AMERICAN HEALTH ACT
Legislative counsel, fiscal, and implementation companion
Prepared September 19, 2026. This report accompanies the complete 36-title replacement bill. It is explanatory material, not part of the proposed statutory text. The bill controls in case of a difference. Dollar figures described as statutory amounts are proposed legislative choices. Scenario inputs are assumptions, not verified estimates of the legislation's actual cost or revenue.
1. Scope of the expansion
The expanded bill contains 314 sections, including the short title and statutory table of contents. It retains and refines the original 18-title framework and adds 18 implementation and delivery titles comprising 216 additional sections. The operative text, excluding the table of contents, contains approximately 49,000 words. The attached PDF contains 203 pages, with 193 pages devoted to titles I through XXXVI after the introductory material and contents. The separate report is not counted toward that total.
The drafting method is to pair entitlements with delivery obligations, delivery obligations with payment and staffing, and administrative discretion with process and review. Coverage is not dependent on the existence of a completed national database, a participating State, an annual appropriation, or a person's payment of an individual tax. Conversely, the statute does not compel an individual professional to work, guarantee that a particular scientific discovery will occur, or treat a building grant as proof that a functioning hospital exists.
This expansion leaves the policy's central choices intact: comprehensive benefits by day 180; an early benefit phase by day 90; no charges for covered services; compensation floors; broad medical-product pricing powers; replacement of duplicative primary insurance; limited rather than full coverage for excluded eligibility categories; and permanent federal payment authority. The new provisions specify implementation, not merely additional purposes or findings.
Three material refinements deserve particular attention. Section 1602 now separates absolute prohibitions on selling health data, targeted advertising, and discriminatory disclosure from the distinct consent rule for optional commercial model training. Section 1305 now requires public access to funded peer-reviewed articles without an embargo at publication. Section 3309 requires an express, limited remedial consent in a State's voluntarily accepted compact rather than assuming that regulation alone waives sovereign immunity. The research-publication provision is consistent in direction with NIH's current no-embargo public-access approach, although the bill supplies its own statutory terms. [S24]
2. Principal design choices and their consequences
Coverage and physical delivery
The full-benefit date is 180 days after enactment. Dental, vision, hearing, mental health, prescription drugs, hospital care, and medically necessary long-term services begin together. Construction, training, and technology programs must commence and satisfy their own milestones; the law does not declare their physical completion at six months. Access failures require alternative providers, appropriate telehealth, transport, bridge payment, or regional capacity deployment, with an express judicial route for lawful relief.
Existing EMTALA requires specified emergency screening, stabilization, and appropriate transfer obligations. It is not itself a general elimination of emergency bills. The Act's no-charge rule is therefore a distinct financing and patient-liability protection, covering both participating and nonparticipating qualified providers for covered transactions. Previously incurred lawful medical debt is not automatically canceled. [S04]
Eligibility
Full coverage depends on ordinary United States residence and a qualifying status under title II. Citizens, nationals, lawful permanent residents, granted asylees, admitted refugees, and specified other durable lawful categories qualify without an income test. Certain longer-term lawful workers and dependents qualify under the statute's express rule. A pending asylum claim, employment authorization, temporary protected status, or parole alone does not necessarily establish full AHP eligibility, and the text does not equate all excluded persons with undocumented persons.
Limited coverage includes emergency stabilization and transport, specified maternity and public-health services, and necessary life-preserving follow-up. The express dialysis provision prevents a payment rule that would cover only predictable emergency deterioration while excluding the maintenance treatment that prevents it. Event-related disaster and exposure protections and the specified living-donor episode can extend beyond ordinary full eligibility. These are deliberate exceptions, not a general grant of unrestricted benefits. States may finance additional lawful benefits separately.
Financing shares
Let C equal consolidated net program expenditure; S accepted State contributions; Q the applied individual solidarity-revenue allocation; and F ordinary federal financing. Section 702 provides C = S + Q + F, with S no greater than 22 percent of C, Q no greater than 3 percent of C, and F no less than 75 percent of C. The standard compact share is 22 percent of allocable costs, with federal-only obligations and specified relief treated separately. Q is itself federal tax revenue, so total federal financing is C minus S, ordinarily at least 78 percent where the State contribution is 22 percent.
The three-percent figure is an expenditure allocation, not an assurance that a uniform three-percent tax pays for the program. The actual individual schedule is progressive and uncapped. Receipts beyond the current allocation remain in reserve; insufficient receipts increase federal financing. State refusal also increases federal financing. The Act uses voluntary compacts and federal administration rather than an invented state-specific punitive federal tax. It cannot simultaneously guarantee optional State participation and guaranteed receipt of a national 22-percent State share.
