Rural Health Clinic Location Modernization Act of 2025
Rural Health Clinic Location Modernization Act of 2025 would change where a health clinic must be located to qualify as a Rural Health Clinic (RHC) under Medicare. Specifically, it rewrites the geographic criterion in the Medicare statute from requiring placement in an “urbanized area” to requiring placement in an “urban area” with a population of 50,000 or more, as defined by the Census. The change takes effect beginning January 1, 2027. The bill’s stated purpose is to maintain standards for RHC qualification, while updating the location rule to align with Census geography and population data. In short, the bill narrows or redefines which locations can qualify as RHCs by tying eligibility to larger urban areas (populations of 50k+), with a delayed effective date to allow transition and implementation.
Key Points
- 1The eligibility location standard for Rural Health Clinics is changed from “an urbanized area” to “an urban area with a population of 50,000 or more,” based on Census definitions.
- 2The change is codified in Section 1861(aa)(2) of the Social Security Act (title XVIII, Medicare).
- 3Effective date: January 1, 2027.
- 4Purpose: to maintain and modernize standards for RHC qualification, incorporating updated Census geographic/population thresholds.
- 5The bill was introduced in the House (H.R. 5198) and referred to the Committee on Energy and Commerce and the Committee on Ways and Means; sponsors include Mr. Mann and a bipartisan group.