H.R. 1708: Rebuild America’s Health Care Schools Act of 2025

This bill, known as the Rebuild America’s Health Care Schools Act of 2025, aims to amend the Social Security Act to change the way costs associated with nursing and allied health education programs are treated by Medicare. The primary components of the bill can be summarized as follows:

1. Adjusting Allowable Costs

The bill proposes to include all direct and indirect costs incurred by hospitals that participate in nursing and allied health education programs as allowable costs under Medicare. This includes costs that:

• Were directly incurred by the hospital.
• Were allocated to the hospital by a related entity (such as an affiliated institution).
• Were associated with the training of participants in these programs at the hospital or at a related entity.

2. Definitions

The bill defines a "related entity" as any organization that is connected to the hospital through factors such as common ownership or control. This can include entities where:

• The hospital itself is a member of the entity.
• The entity is a member of the hospital.
• Both share the same legal entity.
• Both entities have overlapping governance (shared board members).

3. Implementation Timing

The Secretary of Health and Human Services is required to establish rules to implement these changes within 120 days following the enactment of the bill.

4. Prohibition on Recoupment of Costs

The Secretary of Health and Human Services cannot recoup or reduce Medicare payments for costs related to a nursing or allied health education program if those costs will be considered allowable under the new rules after the bill’s amendments take effect. Additionally:

• If any recoupments occurred within the six years preceding the enactment of this bill for costs related to approved education programs, the Secretary is mandated to refund those recouped amounts to the hospitals.

5. Overall Purpose

The intent of the bill is to support hospitals that are involved in training healthcare professionals by ensuring they can recover their associated costs under Medicare. This is particularly relevant as the demand for healthcare professionals continues to grow.

Relevant Companies

• HCA Healthcare (HCA) - HCA is a provider of healthcare services that includes hospital operations which may be involved in nursing and allied health education programs. The bill could impact their reimbursement for educational programs.
• LifePoint Health (LPNT) - LifePoint operates community hospitals and could see changes to its cost recovery under Medicare for nursing education programs.
• UnitedHealth Group (UNH) - As a major insurer, changes in Medicare reimbursement policies could affect the broader financial dynamics of the health care providers they work with.