Protect Medicaid and Rural Hospitals Act

This bill repeals two provisions from a previous reconciliation act that reduced Medicaid funding flexibility for states and rescinds related funds. It directly affects Medicaid programs and rural hospitals by restoring prior funding structures and adding $10 billion annually from 2031 through 2035 to the Rural Health Transformation Program. Key mechanisms include undoing changes to state Medicaid provider tax authority and state-directed payments, while increasing annual funding for rural hospital support. The bill makes concrete policy changes by reversing specific funding cuts and guaranteeing new, sustained investment for rural healthcare facilities.