Revenue and taxpayer safeguards
The ordinary individual schedule has marginal rates of zero, one, two, three, four, and five percent; the five-percent bracket remains open-ended. Additional marginal surtaxes of two, four, and six percent apply above the specified $100 million, $250 million, and $500 million thresholds. Joint-return thresholds for the ordinary tax are doubled; the ultra-high-income thresholds apply per return, with a separate married-filing-separately rule. The top additional marginal rate is eleven percent on the highest bracket, not on the entire return's income.
The employer contribution applies to aggregate covered payroll above an indexed $2 million exclusion, at four percent through $10 million and eight percent above that amount. Related employers share thresholds. A corporate contribution applies to the specified taxable-income brackets. Titles VIII and XXIX define collection, attribution, deposit, reconciliation, notice, refund, appeal, and anti-avoidance procedures. Treasury cannot invent higher rates or a wealth tax by regulation. No tax payment is an eligibility condition.
Mandatory financing
Section 701 permanently appropriates the amounts necessary for benefits and associated administration, enforcement, workforce, infrastructure, and oversight. Section 704 expressly addresses sequestration, statutory PAYGO, impoundment, and essential operations during annual appropriations lapses. The existence of a permanent appropriation does not establish economic affordability or budget neutrality. Express treatment of automatic reductions matters because federal budget law contains specific exemption rules; mandatory classification alone is not a substitute for the proposed language. [S05]
A subsequent Congress can amend or repeal the law. A reserve of Treasury obligations does not create new national resources or an independent guarantee against sovereign default. The Act does not itself increase the debt limit. These limitations are preserved in the statutory text rather than hidden in an explanatory disclaimer.
Title I. ESTABLISHMENT, DEFINITIONS, AND SCIENTIFIC GOVERNANCE
Sections 101-106. Creates the public financing system, individual entitlement, federal fallback, accountable appointments, scientific council, actuary, and patient assistance. Public financing does not automatically transfer private facility ownership or conscript professionals.
Title II. ELIGIBILITY, RESIDENCY, ENROLLMENT, AND LIMITED COVERAGE
Sections 201-206. Defines ordinary residence and qualifying status, automatic and provisional enrollment, limited benefits, portability, and information protections. Eligibility follows law rather than the speed of a database or possession of a new card.
Title III. COMPREHENSIVE BENEFITS AND PATIENT FINANCIAL PROTECTION
Sections 301-308. Establishes the comprehensive clinical package, dental and assistive benefits, long-term supports, emergency transport, and patient-charge prohibition. It preserves clinical review while preventing financial liability for a covered transaction.
Title IV. TIMELY ACCESS, CLINICAL STANDARDS, AND APPEALS
Sections 401-404. Sets access deadlines, prior-authorization limits, independent review, continuing care pending appeal, and civil-rights protections. A local budget or failed appointment system does not discharge the national access duty.
Title V. PROVIDERS, INSTITUTIONAL PAYMENT, AND FAIR COMPENSATION
Sections 501-506. Combines professional payment standards, institutional operating budgets, compensation floors, safe staffing, and prompt payment. Readiness support permits necessary low-volume capacity without creating incentives for unnecessary admissions.
Title VI. PRESCRIPTION DRUGS, MEDICAL PRODUCTS, AND SUPPLY SECURITY
Sections 601-605. Grants medical-product negotiation and ceiling authority, a defined process, supply alternatives, compensated government patent use, pharmacy-intermediary rules, and public-interest manufacturing. Patient continuity remains distinct from negotiating leverage.
Title VII. AMERICAN HEALTH TRUST FUND AND PERMANENT FINANCING
Sections 701-705. Establishes permanent appropriations, the financing identity, actual transfers, a liquidity reserve, anti-cut protections, and actuarial reporting. Spending authority is not represented as proof that revenue is sufficient.
Title VIII. PROGRESSIVE HEALTH REVENUE AND TAX ADMINISTRATION
Sections 801-806. Sets individual, ultra-high-income, employer, and corporate contributions; defines the income base; regulates attribution; and provides collection and taxpayer rights. Rates and thresholds are legislative choices, not powers delegated without limits.
Title IX. FEDERAL-STATE COMPACTS AND TERRITORIAL AND TRIBAL ARRANGEMENTS
Sections 901-904. Provides voluntary financing compacts, federal administration when a State declines, specified fiscal relief, federal-only arrangements, and lawful supplemental State benefits. Coverage is not conditioned on State acceptance.
