Key Takeaways
- •Dayna Seymour revealed the Colville Service Unit had $42 million in unspent Purchased and Referred Care (PRC) funds, despite patients facing debt and care denials, even leading to deaths.
- •Dayna Seymour testified that IHS mismanagement of the PRC program led to patient deaths and widespread medical debt, prompting the Colville Tribe to assume all IHS functions.
- •Senator Murkowski (R-AK) pressed Darrell LaRoche on how patients can be "cautious" about PRC rates when they don't know the amount, highlighting patient confusion and burden.
- •Republican and Democratic senators expressed bipartisan frustration with IHS's lack of transparency and accountability regarding healthcare delivery and PRC program mismanagement.
- •The committee plans to advance the discussed legislative initiatives, including S.2098, S.1055, and S.699, and work with IHS to address systemic deficiencies in tribal healthcare.
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Hearing Analysis
Overview
On February 4, 2026, the Senate Committee on Indian Affairs held a legislative hearing to consider three bills aimed at improving healthcare infrastructure and delivery for Native communities: S. 2098, S. 1055, and S. 699. Chaired by Sen. Lisa Murkowski (R-AK), the hearing focused on the transfer of federal land to an Alaska Native health organization and significant reforms to the Indian Health Service (IHS) Purchased and Referred Care (PRC) program, which has faced criticism for administrative failures that leave tribal members with substantial medical debt.
Key Testimony
The first bill discussed, S. 2098, the Southcentral Foundation Land Transfer Act of 2025, was introduced by Sen. Murkowski and Sen. Dan Sullivan (R-AK). The legislation would transfer 3.4 acres of federal land in Anchorage to the Southcentral Foundation (SCF), a tribal health organization. Leanndra Ross, Vice President of Executive and Tribal Services at SCF, testified that the land is currently home to the Quyana Clubhouse, a behavioral health facility serving adults with serious mental illness. Ross noted that the current facilities are dilapidated—one room was formerly a hospital morgue—and that SCF is ready to begin construction on a new 44,000-square-foot facility once they secure land ownership. Darrell LaRoche, Deputy Director for Management Operations at IHS, expressed the department's support for the transfer's purpose but noted a technical preference for a "quitclaim deed" rather than the "warranty deed" mandated by the bill, citing potential administrative concerns. However, Sen. Murkowski pointed out that similar transfers in 2022 were executed without difficulty.
Overview
The hearing then shifted to two bills introduced by Sen. Mike Rounds (R-SD) regarding the PRC program, which allows IHS to purchase care from private providers when services are unavailable at IHS facilities. S. 1055, the Indian Health Service Emergency Claims Parity Act, proposes extending the window for tribal members to notify IHS of emergency care from 72 hours to 15 days. Sen. Rounds argued that the current 72-hour window is one of the shortest in the world and unfairly penalizes patients during medical crises. S. 699, the Purchased and Referred Care Improvement Act of 2025, co-sponsored by Sen. Maria Cantwell (D-WA), seeks to protect patients from medical debt by strengthening liability protections and requiring IHS to reimburse patients who pay out-of-pocket for authorized care within 30 days.
Key Testimony
Dayna Seymour, Health and Human Services Chair for the Colville Business Council of the Confederated Tribes of the Colville Reservation, provided compelling testimony on the real-world failures of the PRC system. She detailed how mismanagement at the IHS Portland Area Office led to tribal members being sent to debt collectors and, in some cases, avoiding life-saving care out of fear of financial ruin. Seymour revealed that the Colville Service Unit had $42 million in carryover PRC funds that went unspent while tribal members suffered. She noted that the Colville Tribes recently assumed all IHS functions under a self-governance contract to escape these administrative hurdles, leading to immediate improvements in provider relations and payment timelines.
