- Potential benefitAllows hospitals to claim affiliated nursing and allied health education costs as Medicare reimbursable expenses.
- Potential benefitIncreases Medicare reimbursements supporting hospital-run education programs and related operational budgets.
- CitiesEncourages health systems to operate or partner with education programs, expanding clinical training capacity.
Rebuild America’s Health Care Schools Act of 2025
Referred to the House Committee on Ways and Means.
The bill amends Medicare hospital cost reimbursement rules to require that reasonable costs for hospital-affiliated nursing and allied health education programs include direct and indirect costs, including those allocated by related entities. It defines "related entity" broadly, requires HHS to issue implementing rules within 120 days, prohibits Medicare recoupment of such costs once allowed, and requires refunds for certain recoupments during the prior six years.
Liberals emphasize workforce benefits; conservatives emphasize Medicare cost growth.
Relative to its intended legislative type, this bill clearly effects a substantive change to Medicare cost reimbursement by amending 42 U.S.C. 1395x(v)(1) to include more direct and indirect costs for hospital-run or affiliated nursing and allied health education programs, defines 'related entity,' mandates rulemaking within 120 days, and prohibits recoupment with a 6-year refund window.
The bill amends Medicare hospital cost reimbursement rules to require that reasonable costs for hospital-affiliated nursing and allied health education programs include direct and indirect costs, including those allocated by related entities.
It defines "related entity" broadly, requires HHS to issue implementing rules within 120 days, prohibits Medicare recoupment of such costs once allowed, and requires refunds for certain recoupments during the prior six years.
Narrow, administratively focused bill with clear beneficiary group improves prospects, but added Medicare costs and lack of offsets reduce likelihood without coalition or package inclusion.
Relative to its intended legislative type, this bill clearly effects a substantive change to Medicare cost reimbursement by amending 42 U.S.C. 1395x(v)(1) to include more direct and indirect costs for hospital-run or affiliated nursing and allied health education programs, defines 'related entity,' mandates rulemaking within 120 days, and prohibits recoupment with a 6-year refund window. It provides concrete statutory text for the core change but leaves several operational and fiscal details to forthcoming rulemaking.
Liberals emphasize workforce benefits; conservatives emphasize Medicare cost growth.
Who stands to gain, and who may push back.
These are examples from the analysis, not a ranked list of the most-affected groups.
- Federal agenciesLikely increases Medicare spending and federal outlays by expanding reimbursable cost categories and refunds.
- Potential burdenCreates opportunities for cost-shifting from related entities to hospitals, potentially inflating reimbursable claims.
- Potential burdenMay advantage large integrated health systems over independent hospitals and standalone educational institutions.
Why the argument around this bill splits.
Liberals emphasize workforce benefits; conservatives emphasize Medicare cost growth.
Overall supportive: expands funding recognition for hospital-based training and could strengthen the health workforce pipeline.
Will welcome the anti-recoupment and refund provisions for hospitals, while seeking safeguards against privatization or profiteering.
Cautiously supportive: recognizes workforce benefits and clarity for hospitals, but wants fiscal estimates and anti-abuse safeguards.
Will look to HHS rulemaking for specifics and oversight mechanisms.
Skeptical: opposes expanding Medicare-covered costs and potential federal subsidy of private training.
Concerned about budgetary impact, gaming through related entities, and growing federal involvement in provider operations.
The path through Congress.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Narrow, administratively focused bill with clear beneficiary group improves prospects, but added Medicare costs and lack of offsets reduce likelihood without coalition or package inclusion.
- Magnitude of net Medicare cost increases (no CBO estimate in text)
- Level of hospital and health system lobbying support or opposition
Recent votes on the bill.
No vote history yet
The bill has not accumulated any surfaced votes yet.
Go deeper than the headline read.
Liberals emphasize workforce benefits; conservatives emphasize Medicare cost growth.
Narrow, administratively focused bill with clear beneficiary group improves prospects, but added Medicare costs and lack of offsets reduce…
Relative to its intended legislative type, this bill clearly effects a substantive change to Medicare cost reimbursement by amending 42 U.S.C. 1395x(v)(1) to include more direct and indirect costs for hospital-run or af…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.