Title X. INSURANCE TRANSITION AND CONSOLIDATION OF EXISTING PROGRAMS
Sections 1001-1006. Replaces duplicative primary insurance while protecting runoff, unearned premiums, accrued claims, retained specialized programs, employer obligations, and liability-payer coordination. Distinct residual coverage is not abolished by implication.
Title XI. ADMINISTRATIVE SIMPLIFICATION, CONTRACTING, AND COMPETITION
Sections 1101-1104. Requires administrative simplification, lawful contract changes, ownership transparency, and procurement controls. Necessary clinical records, safety, scheduling, and audit functions remain even where payer-specific billing work ends.
Title XII. FACILITIES, RURAL CAPACITY, AND MODERNIZATION
Sections 1201-1205. Creates mandatory capital support for renovation, new capacity, rural access, modern equipment, and reliable operations. Awards require need, staffing, and operating plans rather than a construction announcement alone.
Title XIII. WORKFORCE EDUCATION AND MEDICAL SCIENCE
Sections 1301-1305. Funds education, supervised residency expansion, loan and service support, credential pathways, and independent research. Scientific review and public access coexist with ethics, consent, safety, and professional qualification requirements.
Title XIV. DISPLACED-WORKER ADJUSTMENT AND REEMPLOYMENT
Sections 1401-1404. Creates defined displacement eligibility, income support, alternative wage insurance, training, childcare, relocation, and placement assistance. Earned benefits remain enforceable; unnecessary jobs are not artificially guaranteed.
Title XV. PUBLIC HEALTH, NATURAL DISASTERS, AND ENVIRONMENTAL INJURY
Sections 1501-1505. Funds public-health readiness, disaster clinical response, environmental monitoring, and separate responsible-party recovery. HHS, FEMA, EPA, CDC, and ATSDR have stated coordination roles rather than interchangeable authority.
Title XVI. PRIVACY, DIGITAL INFRASTRUCTURE, AND ARTIFICIAL INTELLIGENCE
Sections 1601-1605. Sets data architecture, prohibited uses, consent and disclosure boundaries, interoperable access, AI protections, and cybersecurity. Optional commercial use cannot be a condition of receiving care.
Title XVII. ENFORCEMENT, REMEDIES, AND PUBLIC ACCOUNTABILITY
Sections 1701-1707. Establishes benefit remedies, private claims, administrative correction, court-imposed punitive penalties, whistleblower protections, independent audit, and public accountability. Different misconduct and clinical-error categories retain different legal elements.
Title XVIII. IMPLEMENTATION, COORDINATION, AND CONSTRUCTION
Sections 1801-1805. Fixes launch milestones, startup authority, legacy operations, treatment continuity, interim-rule limits, preemption, review, and severability. Construction and training schedules do not postpone the statutory full-benefit date.
Title XIX. PRIMARY CARE, PREVENTION, AND COMMUNITY HEALTH DELIVERY
Sections 1901-1912. Details community teams, primary payment, prevention, referral completion, mobile care, nutrition, health literacy, school links, and complex-care coordination. Performance must reflect completed access, not merely referral generation.
Title XX. ORAL HEALTH, VISION, HEARING, AND ASSISTIVE PRODUCTS
Sections 2001-2012. Specifies dental restoration, oral surgery, clinically necessary orthodontics, low-vision services, hearing devices, implants, repairs, rural delivery, and capacity planning. Replacement and maintenance prevent devices from becoming unusable covered benefits.
Title XXI. MATERNAL, REPRODUCTIVE, CHILD, AND FAMILY HEALTH
Sections 2101-2112. Adds maternal networks, obstetric readiness, midwifery, fertility, newborn and pediatric continuity, adolescent services, foster-care transitions, violence response, menopause care, and outcome review. Independent privacy and consent rules remain applicable.
Title XXII. BEHAVIORAL HEALTH, ADDICTION, AND CRISIS SYSTEMS
Sections 2201-2212. Builds behavioral networks, mobile crisis and stabilization, post-crisis follow-up, addiction treatment, harm reduction, intensive and community services, peer support, confidentiality, and capacity measures. A crisis encounter is not treated as complete follow-up care.
Title XXIII. DISABILITY, AGING, AND COMMUNITY LIVING
Sections 2301-2312. Makes community-living benefits operational through assessments, personal plans, self-direction, caregiver support, transition from institutions, home modifications, direct-support continuity, resident rights, dementia services, and safeguarding.
