Rebuild America’s Health Care Schools Act of 2025
- Bill Number
- S. 1087
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Health
- Status
- Introduced
- Latest Action
- 2025-03-14: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-03-11T21:56:05Z
AI-Generated Summary
Purpose
The Rebuild America's Health Care Schools Act of 2025 aims to expand Medicare reimbursement for hospitals running nursing and allied health education programs. It adjusts what counts as allowable costs (direct expenses like salaries and indirect ones like overhead) to better support these programs, helping train more healthcare workers amid shortages.
Key Provisions
- Expanded Cost Reimbursement: Starting with cost reporting periods after enactment, Medicare must cover all direct and indirect costs for state-licensed or nationally/regionally accredited nursing and allied health programs in hospitals. This includes:
- Costs directly paid by the hospital.
- Costs allocated from "related entities" (e.g., affiliated organizations under common ownership or control).
- Expenses for training program participants at the hospital or related sites.
- Payments for faculty hired through non-related educational institutions.
- Shared services (like payroll or administration) from related educational or clinical partners.
- Definition of Related Entity: Broadly includes any group linked to the hospital by shared ownership, control, sole corporate membership, or overlapping boards/legal structures.
- Implementation Rules: The Secretary of Health and Human Services (HHS) must issue necessary regulations within 120 days of enactment to allow health systems and hospital-based schools to provide clinical training.
- No Recoupment of Past Payments: HHS cannot reclaim or reduce Medicare payments (under Part A, which covers hospital insurance) for these education costs if they appear on hospital reports and would now be allowable. For any such reductions in the prior 6 years, HHS must refund the amounts to hospitals.
Significant Changes to Existing Law
- Amends Section 1861(v)(1) of the Social Security Act, which sets rules for "reasonable costs" in Medicare hospital payments.
- Previously, Medicare might not fully reimburse certain indirect costs from affiliated entities or shared services in education programs, leading to partial funding gaps. This bill explicitly includes them, broadening reimbursable expenses without new funding caps.
- Introduces refund mechanisms for recent recoupments, shifting from past audits that clawed back funds to a more supportive reimbursement model.
Potential Impacts
- On Government Agencies: HHS and the Centers for Medicare & Medicaid Services (CMS) will handle more complex cost audits and issue new rules, potentially increasing administrative workload and Medicare spending (as reimbursements rise for education programs).
- On Citizens: Could improve access to trained nurses and allied health professionals (e.g., technicians, therapists), addressing U.S. healthcare workforce shortages and enhancing care quality, especially in underserved areas. No direct cost to individuals, but indirect benefits through a stronger healthcare system.
- On International Relations: Minimal to none; focuses on domestic Medicare and education funding.
Main Stakeholders Affected
- Hospitals and Health Systems: Primary beneficiaries, as they gain fuller Medicare reimbursements for education costs, reducing financial strain on programs.
- Nursing and Allied Health Programs: Educational institutions (hospital-based or affiliated) can expand training without reimbursement barriers.
- Healthcare Workforce: Students and faculty in these programs benefit from stable funding, potentially increasing program enrollment and graduation rates.
- Medicare Program: Taxpayers and beneficiaries indirectly affected through higher federal healthcare expenditures.
- HHS/CMS: Responsible for enforcement, rulemaking, and refunds.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens Medicare's role in funding healthcare education by clarifying cost definitions, potentially reducing future disputes over audits. Could invite lawsuits if refunds strain agency budgets or if cost inclusions are challenged as overly expansive.
- Constitutional: No major issues; aligns with Congress's spending power under Article I to regulate interstate commerce and support public health.
- Political: Bipartisan sponsorship (by Senators Klobuchar and Tillis) signals broad support for workforce development. May influence future healthcare bills by setting precedent for flexible reimbursements, amid ongoing debates on Medicare sustainability and nursing shortages.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2025-03-14: Read twice and referred to the Committee on Finance.
- 2025-03-14: Introduced in Senate
Bill Versions
- Rebuild America’s Health Care Schools Act of 2025 — issued 2025-03-14 — PDF (4 pages)