legislation.  

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