Title XXIV. COMPLEX SPECIALTY CARE, CHRONIC CONDITIONS, AND PALLIATIVE SERVICES
Sections 2401-2412. Coordinates specialty networks, cancer, rare diseases, transplant and donor episodes, kidney disease, chronic conditions, pain, palliative services, second opinions, and clinically meaningful outcomes. Necessary maintenance is not denied simply because cure is unavailable.
Title XXV. EMERGENCY MEDICAL SERVICES, TRAUMA, AND TRANSPORTATION
Sections 2501-2512. Finances emergency readiness, ground and air transport, safe treatment without transport, nonemergency access, transfer coordination, trauma, pediatric capability, communications, and the emergency workforce. Transport bills cannot be shifted back to covered patients.
Title XXVI. FACILITY DELIVERY, RURAL OPERATIONS, AND CAPITAL ASSURANCE
Sections 2601-2612. Adds facility inventories, award criteria, construction milestones, rural operating commitments, procurement, resilience, lifecycle technology costs, public-use covenants, closure notice, and audit. Capital and operating payments must not duplicate each other.
Title XXVII. WORKFORCE DELIVERY, PROFESSIONAL SUPPORT, AND EMPLOYMENT TRANSITION
Sections 2701-2712. Implements workforce planning, compensation pass-through, specialty adjustments, training quality, service-commitment protections, credentialing, safe work, displacement decisions, and reemployment measurement. Grants do not replace professional licensing.
Title XXVIII. MEDICAL PRODUCTS, BIOMEDICAL RESEARCH, AND SUPPLY IMPLEMENTATION
Sections 2801-2812. Details price dockets, evidence submissions, review, supply continuity, reserves, manufacturing, patent compensation, pharmacies, clinical research, trial access, licensing conditions, and scientific integrity. Regulatory shortcuts cannot substitute for safety evidence.
Title XXIX. REVENUE COLLECTION, TREASURY OPERATIONS, AND STATE ACCOUNTING
Sections 2901-2912. Provides tax-receipt ledgers, withholding, employer aggregation, self-employment and trust coordination, corporate collection, taxpayer rights, foreign and territorial coordination, State allocations, cash controls, and transparent forecasts.
Title XXX. PAYMENT INTEGRITY, OWNERSHIP, INSURANCE RUNOFF, AND COMPETITION
Sections 3001-3012. Specifies claims validation, global-budget reconciliation, ownership and related-party disclosure, clinical independence, transaction notice, insurance runoff, premium refunds, collective-bargaining coordination, liability recovery, audit, and administrative measurement.
Title XXXI. PUBLIC HEALTH, ENVIRONMENTAL INJURY, AND DISASTER RECOVERY
Sections 3101-3112. Adds laboratory, infectious-disease, occupational and environmental services; exposure-zone care; long-term monitoring; evacuation; supply; responsible-party recovery; public communication; and after-action review. Care does not wait for liability adjudication.
Title XXXII. DIGITAL CARE, HEALTH DATA, ARTIFICIAL INTELLIGENCE, AND CYBERSECURITY
Sections 3201-3212. Implements federated records, identity correction, patient access, interoperability, telehealth, high-impact AI registration, human review, commercial-use limits, cyber assistance, incident response, cloud exit, and independent oversight.
Title XXXIII. CIVIL RIGHTS, CLINICAL ACCOUNTABILITY, AND REMEDIES
Sections 3301-3312. Adds accessible notices, independent patient advocacy, nondiscrimination, consent, conscience coordination, clinical accountability, express State remedial consent, private-action timing, whistleblower process, and systemic relief subject to ordinary jurisdictional rules.
Title XXXIV. TRIBAL, TERRITORIAL, VETERAN, AND OTHER SPECIAL DELIVERY ARRANGEMENTS
Sections 3401-3412. Coordinates Tribal and urban Indian care, territories, granted-status and limited coverage, custody, medical respite, veterans and military services, education-linked care, mobile residents, foreign referral, reentry, and federal-only accounting.
Sections 3501-3512. Turns the six-month launch into workstreams, inventories, early-benefit conversion, readiness tests, parallel operations, continuity, outage payment, assistance, integrity controls, procurement exits, dashboards, and independent long-term evaluation.
Title XXXVI. TECHNICAL COORDINATION, SUPPLEMENTAL RULES, AND CONTINUING EFFECT
Sections 3601-3612. Coordinates Medicare premiums, Medicaid residual rights, marketplace credits, employer penalties, ERISA and insurance law, tax-favored health accounts, records, existing product discounts, public clinician pay, appropriation accounting, deadlines, and pending proceedings.
