H.R. 8986House119th Congress (2025-2027)In Committee

Ensuring Rural Health Care Access for Military and Tribal Families Act

Introduced May 21, 2026

AI-Generated Summary

Updated June 2, 2026 at 6:51 AM UTC

The bill amends the Social Security Act to let states label certain hospitals as critical access hospitals (CAHs) for Medicare when they serve military families, veterans, and tribal populations in rural areas. It creates a new set of criteria that can replace the usual CAH requirements, aiming to improve health‑care access for these groups. The changes also let such hospitals add psychiatric or rehabilitation units without the normal bed‑count limits.

Key Provisions

  • Adds a new subparagraph (F) to the definition of critical access hospitals, allowing states to designate a facility as a CAH even if it doesn’t meet the standard criteria, provided it meets at least three of five specific conditions.
  • The conditions include: serving TRICARE and veteran patients in rural areas; being located in a rural county or on a reservation; not being a sole community hospital; having at least 8% of total revenue from TRICARE patients; and having at least 15% of labor‑and‑delivery revenue from TRICARE patients.
  • Allows facilities that meet these conditions to create psychiatric and rehabilitation distinct‑part units without being limited by the usual bed‑count restrictions, and these units won’t affect the test for whether the hospital is primarily engaged in certain services.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

May 21, 2026

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HouseIntro Referral

Introduced in House

May 21, 2026

HouseIntro Referral

Referred to the House Committee on Ways and Means.

May 21, 2026

Bill Text

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Introduced in HouseIssued May 21, 2026

I

119th CONGRESS

2d Session

H. R. 8986

IN THE HOUSE OF REPRESENTATIVES

May 21, 2026

Mr. Newhouse (for himself and Mr. Larsen of Washington) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend title XVIII of the Social Security Act to allow for the designation of certain facilities as critical access hospitals under the Medicare program.

1.

Short title

This Act may be cited as the Ensuring Rural Health Care Access for Military and Tribal Families Act.

2.

Providing essential health care access for members of the Armed Forces, dependents, and veterans in rural areas

Section 1820(c)(2) of the Social Security Act (42 U.S.C. 1395i–4(c)(2)) is amended—

(1)

in subparagraph (B)(i), by inserting subject to subparagraph (F), before is a hospital;

(2)

in subparagraph (E)(ii), by striking The total and inserting Subject to subparagraph (F), the total; and

(3)

by adding at the end the following new subparagraph:

(F)

Essential health care access for members of the Armed Forces, dependents, and veterans in rural areas

(i)

In general

Beginning October 1, 2026, a State may designate a facility as a critical access hospital without regard to the criteria under subparagraph (B)(i) if the facility meets 3 or more of the following criteria:

(I)

The hospital—

(aa)

delivers health care services to individuals covered under the TRICARE program (as defined in section 1072 of title 10, United States Code) and veterans enrolled in the patient enrollment system under section 1705 of title 38, United States Code, living in rural areas; and

(bb)

is located in a county (or equivalent unit of local government) in a rural area (as defined in section 1886(d)(2)(D)) or is treated as being located in a rural area pursuant to section 1886(d)(8)(E), or is located in an area that otherwise meets the definition of rural established by the Federal Office of Rural Health Policy.

(II)

The hospital is not a sole community hospital (as defined in section 1886(d)(5)(D)(iii)).

(III)

At the time of designation, 8 percent or more of the annual gross revenue of the hospital and its provider-based departments, including affiliated outpatient department and provider-based clinics, is derived from services provided to individuals covered under the TRICARE program.

(IV)

At the time of designation, 15 percent or more of the annual gross revenue from labor and delivery services of the hospital is derived from services provided to individuals covered under the TRICARE program.

(V)

The hospital is located on a reservation (as defined in section 4 of the Indian Health Care Improvement Act).

(ii)

Psychiatric and rehabilitation distinct part units

A facility described in clause (i) may establish a distinct part unit under subparagraph (E) without regard to the limitation on number of beds under clause (ii) of such subparagraph. The Secretary may not take a distinct part unit so established by such facility into account when determining whether such facility is primarily engaged in providing the services described in section 1861(e)(1).

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