Protect Medicaid and Rural Hospitals Act
Summary
The "Protect Medicaid and Rural Hospitals Act" aims to reverse changes made by the "One Big Beautiful Bill Act" regarding Medicaid state provider tax authority and state-directed payments. It also seeks to increase funding for the Rural Health Transformation Program. The bill specifically repeals sections 71115 and 71116 of Public Law 119-21 and increases funding for rural health initiatives through amendments to the Social Security Act.
This increased funding is allocated for fiscal years 2031 through 2035, with $10 billion earmarked for each year. The bill focuses on bolstering rural healthcare infrastructure and ensuring the financial stability of rural hospitals.
Introduced by Mr. Hawley, the bill has been referred to the Committee on Finance for further consideration.
Expected Effects
If enacted, the bill would restore the previous Medicaid state provider tax authority and state-directed payment rules, potentially stabilizing funding for healthcare providers. The increased funding for the Rural Health Transformation Program could lead to improved healthcare services and infrastructure in rural areas.
Rescinding amounts appropriated under the previous act could lead to short-term funding gaps, but the long-term increase in funding for rural health programs aims to offset this.
The overall effect is intended to strengthen rural healthcare systems and provide financial relief to hospitals in these areas.
Potential Benefits
- Restores Medicaid state provider tax authority, potentially stabilizing funding for healthcare providers.
- Increases funding for the Rural Health Transformation Program, improving healthcare services in rural areas.
- Provides dedicated funding of $10 billion per year for rural health from 2031 to 2035.
- Could lead to better healthcare infrastructure and access in underserved rural communities.
- Aims to ensure the financial viability of rural hospitals, preventing closures and maintaining essential services.
Potential Disadvantages
- Rescission of previously appropriated amounts could create short-term funding gaps.
- The benefits of increased funding are delayed until 2031, potentially leaving current needs unmet.
- Repealing sections of a previous act may create administrative complexities and uncertainties.
- The effectiveness of the Rural Health Transformation Program depends on proper implementation and oversight.
- Potential for unintended consequences from reversing previous legislative changes.
Constitutional Alignment
The bill's focus on healthcare funding falls under Congress's power to provide for the general welfare, as outlined in the Preamble of the US Constitution. Specifically, Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States.
The bill's provisions related to Medicaid and the Social Security Act align with the established framework for federal-state partnerships in healthcare. There are no apparent infringements on individual liberties or rights as defined in the Bill of Rights.
However, the constitutionality of specific funding mechanisms and their impact on state autonomy could be subject to judicial review.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).