4. Constitutional and legal analysis
Federal authority and State arrangements
The statute invokes federal taxing, spending, interstate-commerce, procurement, and necessary-and-proper authorities for a national payment system and related regulation. Regulation of transactions, spending conditions, and benefit obligations should be analyzed separately rather than defended through a single unlimited theory of federal power. A national public payer does not itself require government acquisition of every hospital or professional practice.
NFIB v. Sebelius held the threatened loss of existing Medicaid funding impermissibly coercive in the circumstances before the Court. The Act instead conditions new cooperative arrangements on a disclosed contribution and administration agreement, preserves federal delivery when a State declines, and does not threaten unrelated existing aid. That design addresses a specific coercion concern; it is not a guarantee that every compact condition or application will survive challenge. [S01]
Section 3309 supplies express remedial consent for participating States, limited to specified accepted obligations and nonpunitive relief. Congress's power to authorize a private damages action against a State is not assumed merely because the subject is healthcare. The federal benefit obligation and federal fallback remain important where State immunity or a compact dispute prevents a particular remedy.
Taxes and income realization
The individual taxes use a defined income base principally comprising realized income and established attribution of pass-through income. Moore v. United States upheld the particular attribution tax at issue on the corporation's realized income; it did not decide the constitutionality of every tax on unrealized appreciation or wealth. The Act therefore does not delegate mark-to-market or wealth-tax creation to Treasury. The $100 million surtax is not a tax on holding assets worth that amount. [S02]
The income base's add-back for interest on post-enactment obligations and its treatment of foreign income, trusts, and public employers require distributional and treaty analysis. Group aggregation prevents artificial threshold splitting but can also affect businesses that previously structured separate operations for non-tax reasons. Regulations must remain within the stated base, provide notice, and preserve ordinary tax review. Existing Internal Revenue Code definitions are incorporated rather than replaced with an undefined general instruction to tax ability to pay. [S25]
Administration, scientific governance, and judicial review
Scientists and clinicians provide evidence review, professional standards, grant evaluation, and clinical advice. Binding governmental authority remains with lawfully appointed and supervised officials. The bill does not give a private professional association final unreviewable power to tax, appropriate, exclude a provider, or deny an entitlement.
Loper Bright Enterprises v. Raimondo requires courts to exercise independent judgment on statutory meaning rather than defer under the former Chevron framework. Accordingly, the bill specifies benefit classes, financing rules, rates, penalties, and key deadlines in enacted text. Agency discretion remains necessary for clinical evidence, procurement, and operating details, but it is bounded by standards, published reasons, and review. [S03]
Pricing, patents, contracts, and private property
Public acquisition prices are not a declaration that intellectual property has no value. Section 603 invokes compensated government patent use and preserves the statutory Court of Federal Claims remedy. Existing 28 U.S.C. 1498 supplies a patent compensation mechanism; it does not itself deliver manufacturing know-how, trained staff, or regulatory approval. The bill separately addresses manufacturing, supply agreements, imports, safety review, and limited regulatory reliance. [S06]
An aggressive price ceiling can affect supply, investment incentives, launch decisions, and the return to innovation. The record for a ceiling must therefore address reasonable returns, clinical value, alternative supply, and access consequences. The statute allows documented temporary bridge purchasing rather than using interruption of essential treatment as negotiating pressure. Those safeguards do not prove that every price will be efficient or every manufacturer will remain in the market.
Insurance restrictions operate prospectively with runoff, claims protection, and permitted supplemental markets. Contract termination costs, vested obligations, and protected property cannot simply be labeled savings. Hospital global budgets also require an adequate administrative record, review, and adjustments for mandatory compensation and unforeseen clinical demand. Whether a particular rate, condition, acquisition, or termination creates a constitutional or contractual remedy will remain fact-dependent.
Patient rights, nondiscrimination, and clinical law
The Act makes an individual benefit enforceable and separates financing disputes from clinical urgency. It prohibits discriminatory denials and relies on individualized evidence rather than a disability label or generalized quality-of-life assumption. Olmstead v. L.C. interprets disability integration requirements in its legal context; it is not itself the bill's proposed unlimited financial entitlement to every home service. The Act expressly creates its more specific community-care obligations and payment rules. [S07]
The reproductive and gender-related care provisions make substantial substantive policy choices and expressly address conflicting restrictions. They present significant preemption, federal-power, statutory-conscience, and religious-exercise litigation questions. Preserving individual conscientious-objection protections while assuring timely alternative care requires operational capacity and precise application. No statement in this report treats the entire field as legally settled or predicts a final judicial result.
