The Protect Medicaid and Rural Hospitals Act would repeal certain Medicaid changes made by the One Big Beautiful Bill Act, specifically undoing rules that allowed states to impose provider taxes and make directed payments to healthcare providers under Medicaid. The bill also increases funding for the rural health transformation program by adding $10 billion annually for fiscal years 2031 through 2035, providing $50 billion in total additional support. These changes primarily affect state Medicaid programs, rural hospitals, and healthcare providers that depend on Medicaid reimbursement and rural health funding. The expanded funding for the rural health transformation program would help support rural healthcare infrastructure and services over a five-year period beginning in 2031. The bill essentially reverses recent Medicaid policy changes and directs substantial new resources toward rural healthcare systems.
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