Local Health Care Protection Act of 2026

The Local Health Care Protection Act of 2026 allows certain hospitals to continue participating in the federal drug discount program, known as Section 340B, even if they no longer meet specific financial thresholds related to serving low-income patients. This provision applies to hospitals that were already eligible for the program on July 3, 2025, and protects their access to discounted medications through cost reporting periods ending by September 30, 2030. The bill directly affects rural and underserved hospitals that may lose eligibility due to changes in Medicaid funding or Medicare payment formulas. Additionally, it requires the Government Accountability Office to conduct a study within one year on how these financial criteria are calculated and how declining payments impact essential health services in rural areas.