Overview
- Year-one awards will range from about $145 million to $281 million per state under the Rural Health Transformation program.
- The law funds $50 billion over five years to partially counter nearly $140 billion in projected rural Medicaid cuts over the next decade.
- Half of each year's funds are distributed evenly with every state receiving at least $100 million, and the remainder is allocated based on rurality, existing infrastructure, and state applications submitted in the fall.
- CMS Administrator Mehmet Oz said the grants are intended to right-size rural systems rather than pay off bills, citing widening life-expectancy gaps tied to zip code.
- Officials plan annual re-scoring and can claw back money if states fail to implement proposed reforms, while a 15% cap on using funds for direct provider pay has drawn criticism from opponents.