H.R. 10134 — Local Health Care Protection Act of 2026

This section deems hospitals that participated in the 340B drug discount program on July 3, 2025, under subparagraphs (L), (M), or (O) of section 340B(a)(4) as covered entities for cost reporting periods beginning in FY2026 through those ending by September 30, 2030, even if they fail to meet the applicable disproportionate share adjustment percentage requirement. It also requires the Comptroller General to submit a report to Congress within one year evaluating criteria for covered entity status, the impact of declining Medicare disproportionate share payments in rural areas, and proposals to revise the payment adjustment formula.