S.Amdt. 4130

SA 4130, submitted by Ms. Klobuchar, aims to change how reasonable costs for nursing and allied health education programs are determined for hospitals. It seeks to add specific language to the Social Security Act to expand the types of direct and indirect costs the Secretary shall include as reasonable.

The amendment proposes to include costs that:

• Were directly incurred by the hospital.
• Were allocated to the hospital by a related entity that holds the necessary accreditation or state license.
• Were associated with training or advanced clinical training of a participant at the hospital or a related entity.
• Were associated with contracts for faculty employed by an educational institution that is not a related entity.
• Were associated with shared services, like payroll and administrative services, provided by a clinical site or educational institution that is a related entity.

The amendment also requires the Secretary of Health and Human Services to issue rules to carry out these changes within 120 days.

Additionally, the amendment prohibits the Secretary from recouping or reducing Medicare part A payments for these costs if they would be allowable under the new rules. It also requires the Secretary to refund any such payments that were recouped or reduced during the 6-year period ending on the date the section is enacted.