introduced the Defend Rural Health Act to safeguard federal resources intended for rural hospitals and the communities they serve. The bill closes a long-standing loophole that has allowed large urban hospitals to simultaneously classify as both “urban” and “rural,” enabling them to improperly access benefits reserved for rural providers.
Eliminate the dual-classification loophole that lets urban hospitals claim both urban and rural status and access rural hospital benefits, while establishing stricter eligibility standards for federal rural health programs.
Occurrences
Evidence
Miller's official House press-release index says Representatives Carol Miller and Dave Taylor introduced the Defend Rural Health Act to safeguard federal resources for rural hospitals and close a loophole allowing large urban hospitals to classify as both urban and rural and access benefits reserved for rural providers.
Congress.gov lists H.R.7409 as introduced on February 5, 2026, referred to the House Committee on Ways and Means, with status 'Introduced'; its title would limit Medicare geographic reclassification of certain hospitals.
Carol Miller's Congress.gov member activity includes H.R.7409, described as a bill to amend title XVIII of the Social Security Act to limit geographic reclassification of certain hospitals; it shows the latest action as referral to Ways and Means and status as introduced.
HRSA's 340B hospital eligibility guidance lists Rural Referral Centers as eligible covered entities and says hospitals eligible in more than one 340B category may select one category.
The Social Security Act still provides that, for eligible subsection (d) hospitals located in urban areas, the Secretary shall treat the hospital as located in the rural area of the state when statutory criteria are met.
Assessments
The promised federal policy change has not been delivered. The relevant bill, H.R.7409 in the 119th Congress, matches the claimed hospital reclassification loophole issue and Miller materially advanced it as part of the Defend Rural Health Act effort, but Congress.gov still shows the bill only introduced and referred to House Ways and Means, with no passage or enactment. Existing HRSA and Social Security Act frameworks still appear to allow the relevant rural-referral or urban-to-rural classification mechanisms. This supports credit for a serious legislative attempt, not fulfillment of the promised outcome.