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

This section requires Medicare's reasonable cost determination for hospital inpatient services to include all direct and indirect costs of state-licensed or nationally or regionally accredited nursing and allied health education programs (effective for cost reporting periods beginning on or after enactment), including costs directly incurred by the hospital, allocated by a related entity, or associated with participant training at the hospital or related entity. (Related entity includes any entity under common ownership or control with the hospital, or linked via sole corporate membership, shared legal entity, or shared board.) It further (1) directs the Secretary of Health and Human Services to issue implementing rules within 120 days of enactment, and (2) prohibits recoupment or reduction of Medicare Part A payments for such costs going forward, requiring refunds for any amounts recouped during the prior six years. (As background, Medicare reimburses hospitals for reasonable costs of inpatient services furnished to beneficiaries; this expands reimbursable education costs previously limited in scope.)