House Bill No. by Representative Miller introduces the "Preservation Act For Other Rural Hospitals," which aims to create a new reimbursement framework for hospitals classified as "other rural hospitals" in Louisiana. These hospitals, defined as those licensed by the Louisiana Department of Health (LDH) with no more than 60 beds and located outside metropolitan areas, play a crucial role in providing healthcare to low-income residents. The bill mandates that the LDH maximize Medicaid reimbursement for these hospitals, ensuring they receive funding comparable to rural hospitals. It also requires the department to file a state plan amendment to guarantee that these hospitals are reimbursed at a rate of at least 110% of their reasonable costs for inpatient and outpatient services.

The legislation outlines specific provisions for the reimbursement process, including the adoption of rules that allow other rural hospitals to certify public funds for federal financial participation in Medicaid. It emphasizes that annual funding for these hospitals will be subject to separate appropriations by the legislature, distinct from existing reimbursement pools. The new payment methodologies are set to take effect for services provided on or after July 1, 2026, or as permitted by federal law. Additionally, the Act highlights the importance of documentation from these hospitals to determine optimal payment combinations, stating that those failing to provide necessary information will not be eligible for additional payments. The Act will become effective upon the governor's signature or after the lapse of time for gubernatorial action.