HouseH.R. 10729119th Congress

Long-Term Rural Health Investment Act of 2026

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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10729 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                               H. R. 10729

  To amend Public Law 119-21 to adjust limitations on State directed 
 payments under the Medicaid program, and to repeal certain provisions 
                       related to provider taxes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 5, 2026

Ms. Davids of Kansas introduced the following bill; which was referred 
                to the Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL

 
  To amend Public Law 119-21 to adjust limitations on State directed 
 payments under the Medicaid program, and to repeal certain provisions 
                       related to provider taxes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Long-Term Rural Health Investment 
Act of 2026''.

SEC. 2. ADJUSTING LIMITATIONS ON STATE DIRECTED PAYMENTS.

    (a) In General.--Section 71116 of Public Law 119-21 is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) In General.--The Secretary of Health and Human Services (in 
this section referred to as the Secretary) shall revise section 
438.6(c)(2)(iii) of title 42, Code of Federal Regulations (or a 
successor regulation), such that, with respect to a payment described 
in such subsection made for a service furnished during a rating period 
beginning on or after January 1, 2030, the total payment rate for such 
service is limited to 200 percent of the specified total published 
Medicare payment rate (or, in the absence of a specified total 
published Medicare payment rate, the average commercial rate in the 
State).'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Grandfathering Certain Payments.--In the case of a payment 
described in section 438.6(c)(2)(iii) of title 42, Code of Federal 
Regulations (or a successor regulation), for which written prior 
approval (or a good faith effort to receive such approval, as 
determined by the Secretary) was made before July 1, 2028, for the 
first rating period occurring after July 1, 2028, or a payment so 
described for such rating period for which a completed preprint was 
submitted to the Secretary prior to the date of enactment of the Long-
Term Rural Health Investment Act of 2026, beginning with the rating 
period on or after January 1, 2030, the total amount of such payment 
shall be reduced by 10 percent of the amount of any such payment made 
during the preceding rating period, each year until the total payment 
rate for such service is equal to the rate for such service specified 
in subsection (a).'';
            (3) by striking subsection (c);
            (4) in subsection (d)--
                    (A) by striking paragraph (2);
                    (B) by redesignating paragraphs (3) through (5) as 
                paragraphs (2) through (4), respectively; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(5) Final capitation rate.--The term `final capitation 
        rate' has the meaning given such term in section 438.3(c) of 
        title 42, Code of Federal Regulations (or a successor 
        regulation).
            ``(6) Medicaid managed care organization.--The term 
        `medicaid managed care organization' has the meaning given such 
        term in section 1903(m)(1)(A) of the Social Security Act (42 
        U.S.C. 1396b(m)(1)(A)).
            ``(7) Prepaid inpatient health plan.--The term `prepaid 
        inpatient health plan' has the meaning given such term in 
        section 438.2 of title 42, Code of Federal Regulations (or a 
        successor regulation).
            ``(8) Prepaid ambulatory health plan.--The term `prepaid 
        ambulatory health plan' has the meaning given such term in 
        section 438.2 of title 42, Code of Federal Regulations (or a 
        successor regulation).''; and
            (5) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Historical Utilization and Separate Payment Rates.--The 
Secretary shall--
            ``(1) revise section 438.6(c)(2)(vii)(B) of title 42, Code 
        of Federal Regulations (or a successor regulation), such that, 
        with respect to a payment described in section 438.6(c)(2)(iii) 
        of title 42, Code of Federal Regulations (or a successor 
        regulation), made for services furnished during a rating period 
        beginning on or after January 1, 2028, a State may condition 
        such payment on the utilization and delivery of services 
        outside of the rating period for which the State is seeking 
        written prior approval and require that such payments be 
        reconciled to utilization during such rating period; and
            ``(2) revise section 438.6(c)(6) of title 42, Code of 
        Federal Regulations (or a successor regulation), such that, 
        with respect to a payment described in section 438.6(c)(2)(iii) 
        of title 42, Code of Federal Regulations (or a successor 
        regulation), made for services furnished during a rating period 
        beginning on or after January 1, 2028, a State may withhold a 
