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S 2524119th CongressIn Committee
Restoring Essential Healthcare Act
Introduced: Jul 29, 2025
Sponsor: Sen. Smith, Tina [D-MN] (D-Minnesota)
Healthcare
Standard Summary
Comprehensive overview in 1-2 paragraphs
Restoring Essential Healthcare Act (S. 2524) would repeal Section 71113 of Public Law 119-21, which previously prohibited Medicaid payments to certain entities. The bill also provides retroactive relief: for items or services that were furnished as Medicaid medical assistance by a “prohibited entity” during the period from the date Public Law 119-21 was enacted to the date this bill’s section becomes law, payments would be made as if the prohibition had never existed. In effect, the measure lifts the current prohibition going forward and also funds claims from the prohibited entities that occurred in the interim period.
Key Points
- 1Repeals Section 71113 of Public Law 119-21, ending the prohibition on Medicaid payments to certain entities.
- 2Provides retroactive payment restored to earlier period: for items/services furnished by a prohibited entity during the gap between Public Law 119-21’s enactment and this bill’s enactment, payments are to be made as if the prohibition had not existed.
- 3Applies to Medicaid items/services furnished as medical assistance under a State plan (or waivers) under Title XIX of the Social Security Act.
- 4The term “prohibited entity” is defined in the repealed statute; the bill does not redefine it in detail here.
- 5Potential fiscal impact: restoring payments and removing the prohibition could increase federal and state Medicaid outlays, depending on how many claims were affected during the gap period.
Impact Areas
Primary: Medicaid beneficiaries who received care from entities affected by the former prohibition, and the providers that bill Medicaid for those services.Secondary: States administering Medicaid programs, and the federal-state financing relationship under Title XIX.Additional impacts: Administrative and compliance considerations for Medicaid programs; potential budgetary and policy debates about funding for certain providers and future eligibility of payments.
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