The HEALTH Act of 2025 creates two main benefits for doctors who provide free medical care to low-income patients. First, it allows physicians to claim a tax deduction for the value of charity care they provide to patients covered by Medicaid or the Children's Health Insurance Program (CHIP). The deduction is based on what Medicare would normally pay for those services, even though the doctor received no payment. For example, if a doctor performs a $500 surgery for free on a Medicaid patient, they could deduct $500 from their taxable income, reducing their tax bill.

Second, the law protects doctors from lawsuits when they provide this free charity care. As long as the doctor wasn't intentional, reckless, or grossly negligent in their actions, they cannot be sued in federal or state court for any harm that results from their care. This liability protection is meant to encourage physicians to volunteer their services without fear of legal consequences. However, the law specifically excludes certain procedures from these benefits, including sex reassignment surgeries and hormone treatments for gender transition. These changes take effect for charity care provided after December 31, 2025.