Purchased and Referred Care Improvement Act of 2025

S. 699 would amend the Indian Health Care Improvement Act to improve how the Indian Health Service (IHS) handles payment for purchased and referred care services. Purchased and referred care occurs when the IHS refers American Indian and Alaska Native patients to private healthcare providers because services are not available directly through the IHS.

The bill would establish that patients are not financially liable for costs associated with these authorized healthcare services, regardless of any agreements they may have signed. The IHS would be required to notify patients and healthcare providers of this non-liability status within 5 business days of receiving a claim. Additionally, the bill would create a reimbursement process allowing patients who paid out-of-pocket for authorized services to seek reimbursement within 30 days of submitting documentation.

Currently under consideration by the Senate Committee on Indian Affairs, the bill would require the Department of Health and Human Services to establish these procedures within 120 days of enactment and update relevant policies and contracts accordingly. If enacted, the bill would protect American Indian and Alaska Native patients from unexpected medical debt and provide faster reimbursement for out-of-pocket healthcare expenses.