Tax information remains separately protected under Internal Revenue Code section 6103. [S26]
Privacy protections preserve stronger applicable confidentiality requirements, distinguish optional research from care, and prohibit automated final adverse clinical determinations. Substance-use records retain applicable additional protections. HHS's Part 2 framework is a relevant coordination source, not a substitute for the Act's independent protections. [S08]
Enforcement and penalties
Restitution, benefit payment, administrative correction, professional discipline, punitive civil penalties, and criminal prosecution are distinct mechanisms with different elements and forums. SEC v. Jarkesy addresses jury-trial rights in the enforcement setting before the Court. The bill routes its punitive civil penalties to federal district court and preserves applicable jury rights, rather than relying on an agency label to eliminate them. [S09]
The Act specifies preponderance standards for civil matters and preserves the elements and beyond-reasonable-doubt burden for criminal offenses. Ordinary clinical disagreement is not newly criminalized. Aggregate billing-line multiplication is restricted, good-faith error can be corrected, and public enforcement may consider the need to preserve essential clinical access without excusing proven fraud.
5. Fiscal note and reproducible stress scenarios
What is known and what is not scored
CMS reports $5.3 trillion in United States national health expenditure for 2024, representing 18.0 percent of GDP. That historical all-payer figure is useful only as a scale reference. It is not the projected cost of this Act, not the amount of new federal spending, and not a measure of federal financing currently available for transfer. The bill's scope, prices, compensation, utilization, investment, and eligibility differ from that historical aggregate. [S10]
CBO's single-payer methodology identifies provider payment, administrative expense, use of services, benefits, and capacity as important cost drivers. Its illustrative systems are not a score of this Act. A formal score would need tax microdata, provider cost and wage distributions, service-use assumptions, State participation, residual-program obligations, implementation expenditure, and behavior by employers, clinicians, manufacturers, and patients. [S11]
This report supplies arithmetic scenarios rather than fabricated revenue estimates. The scenarios are not assigned probabilities and are not claims that the legislation saves money. They do not estimate interest costs, macroeconomic feedback, household disposable-income changes, or the difference from a current-law baseline. Those omissions prevent a net-deficit conclusion.
Explicit recurring funding floors
Explicit recurring funding floors
| Account | Annual first-five-year floor | Authority |
| Facilities and technology | $200 billion | Section 1201 |
| Education and training | $60 billion | Section 1301 |
| Additional research | $40 billion | Section 1305 |
| Displaced-worker adjustment | $25 billion | Section 1404 |
| Public health and readiness | $30 billion | Section 1501 |
| Tax administration | $5 billion | Section 806 |
| Total | $360 billion | No duplicate counting |
The first-five-year account floors total $360 billion per program year in 2026 dollars. The five-year arithmetic total is $1.8 trillion of minimum funding authority before indexation in nominal budgets. Section 701 also supplies necessary additional amounts for statutory obligations. Floors are not a direction to waste money on unqualified projects and are not necessarily the cash outlays in the year authority is made available. The $150 billion startup appropriation is separate, with additional necessary transition funding expressly allowed.
After the fifth program year, the capital floor is the greater of indexed $100 billion or two percent of the specified prior clinical operating base; the education floor is indexed $40 billion; research remains indexed $40 billion; public health remains indexed $30 billion; tax administration has its specified continuing floor; and earned worker benefits remain payable. Those changes must be incorporated in a formal annual score rather than extrapolating all first-five-year floors indefinitely.
The illustrative first-full-program-year consolidated expenditure assumptions are $5.3 trillion, $6.2 trillion, and $7.2 trillion, all expressed as constant 2026 dollars, with subsequent real annual growth of 0.5 percent, 1.5 percent, and 2.5 percent respectively. The resemblance of the first assumption to the historical CMS dollar figure is solely a scale choice, not an inflation conversion or forecast. Each assumed total already contains operating care, administration, the statutory grant accounts, and other program obligations; those accounts are not added again.
For a window of n full program years, the table computes 0.15 + C1 multiplied by the sum of (1 + g) to the power t, for t from zero through n minus one. Amounts are trillions of constant 2026 dollars. The 0.15 represents one assumed startup outlay equal to the initial startup appropriation; actual startup outlays could occur differently and could exceed that amount. The one-year column includes that startup assumption for comparability rather than representing the first fiscal year after enactment.
