HR6167-119

What This Bill Does

The HEALTH Act creates tax and liability incentives for physicians furnishing unreimbursed charity care. It adds a tax deduction for physicians equal to the unreimbursed Medicare-based value of qualified charity care furnished during the taxable year. That value is the amount payable for the care under the Medicare physician fee schedule. Qualified charity care means physicians services furnished without reimbursement or expectation of reimbursement to an individual enrolled in Medicaid or CHIP. The definition excludes services for which funding is prohibited under specified fiscal year 2024 appropriations provisions, sex reassignment surgeries furnished for gender alteration of a transgender individual, and hormone treatments furnished for that purpose. The deduction is added to the standard deduction rules and applies to qualified charity care furnished after December 31, 2025. The bill also amends the Public Health Service Act to protect physicians and attending medical personnel from federal or State civil liability for harm caused by acts or omissions during qualified charity care, unless the conduct was intentional, knowing, reckless, or grossly negligent. It preempts inconsistent State or local laws unless those laws give defendants greater protection.

Who Benefits and How

Physicians providing free care to Medicaid enrollees benefit from a tax deduction based on Medicare physician fee schedule value. Physicians providing free care to CHIP enrollees benefit from the same deduction. Medicaid and CHIP enrollees benefit if the deduction encourages more physicians to furnish unreimbursed care. Physicians and attending medical personnel benefit from civil liability protection for non-reckless charity-care acts or omissions. Healthcare access advocates benefit if tax and liability incentives increase charity care availability.

Who Bears the Burden and How

Federal tax revenue decreases when physicians claim the new deduction. Treasury and IRS staff must administer the deduction, standard deduction interaction, and effective date. Transgender individuals seeking excluded gender-transition services do not benefit from the qualified charity care deduction and may face reduced charity-care incentives for those services. Patients harmed by non-reckless charity-care acts or omissions may face barriers to civil recovery. State tort law systems are preempted where inconsistent with the federal liability shield unless they provide greater defendant protection.

Key Provisions

• Creates a physician tax deduction for unreimbursed qualified charity care.
• Values the deduction using Medicare physician fee schedule payment amounts.
• Limits qualified charity care to unreimbursed services for Medicaid or CHIP enrollees.
• Excludes specified prohibited-funded and gender-transition-related services from qualified charity care.
• Provides civil liability protection for non-reckless charity-care acts or omissions.
• Preempts inconsistent State or local liability laws unless they provide greater defendant protection.