[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10134 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                               H. R. 10134

To establish an eligibility exception for the drug discount program due 
                    to cuts to the Medicaid program.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            August 20, 2026

 Ms. Scholten introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL


 
To establish an eligibility exception for the drug discount program due 
                    to cuts to the Medicaid program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Local Health Care Protection Act of 
2026''.

SEC. 2. ELIGIBILITY EXCEPTION FOR THE DRUG DISCOUNT PROGRAM DUE TO CUTS 
              TO THE MEDICAID PROGRAM.

    (a) In General.--Notwithstanding any other provision of law, in the 
case of a hospital described in subsection (b) that, with respect to 
cost reporting periods that begin during fiscal year 2026 or a 
subsequent fiscal year, but do not end after September 30, 2030, does 
not meet the applicable requirement for the disproportionate share 
adjustment percentage described in subsection (c), but otherwise meets 
the requirements for being a covered entity under subparagraph (L), 
(M), or (O) of subsection (a)(4) of section 340B of the Public Health 
Service Act (42 U.S.C. 256b) and is in compliance with all other 
requirements of the program under such section, shall be deemed a 
covered entity for purposes of such section for the period--
            (1) beginning on the date of the enactment of this Act (or, 
        if later, with the first of such cost reporting periods for 
        which the hospital does not so meet such applicable requirement 
        for the disproportionate share adjustment percentage, but 
        otherwise meets all other such requirements for being such a 
        covered entity and of such program); and
            (2) ending with the last of such cost reporting periods 
        (ending not later than September 30, 2030) for which the 
        hospital does not so meet such applicable requirement for the 
        disproportionate share adjustment percentage, but otherwise 
        meets all other such requirements for being such a covered 
        entity and of such program.
    (b) Hospitals.--A hospital described in this subsection is an 
entity that, on July 3, 2025, was a covered entity described in 
subparagraph (L), (M), or (O) of subsection (a)(4) of section 340B of 
the Public Health Service Act participating in the drug discount 
program under such section.
    (c) Applicable Requirement for Disproportionate Share Adjustment 
Percentage.--The applicable requirement for the disproportionate share 
adjustment percentage described in this subsection is--
            (1) in the case of a hospital described in subsection (a) 
        that otherwise meets the requirements under subparagraph (L) or 
        (M) of section 340B(a)(4) of the Public Health Service Act, the 
        requirement under subparagraph (L)(ii) of such section; and
            (2) in the case of a hospital described in subsection (a) 
        that otherwise meets the requirements under subparagraph (O) of 
        such section 340B(a)(4), the requirement with respect to the 
        disproportionate share adjustment percentage described in such 
        subparagraph (O).
    (d) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Comptroller General of the United States shall conduct 
a study and submit to Congress a report on the criteria used to 
determine whether an entity is a covered entity and the criteria used 
by States to determine whether a hospital serves a disproportionate 
number of low income patients with special needs for purposes of 
section 1923 of the Social Security Act (42 U.S.C. 1396r-4). Such 
report shall also--
            (1) evaluate the impact of declining payments under section 
        1886(d)(5)(F) of the Social Security Act (42 U.S.C. 
        1396ww(d)(5)(F)) in rural areas, including whether such 
        declining payments correlate with the loss of critical services 
        such as obstetrics and gynecology, oncology, or other essential 
        specialties;
            (2) review current proposals to revise the formula for 
        determining payment adjustments under such section, including 
        those put forward by the Medicare Payment Advisory Commission, 
        the American Hospital Association, America's Essential 
        Hospitals, and the Children's Health Association;
            (3) assess the strengths and weaknesses of each proposal 
        described in paragraph (2) to inform future policy decisions;
            (4) analyze the current methodology for determining such 
        payment adjustments, including any changes in such methodology 
        to account for recent litigation; and
            (5) identify common factors and underlying causes that lead 
        to a decline in such payment adjustments for hospitals, 
        including--
                    (A) whether disability determinations made by the 
                Social Security Administration accurately reflect 
                eligibility, particularly in light of case backlogs; 
                and
                    (B) whether limited post-acute care capacity in 
                rural or underserved areas is impacting such payment 
                adjustments.
    (e) Definition.--In this section, the term ``covered entity'' has 
the meaning given such term in section 340B(a)(4) of the Public Health 
Service Act (42 U.S.C. 256b(a)(4)).
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