Ensuring Rural Health Care Access for Military and Tribal Families Act

Key Points

• This bill makes it easier for certain rural hospitals to earn "critical access hospital" status under Medicare, which provides higher reimbursement rates to help small hospitals stay financially viable and keep their doors open.
• To qualify under the new pathway, a hospital must meet at least 3 out of 5 criteria, including serving TRICARE-covered military families and veterans in rural areas, being located on a tribal reservation, or earning a significant share of revenue from military insurance.
• One key criterion looks at whether at least 8% of a hospital's total revenue comes from treating TRICARE patients. Another criterion focuses specifically on labor and delivery services, requiring 15% or more of that revenue to come from TRICARE patients.
• Hospitals qualifying under this new pathway would also be allowed to create psychiatric and rehabilitation units without the usual bed-count limits that apply to critical access hospitals, expanding mental health and rehab capacity in rural areas.
• If enacted, the new designation rules would take effect starting October 1, 2026. The bill was introduced with bipartisan support by Reps. Newhouse and Larsen, both of Washington state, and referred to the House Ways and Means Committee.