S. 2715 — FAIR Act of 2025

This section amends the Medicare indirect graduate medical education (IME) payment adjustment formula under the inpatient prospective payment system (i.e., additional payments to teaching hospitals based on their resident-to-bed ratio to account for indirect teaching-related costs) to reduce a hospital's IME payment amount by 2% for each fiscal year (beginning with FY2025) for which the hospital fails to submit specified information, with the reduction applying to discharges occurring on or after October 1, 2026. The required information includes, for each approved residency training program: (1) the number of applicants from osteopathic and allopathic medical schools; (2) the number accepted from each; and (3) an affirmation that the hospital considers applicants from both types of schools and, if requiring examination scores, accepts either the Comprehensive Osteopathic Medical Licensing Examination or the United States Medical Licensing Examination at the applicant's election. The section further directs the Secretary of Health and Human Services to publish the submitted applicant, acceptance, and affirmation data on a public website for each fiscal year (beginning with FY2025) and includes a rule of construction clarifying that it does not federalize medical education or mandate acceptance of students from osteopathic or allopathic schools.