Scenario inputs and formula
| Assumption set | 1 year | 5 years | 10 years | 30 years |
| Scenario A: C1=5.3; g=0.5% | 5.450 | 26.916 | 54.359 | 171.234 |
| Scenario B: C1=6.2; g=1.5% | 6.350 | 32.094 | 66.507 | 232.890 |
| Scenario C: C1=7.2; g=2.5% | 7.350 | 37.996 | 80.814 | 316.249 |
These are aggregate spending sensitivities, not three actuarial models. They do not resolve how utilization, wages, price reductions, capital grants, and shortages interact. A high compensation standard, comprehensive long-term supports, additional utilization after removal of charges, and rapid capacity investment can offset or exceed reductions in billing costs and product prices. Conversely, improved prevention or purchasing may change later spending, but this report does not book uncertain future savings as available cash.
Federal and State financing sensitivity
Federal and State financing sensitivity
| Effective State share | State S | Solidarity Q | Ordinary federal F | All federal |
| 22% | 1.364 | 0.186 | 4.650 | 4.836 |
| 11% | 0.682 | 0.186 | 5.332 | 5.518 |
| 0% | 0.000 | 0.186 | 6.014 | 6.200 |
Amounts in trillions of constant 2026 dollars; assumed C = 6.2 and Q = 3 percent of C. This illustration excludes separate startup spending.
For the central $6.2 trillion annual expenditure assumption, a full 22-percent State contribution equals $1.364 trillion; a fully funded three-percent solidarity allocation equals $0.186 trillion; and ordinary federal financing equals $4.650 trillion. Aggregate federal financing, including the solidarity allocation, is $4.836 trillion. These are formula outputs, not forecasts of tax collections or State acceptance. Federal-only categories and relief would lower the effective State share further.
Let E be the verified existing federal funding actually transferred, T the new employer and corporate receipts, Q the applied individual receipts, and S the actual State receipts. The remaining general-revenue requirement is C minus S minus Q minus E minus T, with credits and recoveries accounted for once. Neither E nor T is estimated here. This leaves the fiscal gap visible rather than describing the appropriation itself as a source of tax revenue.
Distribution and incidence
An official distributional analysis should show households by income, filing status, age, disability, geography, immigration eligibility, and prior coverage; employers by payroll and discontinued benefit cost; clinicians by specialty and employment form; and States by tax capacity and accepted obligations. A statutory employer tax is not necessarily borne only by business owners over time. Likewise, elimination of a premium does not establish a family's net gain without comparing taxes, prior employer compensation, and benefits. No household- or employer-specific savings claim is made in this report.
6. Implementation roadmap
6. Implementation roadmap
| Period | Responsible bodies | Required execution |
| Days 0-90 | HHS, Treasury, Labor, OPM, retained federal programs | Assign officials; inventory records and contracts; provisional enrollment; launch worker support; publish payment and tax guidance; activate the prescribed day-90 benefits. |
| Months 3-6 | Authority and clinical partners | Test complete patient and payment pathways; contract fallback capacity; supply continuation medicines; establish appeals and assistance; commence every full benefit on day 180. |
| Months 6-12 | Regional operations, Treasury, inspectors | Stabilize claims; reconcile advances; correct enrollment; certify State allocations; audit data access; award staffed capital projects; report actual access failures and responses. |
| Year 2 | HHS, education bodies, States and Tribes | Expand supervised training and community capacity; complete priority renovation; reduce legacy systems only after safe migration; evaluate workforce compensation pass-through and worker placement. |
| Years 3-5 | Facilities and workforce offices; GAO | Complete phased construction against approved milestones; verify staffing and public-use covenants; review drug supply, outcomes, tax collections, and employer and State responses. |
| Beyond year 5 | Congress, GAO, actuary, accountable agencies | Perform recurrent independent reviews; model 10- and 30-year finance; renew necessary rural operating commitments; propose statutory changes without an automatic benefit sunset. |
Operational failure points and responses
The highest immediate risks are inaccurate enrollment matching, disrupted prescriptions, unavailable dentists or specialists, late hospital payroll funding, untested claims conversion, and confusion about which payer remains responsible. The bill's response is provisional coverage and payment, clinical continuity, responsible escalation teams, legacy processing where necessary, independent appeals, and funded alternative capacity. These mechanisms reduce exposure; they do not make a six-month national conversion routine.
