RURAL Rate Act

This bill (S 3688, RURAL Rate Act) increases Medicare reimbursement rates for healthcare providers in certain rural areas. It requires the Medicare program to set a minimum floor of 1.67 for practice expense and work geographic payment indices after January 1, 2026, if the standard calculation would produce a lower rate. This directly affects doctors and clinics in designated rural locations that currently receive lower Medicare payments due to geographic pricing. The change ensures these providers receive at least 1.67 times the standard rate for services, aiming to address historical underpayment. The policy applies to Medicare Part B payments for services furnished in qualifying rural areas starting in 2026.