What H.R. 1 Could Mean for Your Hospital
What’s happening
On May 22, 2025, the House of Representatives passed H.R. 1, the One Big Beautiful Bill Act, a comprehensive legislative package advancing the President’s top domestic policy legislative priorities. The bill would, among other things, extend tax cuts enacted in the President’s first term, but which are set to expire at the end of this calendar year, but also make a number of changes to Medicaid and the Affordable Care Act, which are expected to result in millions of Americans losing health care coverage. The bill now goes to the Senate, where legislators will likely amend the bill while also attempting to keep large portions of the House package. Congressional Republicans hope to have a final bill for President Trump to sign into law by July 4, 2025.
Of interest
As currently written, H.R. 1 includes changes to the following policies important to hospitals:
- Medicaid and Affordable Care Act Exchange enrollment processes and eligibility
- Medicaid work requirements
- Provider taxes
- Medicare physician payment adjustment
- Rural emergency hospital definition
- Medicaid disproportionate share hospital payments
- Taxes related to executive compensation
Our partners at McDermott+, one of healthcare’s most trusted and respected policy and lobbying consulting firms, wrote a summary of H.R. 1 that provides an overview of the potential changes. McDermott+ also created a Reconciliation Roadmap Resource Center that features healthcare-related updates and resources to help you follow the budget reconciliation process and understand the legislation’s potential impact on your organization.
Why you should care
The provisions included in H.R. 1 will, if implemented, impact whether and how patients are insured and hospitals are paid. Hospital leaders should be informed about the potential policy changes and how they could impact your organization.
Looking to learn more?
McDermott+ offers valuable insights into what these policy updates mean and how they could affect organizations. Read more to see what McDermott+ is saying about these proposals and how your organization could be impacted.
Click here to read the summary of the legislation’s healthcare provisions and click here to explore the Reconciliation Roadmap.