Medicare Advantage Reimbursement Remains Top Challenge for RHCs

Mo Sullivan, Government Affairs Associate, NARHC

Medicare Advantage (MA) reimbursement and MA administrative challenges are the two largest concerns for Rural Health Clinics (RHCs), according to NARHC’s 2025 Policy Survey. In a troubling trend, this year's survey revealed that more than half of RHCs receive less reimbursement from MA plans than from Traditional Medicare.

“Over half of RHCs nationwide are struggling financially due to MA plans, and Congress must act to prevent a wave of clinic closures,” said Sarah Hohman, Director of Government Affairs at NARHC. “Medicare Advantage reform remains a top priority for NARHC’s advocacy efforts on Capitol Hill.”

Despite these challenges, the number of patients receiving essential care at RHCs continues to increase annually. "This year's survey, in line with the last two years, indicates that 39.3 million rural Americans or roughly 62% of the rural population are served by RHCs," said Nathan Baugh, Executive Director of NARHC. "This figure is especially valuable when demonstrating the scale and growth of the RHC program to policymakers." According to previous NARHC surveys, 38.4 million patients were served by RHCs in 2022, and 38.7 million in 2023.

Other key results from the survey show that telehealth remains popular among RHCs with over 66% of respondents indicating they use telehealth services for medical visits. 30% of respondents are committed to expanding these services, while 64% remain satisfied with their current levels of utilization.

This year, NARHC received approximately 350 survey submissions representing over 1,200 RHCs, significantly more than years prior. "This survey is critically important because it is the primary method for gathering data on the RHC program. We are grateful to the RHC community for understanding the importance of this data gathering effort and look forward to using these metrics as we continue to advocate for the 5,600+ RHCs across the country," said Hohman. For more information on advocacy opportunities, visit NARHC.org or contact NARHC’s Government Affairs Associate at Mo.Sullivan@NARHC.org.

The full 2025 survey results are available here.

With any questions about the RHC program or the 2025 survey results, please contact Sarah Hohman, Director of Government Affairs, at Sarah.Hohman@NARHC.org.