AISenate hearing on Indian Health Service purchased/referred care and land transfer bills

Public Lands and Energy MarkupsSenate Indian Affairs · 2026-02-04 · 119th Congress
The Senate Committee on Indian Affairs met to receive testimony on three bills: S.2098, authorizing conveyance of IHS-owned land in Anchorage to the Southcentral Foundation; S.1055, the Indian Health Service Emergency Claims Parity Act, extending the emergency notification window for purchased/referred care (PRC) claims from 72 hours to 15 days; and S.699, the PRC Improvement Act, addressing patient liability and reimbursement for PRC billing. Begins at 0:28:10
Transcript
Highlights

Title

Senate hearing on Indian Health Service purchased/referred care and land transfer bills

Purpose

The Senate Committee on Indian Affairs met to receive testimony on three bills: S.2098, authorizing conveyance of IHS-owned land in Anchorage to the Southcentral Foundation; S.1055, the Indian Health Service Emergency Claims Parity Act, extending the emergency notification window for purchased/referred care (PRC) claims from 72 hours to 15 days; and S.699, the PRC Improvement Act, addressing patient liability and reimbursement for PRC billing. Witnesses included IHS Deputy Director Darrell Laroche, Colville Business Council member Dayna Seymour, and Southcentral Foundation Vice President Leandra Ross, with members questioning delayed reimbursements, debt collection harm to patients, and land-ownership barriers to construction. Begins at0:28:10

Who spoke

Chair Lisa Murkowski (R-AK)0:28:10: Opened by outlining the three bills, emphasizing that Southcentral Foundation cannot build its clinic without owning the land0:28:45 and that the 72-hour PRC reporting deadline creates unfair burdens during medical emergencies0:29:46; later pressed witnesses on reimbursement timelines and provider access issues1:04:441:34:30.

Sen. Brian Schatz (D-HI), Vice Chair0:31:06: Argued the federal trust responsibility "is not and cannot be an aspiration"0:31:06, criticized HHS for incomplete, delayed responses to committee letters on IHS staffing and hiring freezes0:32:25, and noted IHS's civilian workforce is at a 10-year low0:33:25.

Sen. Mike Rounds (R-SD)0:34:43: Introduced his two bills, citing an estimated 32,000 PRC claims unpaid within required timeframes between October 2013 and June 20160:36:12, and explained his bill would require IHS approval of claims within 30 days and strengthen liability protections against wrongful debt collection0:37:11.

Darrell Laroche, IHS Deputy Director for Management Operations0:38:50: Testified IHS supports S.2098 despite preferring quitclaim over warranty deeds0:40:11, supports S.1055's 15-day window but wants flexibility to extend it administratively1:26:41, and acknowledged uncertainty about how patients can know PRC reimbursement amounts in advance1:04:21; later said IHS aims to hire over 3,000 staff next year but background checks take six to nine months1:23:32, and confirmed signage at Gallup Indian Medical Center still warns the hospital water is unsafe to drink1:21:32.

Dayna Seymour, Colville Business Council member0:44:10: Said IHS mismanagement of PRC at the Colville service unit could be traced to deaths in the community0:45:03, described a family member who died of a heart attack after a canceled specialist referral1:01:56, and said the Colville tribe discovered $42 million in unspent PRC carryover funds at the service unit0:46:24; testified patients have been turned away from cancer treatment and oxygen appointments over unpaid balances1:35:57, but said provider trust has improved since Colville assumed PRC administration under a 638 agreement1:37:54.

Leandra Ross, Southcentral Foundation VP of Executive and Tribal Services0:49:36: Said SCF serves 70,000 "customer owners" with 3,000 employees and over 850,000 annual encounters0:50:28, and that the land transfer is needed to build a 44,000-square-foot facility to replace outdated buildings — one clubhouse space is a former hospital morgue0:51:12; said SCF is at 35% design and ready to build this summer once ownership transfers0:53:000:56:08.

Sen. Maria Cantwell (D-WA)1:10:55: Said the Colville reservation has no full-service IHS hospital and a 60% vacancy rate at its IHS service unit, calling it "abdication of duty"1:12:04; pressed Laroche on why IHS cannot reimburse patients now without new legislation, saying "we have a broken system"1:17:261:17:56.

Sen. Ben Ray Luján (D-NM)1:18:57: Said IHS moved funding away from two New Mexico tribal health facility projects, including one serving the Navajo Nation, without explanation, and sought commitment to restore funds and consult tribes before future moves1:19:251:20:34; also raised the unsafe drinking water at Gallup Indian Medical Center1:21:32.

Sen. Catherine Cortez Masto (D-NV)1:25:08: Focused on S.1055, securing Laroche's confirmation that IHS supports the 15-day window but wants flexibility to extend it further1:26:41; noted seniors and people with disabilities already get 30 days and asked whether that standard should apply to everyone1:26:59; also described her newly introduced bill to elevate the IHS Director to an HHS assistant secretary position1:27:52.

Key moments

Rounds cited an estimated 32,000 PRC claims that went unpaid within required timeframes between October 2013 and June 20160:36:12.

Seymour testified the Colville service unit was sitting on $42 million in unspent PRC carryover funds discovered near the end of contract negotiations, money she said should have gone to patient care0:46:241:29:44.

Seymour described a family member's death from a heart attack after a specialist follow-up appointment was canceled, directly linking PRC mismanagement to deaths in the community1:01:56.

Cantwell pressed Laroche on why IHS cannot currently reimburse patients who pay out of pocket; Laroche cited Federal Acquisition Regulation constraints, and Cantwell responded "why haven't we done that yet"1:16:411:17:26.

Murkowski highlighted that patients have no way to know in advance what PRC will reimburse, calling it "the heartburn I've got with all of this"1:04:44.

Seymour testified patients — including cancer and oxygen patients — have been turned away from appointments over unpaid prior PRC balances, forcing some to pay out of pocket despite living in a high-poverty area1:35:171:35:571:36:36.

Luján revealed signage at Gallup Indian Medical Center still states hospital water is unsafe to drink, and that signs were altered after his prior inquiry1:21:321:22:00.

Laroche acknowledged six-to-nine-month background check delays have caused IHS to lose recruited providers in New Mexico despite a goal to hire over 3,000 staff next year1:23:321:24:45.

Seymour said Colville has seen providers who previously canceled contracts due to IHS nonpayment now returning since Colville began administering its own PRC program1:37:54.

Ross said the land transfer would let Southcentral Foundation double capacity at its clubhouse behavioral health program, where 80 of 114 current participants have achieved employment goals0:52:31.

Metadata

Official titleHearings to examine S.2098, to provide for the conveyance of certain property to the Southcentral Foundation located in Anchorage, Alaska, S.1055, to amend the Indian Health Care Improvement Act to modify the notification requirement for emergency contract health services for certain beneficiaries, and S.699, to amend the Indian Health Care Improvement Act to address liability for payment of charges or costs associated with the provision of purchased/referred care services.
CommitteeSenate Indian Affairs
Chamber / CongressSenate · 119th Congress
Date2026-02-04
TypeMeeting
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript206 caption blocks · 9,152 words · 1:41:46 runtime
EventCongress.gov 337951