Long Term Care Stabilization Act

This bill temporarily caps Medicare payments for high-cost long-term care hospital patients, limiting fixed loss amounts to $50,000 for fiscal years 2025 and 2026. It also creates a temporary exception (2025-2027) allowing standard Medicare payments for patients with severe wounds (like stage 3/4 wounds, infections, or osteomyelitis) instead of site-neutral rates. The bill requires two studies: one on reforming high-cost outlier payment methodology and another analyzing whether the severe wound payment exception should become permanent. These changes directly affect long-term care hospitals treating Medicare beneficiaries with high resource needs or severe wounds. The studies will inform future policy decisions but do not alter current payment rules beyond the specified temporary periods.