        portion of the final capitation rate to pay a medicaid managed 
        care organization, prepaid inpatient health plan, or prepaid 
        ambulatory health plan separately for such payment and may 
        require such an organization or plan to retain a portion of the 
        final capitation rate separately to comply with such 
        payment.''.
    (b) State Directed Payment Reporting Requirements.--Section 1903 of 
the Social Security Act (42 U.S.C. 1396b) is amended by adding at the 
end the following new subsection:
    ``(cc) State Directed Payment Reporting Requirements.--
            ``(1) Collection and availability of state directed payment 
        data.--
                    ``(A) In general.--Beginning January 1, 2027, each 
                State shall, not later than 1 year after the end of 
                each rating period, submit to the Secretary through the 
                Transformed Medicaid Statistical Information System (T-
                MSIS) (or a successor system) the data described in 
                subparagraph (B), as a requirement for a State plan or 
                State plan amendment that would provide for a State 
                directed payment.
                    ``(B) Data described.--For purposes of subparagraph 
                (A), the data described in this subparagraph is the 
                following:
                            ``(i) The total amount (in dollars) 
                        expended by a managed care organization, 
                        prepaid inpatient health plan, or prepaid 
                        ambulatory health plan for State directed 
                        payments during such rating period.
                            ``(ii) Identifiers, as specified by the 
                        Secretary, for enrollees, providers, managed 
                        care organizations, prepaid inpatient health 
                        plans, and prepaid ambulatory health plans.
                            ``(iii) Amounts paid to individual 
                        providers under a State directed payment.
                            ``(iv) Amounts collected by the State to 
                        fund the non-Federal share of State directed 
                        payments, disaggregated by provider type.
                            ``(v) Procedure and diagnosis codes for any 
                        item or service for which a State directed 
                        payment was made.
                            ``(vi) Amounts allowed, billed, and paid 
                        (including the amount that represents the 
                        payment amount negotiated by the relevant 
                        managed care organization, prepaid inpatient 
                        health plan, or prepaid ambulatory health plan, 
                        the amount of the State directed payment, and 
                        any other amounts included in the total amount 
                        paid to the provider) in connection with an 
                        item or service for which a State directed 
                        payment was made.
            ``(2) Definitions.--In this subsection:
                    ``(A) Medicaid managed care organization.--The term 
                `medicaid managed care organization' has the meaning 
                given such term in section 1903(m)(1)(A).
                    ``(B) Prepaid inpatient health plan.--The term 
                `prepaid inpatient health plan' has the meaning given 
                such term in section 438.2 of title 42, Code of Federal 
                Regulations (or a successor regulation).
                    ``(C) Prepaid ambulatory health plan.--The term 
                `prepaid ambulatory health plan' has the meaning given 
                such term in section 438.2 of title 42, Code of Federal 
                Regulations (or a successor regulation).
                    ``(D) Rating period.--The term `rating period' has 
                the meaning given such term in section 438.2 of title 
                42, Code of Federal Regulations (or a successor 
                regulation).
                    ``(E) State directed payment.--The term `State 
                directed payment' means a payment described in section 
                438.6(c)(2)(iii) of title 42, Code of Federal 
                Regulations (or a successor regulation).''.
    (c) Reverting Regulations.--For the period beginning on the date of 
enactment of this section and ending on January 1, 2030, the Secretary 
shall apply section 438.6(c)(2)(iii) of title 42, Code of Federal 
Regulations, as such section was in effect on the day before the date 
of enactment of Public Law 119-21.

SEC. 3. REPEAL OF PROVISIONS OF PUBLIC LAW 119-21 RELATED TO PROVIDER 
              TAXES.

    (a) Repeal.--Sections 71115 and 71117 of Public Law 119-21 are 
repealed and section 1903(w) of the Social Security Act (42 U.S.C. 
1396b(w)) shall be applied as if such sections had not been enacted.
    (b) Rescission.--The amounts appropriated under section 71115(c) of 
Public Law 119-21 are hereby rescinded.
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