New $50B Rural Health Transformation Program Creates State Application Requirements Under Reconciliation Law

The One Big Beautiful Bill Act established a $50 billion Rural Health Transformation Program to offset anticipated Medicaid cuts and address rural hospital closures. States must submit applications to CMS detailing plans to improve rural access, health outcomes, and provider partnerships, with half the funding distributed evenly and half awarded competitively based on need. The program is particularly relevant to Medicaid managed care operations given the law's estimated $1 trillion in Medicaid reductions over ten years and new requirements around community engagement and enrollment.

Managed Care · Finance

This is outside commentary from Sellers Dorsey, not part of Medicaid Monitor's independently scored news coverage.

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