S. 1960 — PEAKS Act

This section deems certain hospitals designated as critical access hospitals (CAHs)—small rural facilities eligible for cost-based Medicare reimbursement if located at least 35 miles (or 15 miles for mountainous terrain or secondary roads) from the nearest hospital—to meet the 15-mile distance requirement under CAH criteria on or after January 1, 2026. Eligible hospitals are those that met the 15-mile requirement at their last certification and, after enactment, have a new hospital or facility located 10-15 miles away. The Secretary of Health and Human Services must promulgate regulations to implement this provision not later than one year after enactment.

This section modifies the distance requirement for Medicare payment for ambulance services furnished by critical access hospitals (CAHs)—rural facilities eligible for cost-based reimbursement—from a 35-mile drive to a 15-mile drive (from 35 miles), for services furnished on or after January 1, 2026, in mountainous terrain or areas with only secondary roads available. (Thus, more CAHs in such areas may qualify as the closest provider eligible for payment.)