Rebuild America’s Health Care Schools Act of 2025

This legislation amends Title XVIII of the Social Security Act to expand the definition of "reasonable costs" for Medicare reimbursement to hospitals for nursing and allied health education programs. It mandates that the Secretary of Health and Human Services include all direct and indirect costs incurred by hospitals participating in state-licensed or nationally accredited programs, beginning with cost reporting periods after enactment. The bill specifies that allowable costs include those directly incurred by the hospital, expenses allocated by a related entity , and costs associated with training program participants. It also covers faculty contracts, even if faculty are employed by an educational institution not directly related to the hospital, and shared services like payroll and administrative support from a related entity. A "related entity" is broadly defined to encompass various forms of common ownership or control. Furthermore, the legislation prohibits the recoupment or reduction of Medicare payments to hospitals for these newly allowable education costs from the date of enactment. It also requires the Secretary to refund any amounts previously recouped or reduced during the six-year period preceding enactment, if those costs would now be considered allowable.