Local Health Care Protection Act of 2026
Latest action (20 Aug 2026): Introduced
What this bill does
H.R. 10134, the "Local Health Care Protection Act of 2026," would create a temporary exception to eligibility rules for the federal 340B drug discount program. Certain hospitals—rural referral centers, sole community hospitals, and children's hospitals that participated in 340B as of July 3, 2025—could continue to qualify as "covered entities" even if they later fall below the required disproportionate-share (DSH) payment percentage threshold, as long as they otherwise meet all other 340B requirements. This protection would apply to cost reporting periods from enactment through no later than September 30, 2030.
The bill primarily affects hospitals whose Medicaid DSH payments decline—reducing their DSH percentage below the 340B threshold—potentially due to cuts in Medicaid funding, and the low-income patients who rely on discounted drugs through those hospitals. It would allow such hospitals to keep purchasing outpatient drugs at reduced 340B prices despite the drop in their DSH standing.
The bill also directs the Comptroller General to study, within one year, the criteria used to define 340B-covered entities and state DSH determinations, the effects of declining Medicare DSH payments on rural hospital services, and various proposals to revise the payment formula, reporting findings to Congress.
The bill was introduced August 20, 2026, by Rep. Hillary Scholten and referred to the House Committee on Energy and Commerce. No further action has occurred; it would need committee consideration, House and Senate passage, and presidential signature to become law.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
This bill is in the first stage of the legislative process. It was introduced into Congress on August 20, 2026. It will typically be considered by committee next before it is possibly sent on to the House or Senate as a whole.
Common questions
- What does H.R. 10134 do?
- H.R. 10134, the "Local Health Care Protection Act of 2026," would create a temporary exception to eligibility rules for the federal 340B drug discount program. Certain hospitals—rural referral centers, sole community hospitals, and children's hospitals that participated in 340B as of July 3, 2025—could continue to qualify as "covered entities" even if they later fall below the required disproportionate-share (DSH) payment percentage threshold, as long as they otherwise meet all other 340B requirements. This protection would apply to cost reporting periods from enactment through no later than September 30, 2030. The bill primarily affects hospitals whose Medicaid DSH payments decline—reducing their DSH percentage below the 340B threshold—potentially due to cuts in Medicaid funding, and the low-income patients who rely on discounted drugs through those hospitals. It would allow such hospitals to keep purchasing outpatient drugs at reduced 340B prices despite the drop in their DSH standing. The bill also directs the Comptroller General to study, within one year, the criteria used to define 340B-covered entities and state DSH determinations, the effects of declining Medicare DSH payments on rural hospital services, and various proposals to revise the payment formula, reporting findings to Congress. The bill was introduced August 20, 2026, by Rep. Hillary Scholten and referred to the House Committee on Energy and Commerce. No further action has occurred; it would need committee consideration, House and Senate passage, and presidential signature to become law.
- Has H.R. 10134 become law?
- Not yet. As of 20 Aug 2026, H.R. 10134 is introduced.
- Who sponsored H.R. 10134?
- H.R. 10134 was sponsored by Rep. Hillary Scholten [D-MI3] (Democrat-MI), with 0 cosponsors.
- What's the latest action on H.R. 10134?
- Introduced (20 Aug 2026).
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