The RURAL Rate Act amends Medicare payment rules to increase reimbursement rates for healthcare providers in certain rural and underserved areas. Specifically, the bill raises the minimum floor for two geographic payment adjustment factors—the practice expense index and the work index—to 1.67, meaning providers in qualifying areas will receive higher Medicare payments if their calculated indices fall below this threshold. This change takes effect on January 1, 2026, and applies to healthcare services furnished in the specified state or states. The bill directly affects doctors, hospitals, and other healthcare providers serving rural communities, as well as Medicare beneficiaries in those areas who may see improved access to care. No specific funding amount is mentioned in the legislation, as the costs would be absorbed within existing Medicare payment mechanisms.
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