S. 2279: Protect Medicaid and Rural Hospitals Act

This bill, known as the Protect Medicaid and Rural Hospitals Act, proposes several significant changes to Medicaid and funding for rural health care. The key components of the bill are as follows:

Repeal Changes to Medicaid Provider Tax Authority

The bill seeks to repeal modifications to the Medicaid State provider tax authority that were previously established under another piece of legislation called the One Big Beautiful Bill Act. By doing this, it aims to restore how federal Medicaid funding and state taxes related to health care providers are currently managed and applied.

Repeal Changes to Medicaid Directed Payments

Similar to the above, the bill aims to repeal changes made to Medicaid State directed payments, meaning it seeks to eliminate provisions that may have altered how states direct their Medicaid funds to specific health care providers or services.

Increase Funding for Rural Health Transformation Program

The bill proposes to enhance the financial support for the rural health transformation program. Specifically, it amends existing law to allocate:

• $10 billion for fiscal year 2031
• $10 billion for fiscal year 2032
• $10 billion for fiscal year 2033
• $10 billion for fiscal year 2034
• $10 billion for fiscal year 2035

This increase in funding aims to improve health care services in rural areas, potentially assisting hospitals and health care providers in maintaining operations and enhancing facilities and services in these regions.

Overall Impact

The bill intends to reverse certain funding restrictions implemented previously, thereby providing more flexibility and funds to states for their Medicaid programs and focusing additional resources on rural health care initiatives.

Relevant Companies

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