Rural Health Clinic Location Modernization Act of 2025

Key Points

• Congress would update the Medicare rule for what counts as a “rural health clinic” based on how the Census defines city areas.
• The bill switches the cutoff from “urbanized area” to “urban area with a population of 50,000 or more.”
• Clinics located in smaller towns and small cities may find it easier to qualify as rural health clinics under Medicare.
• The change would start on January 1, 2027, giving clinics and Medicare time to adjust their paperwork and status.
• If a clinic’s Medicare payments depend on rural health clinic status, this could affect how much it gets paid and whether it can keep offering local services.