Sponsors (12)
The bill incentivizes more pro bono care for low‑income patients by offering a tax deduction and liability protections for clinicians, at the tradeoff of reduced federal revenue, narrower legal recourse and state authority, exclusions for certain services (notably gender‑affirming care), and definitional uncertainty about who is covered.
Physicians who provide unreimbursed care to Medicaid and CHIP enrollees can deduct the Medicare fee‑schedule value of that charity care and the provision is available to non‑itemizers, lowering physician taxable income and making the benefit claimable by more clinicians.
Low‑income patients (including Medicaid/CHIP enrollees) may gain greater access to charitable medical services because the combination of tax and liability incentives makes clinicians more likely to offer uncompensated care.
Physicians and attending medical personnel who provide qualified charity care face reduced civil liability risk under a uniform federal standard, lowering legal risk and simplifying cross‑state provision of pro bono services.
Because the deduction reduces taxable income, taxpayers broadly bear the cost through lower federal revenue, which could increase deficits or crowd out funding for other programs.
Charity‑care liability protections and the federal standard can reduce harmed patients' ability to recover damages for non‑gross negligence and limit state and local governments' authority to impose stricter liability or consumer protections.
Physicians who provide unpaid gender‑affirming surgeries and hormone treatments are excluded from the deduction, which may discourage provision of that care and worsen access for transgender patients.
Based on analysis of 3 sections of legislative text.
Allows physicians a tax deduction for unreimbursed Medicare‑based value of charity care to Medicaid/CHIP enrollees and limits civil liability for such care.
Creates a new federal tax deduction for physicians equal to the Medicare fee-schedule value of unreimbursed “qualified charity care” they provide to Medicaid and CHIP enrollees, and establishes a federal limitation on civil liability for physicians and attending medical personnel who provide that same qualified charity care (except for intentional, knowing, reckless, or grossly negligent acts). The tax change applies to charity care furnished after December 31, 2025; the liability limitation cross‑preempts conflicting state or local laws unless the state law offers greater protection for the defendant.
Official title: To amend the Internal Revenue Code of 1986 to provide a deduction for certain charity care furnished by physicians, to amend the Public Health Safety Act to limit the liability of physicians providing certain charity care, and for other purposes.
Introduced November 20, 2025 by Daniel A. Webster · Last progress November 20, 2025