H.R. 6240In committeeHealth care
Bill would waive distance rule for struggling rural hospitals
Data as of July 11, 2026
A new bill lets up to 120 struggling rural hospitals skip the 35-mile rule to get higher Medicare payments.50-second read · 5 questions answered below
Decoded
What does this do?
This bill lets states waive the usual 35-mile distance rule so certain struggling rural hospitals can qualify as "critical access hospitals" and get better Medicare payment rates. Hospitals must meet criteria like serving a high-poverty or health-shortage area, having lost money two years running, submitting a financial recovery plan, and committing to add or expand a needed service. The program is capped at 120 hospitals nationwide (5 per state) and expires after 9 years.
Who does it affect?
This mainly affects rural communities at risk of losing their local hospital, as well as the Medicare program itself.
Why does it matter?
Expanding the number of critical access hospitals could increase Medicare spending, so the bill requires GAO and MedPAC studies on cost and effectiveness. Hospitals that fail to report progress could lose their special status.
What does it cost, and who pays?
- Could raise Medicare spending
- GAO and MedPAC must study costs
- No dollar figure specified
Where does it stand?
- Introduced
- House committee — You are here
- House vote
- Senate
- President's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the President.
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Official title
Rural Hospital Closure Relief Act of 2025
- Introduced:
- November 20, 2025
- Latest action:
- November 20, 2025
Referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Read the official bill on Congress.govMake the call
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