# Plain Language Summary: Rebuild America's Health Care Schools Act of 2025

This bill changes how Medicare pays hospitals for the costs of running nursing and allied health education programs (like training for nurses, respiratory therapists, and other healthcare workers). Right now, Medicare has strict rules about which education costs hospitals can include when they bill the government. This bill expands what hospitals can charge Medicare for, allowing them to include both direct costs (like instructor salaries and classroom supplies) and indirect costs (like administrative overhead and facility maintenance) related to these training programs.

The key change is that hospitals can now count education costs that aren't just happening at the hospital itself. If a hospital is part of a larger health system or owns related entities, the hospital can now bill Medicare for training costs that occur at those connected organizations too. For example, if a hospital system has a separate nursing school or training facility, the hospital can now charge Medicare for those education expenses as long as they're related to training students who will work at the hospital.

The bill also protects hospitals from losing money they may have already lost. If Medicare previously denied or reduced payments to a hospital for education costs that would now be allowed under this new rule, the government must refund that money to the hospital. Additionally, the bill prevents Medicare from going back and recouping (taking back) payments for education costs that hospitals have already reported, as long as those costs would be considered legitimate under the new rules.

The practical effect is that hospitals will likely receive more Medicare reimbursement for their education programs, which could help them expand nursing and healthcare worker training. However, this also means Medicare spending on these programs will increase, which could affect overall healthcare costs.

Rebuild America’s Health Care Schools Act of 2025

LaHood, Darin

Rebuild America’s Health Care Schools Act of 2025This bill allows hospitals to receive reimbursement under Medicare for certain costs associated with training nursing and allied health students in settings other than the hospital itself.&nbsp;Currently, hospitals may receive reimbursement under Medicare for the reasonable costs associated with training nursing and allied health students if certain conditions are met; the criteria vary depending on whether the students are enrolled in an educational program that is operated by the hospital or another entity. If the students are part of a program that is operated by another entity, the training must occur at the hospital itself or in areas immediately surrounding the hospital in order to qualify for reimbursement (among other requirements). The bill allows hospitals to receive reimbursement for these costs if the training is conducted at an entity that is related to the hospital (i.e., common ownership or control).The bill requires the Centers for Medicare &amp; Medicaid Services (CMS) to update regulations to reflect these changes. Additionally, the CMS may not recoup or reduce payments to hospitals with respect to costs that are allowed under the bill and must refund any such recoupments or reductions that occurred during the six-year period prior to the bill's enactment.