Overview
The hearing featured a sharp critique of the Department of Health and Human Services (HHS) from Vice Chairman Brian Schatz (D-HI). Sen. Schatz expressed frustration with the agency’s lack of transparency regarding staffing levels, which he noted are at a 10-year low, and the impact of hiring freezes. He criticized HHS Secretary Xavier Becerra (referred to in the transcript as Secretary Kennedy) for failing to provide "plain English" explanations for reorganization plans and for not adequately consulting tribes. Sen. Ben Ray Lujan (D-NM) echoed these concerns, questioning Mr. LaRoche about a six-to-nine-month backlog for background checks that causes the IHS to lose qualified medical recruits to other employers. Sen. Lujan also raised an urgent safety issue regarding the Gallup Indian Medical Center, where signs currently advise that the water is unsafe for human consumption.
Notable exchanges occurred between Sen. Cantwell and Mr. LaRoche regarding the legal barriers to reimbursing tribal members. Mr. LaRoche suggested that Federal Acquisition Regulations (FAR) make direct reimbursement to patients cumbersome because the system is designed for payments to providers. Sen. Cantwell pushed back, demanding to know why these administrative hurdles have not been resolved given the harm caused to tribal members' credit scores. Additionally, Ms. Seymour clarified that the 72-hour reporting window is particularly burdensome in rural areas where families are focused on survival during the first days of a critical illness or accident.
Policy Proposals
The policy changes discussed would primarily impact the Indian Health Service, private healthcare providers serving tribal populations, and debt collection agencies. Organizations mentioned during the proceedings included the Southcentral Foundation, the Confederated Tribes of the Colville Reservation, the Navajo Nation, the Santa Ana Pueblo, and the Tanana Tribal Council.
Key Testimony
In closing, Sen. Murkowski emphasized that while self-determination through 638 contracts and self-governance compacts offers a path forward, the federal government must still address the "punitive" nature of the current IHS-managed PRC system. The committee will accept additional testimony and questions for the record for two weeks following the hearing. No specific date for a markup was set, though Sen. Rounds requested his colleagues' support to move the PRC reforms forward expeditiously.
Transcript
Good afternoon, the committee will come to order. We're here to receive testimony today on three bills that will improve healthcare delivery across native communities. First bill I want to highlight is S. 2098, this is a land transfer bill that I introduced with Senator Sullivan. It would transfer approximately 3.4 acres of federal land in Anchorage for the IHS to the Southcentral Foundation. This is an Alaska Native tribal health organization that already provides healthcare to IHS beneficiaries under a self-governance compact. On this site, SCF operates the Quyana Clubhouse, which serves adults over 21 with serious mental health needs through culturally grounded behavioral health services. SCF is ready to expand the facility and offer more intensive outpatient programming, we heard a lot about it this morning, but they cannot move forward until they own the property. So this bill would make that possible. The other two bills before us were introduced by our colleague, Senator Rounds, and they focus on fixing real challenges. I want to thank Senator Rounds for for advancing these and really prioritizing these issues. Tribal members face issues, so many issues with purchased and referred care, PRC. The PRC allows the Indian Health Service to purchase care from private providers for tribal members when the needed care is not available through IHS. S. 1055, the Indian Health Service Emergency Claims Parity Act, would give patients more time to notify the PRC after receiving emergency care from 72 hours to 15 days. Right now, many tribal members are expected to meet a tight reporting deadline while dealing with a medical emergency, and this bill would bring fairness and common sense to that process. S. 699, the Purchased and Referred Care Improvement Act of 2025, addresses reimbursement delays for the purchased and referred care. When IHS payments to non-IHS providers are late, patients can end up facing collections or find themselves saddled with unexpected medical debt. S. 699 strengthens liability protections and requires procedures to be developed for IHS to reimburse patients who paid out of pocket for PRC approved care. I'd like to acknowledge and thank our witnesses for being here. It is very important that we hear from the IHS on these bills, so thank you. I'm also grateful to Vice President Ross and Council Member Seymour for traveling from Alaska and and Washington state to share their testimony. We appreciate that. We do have one more vote after this series, so we're going to be popping in and out and and committee meetings as well, so we apologize for a little bit of the disruption, but we're making good progress and I now turn to my colleague and the ranking member Schatz.
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