Longer-term risks include cost growth above revenue, State nonparticipation, workforce training bottlenecks, hospital projects lacking staff, manufacturer exit, vendor lock-in, and excessive reporting burdens. Controls include published forecasts, operating commitments before capital awards, supervised training expansion, supply diversification, interoperable exports, and a requirement to measure both administrative cost and actual clinical access. HRSA's workforce projections underscore the need to distinguish financing demand from the supply of qualified personnel; the Act's numerical training goals are proposed targets, not verified evidence that all slots can immediately be filled. [S12]
The same fiscal report must separate budget authority, outlays, tax receipts, transfers, loans or advances, reserves, and recoveries. A public dashboard must distinguish an appointment offered from treatment actually delivered, a grant awarded from an operating facility, and an algorithmic fraud flag from a proven recovery. These are accounting and performance safeguards, not grounds to suspend an entitlement.
7. Stakeholder and compliance analysis
Patients gain an enforceable public benefit and protection from covered-service bills but must still distinguish covered clinical care from genuinely noncovered services. Their principal implementation risk is a gap between legal entitlement and local capacity. Independent assistance, expedited review, disability accommodation, and alternative care arrangements address that gap without promising access to every preferred clinician at every requested time.
Clinicians and direct-care workers receive proposed compensation floors, funded staffing and education, and reduced payer fragmentation. Providers also face participation conditions, common reporting, public payment review, and limits on patient charging. Independent practices are not promised guaranteed profits, and the public system must fund efficient operating costs rather than assume every payment reduction is administrative waste.
Hospitals and community providers receive prospective operating payments and capital support, with special readiness funding for necessary low-volume capacity. They must document related-party transactions, maintain staffing, comply with public-use commitments, and disclose closure plans. Owners and lenders may face changes in valuation and contractual economics; claims and lawful security interests require individual legal treatment rather than categorical cancellation.
Primary insurers, benefit administrators, collection vendors, and related businesses face contraction of duplicative functions. Permitted supplemental products and ministerial service contracts remain, but no entity has a guarantee of replacement public business. Employees have time-limited income and training protections, claims procedures, and placement support. Earned pension, leave, and severance rights are preserved independently.
Manufacturers and distributors face broader public price negotiation, ceilings, cost disclosure, supply obligations, and possible alternative procurement. The public-interest research and manufacturing accounts coexist with intellectual-property compensation and safety law. Assessment should examine both purchasing savings and possible effects on launches, shortages, and research investment rather than assume only one direction of effect.
States choose whether to accept defined financing and administration duties. Participation creates fiscal commitments, data and service requirements, and specified remedial consent. Nonparticipation transfers administration and replacement financing to the federal government; residents remain covered. Tribal sovereignty, retained veterans' services, military readiness functions, and residual territorial tax arrangements require distinct agreements and cannot be treated as ordinary State administration.
8. Comparative and existing-program lessons
Maryland's all-payer hospital model provides a domestic example of hospital payment reform with population and quality constraints. It does not establish that identical results would occur under a national system with different benefits, wages, taxes, and institutions. The Act uses global operating budgets, separate capital, and readiness support, while creating its own adjustment and patient-access duties. National transferability therefore requires separate modeling and implementation evidence. [S13]
Existing federal disaster and medical-response arrangements identify different roles for clinical response, logistics, and environmental assessment. The Act builds on that division rather than assigning clinical decisions to FEMA or all environmental healthcare decisions to EPA. It creates its own benefits and funding while preserving each agency's independent legal authority. [S14] [S15]
The polluter-recovery provision is a separately enacted proposed cause of action with responsibility, causation, allocation, defenses, and judicial process. It should not be described as proof that existing CERCLA automatically recovers every person's healthcare costs in every exposure event. Existing CERCLA liability is a relevant coordination framework, but the bill's additional remedy must stand on its own text. Treatment proceeds before allocation litigation. [S16]
The data architecture is federated rather than a requirement to copy all clinical content into a single repository. Interoperability and information-blocking rules supply useful implementation context; NIST's AI Risk Management Framework supplies a voluntary risk-governance reference. Neither substitutes for the Act's legally binding consent, access, security, and human-review requirements. [S17] [S18]
9. Public explanation and frequently asked questions
Does the six-month deadline include dental, vision, hearing, and ambulances?
Yes. Full covered services begin on day 180. Emergency transport and specified other services begin in the early phase prescribed for day 90. The bill requires interim arrangements while facilities, workforce, and technology programs mature; it does not claim that every new building and clinician can be produced in six months.
Does everyone receive the same benefits?
Full eligible residents receive the comprehensive package without an income or employment test. Excluded nonresident or immigration categories receive the specified limited protections, with explicit event-related exceptions. A particular treatment still must satisfy the applicable clinical coverage standard. States may fund lawful additions, and separate retained federal rights are preserved.
How does the bill coordinate existing tax and insurance rules?
Title XXXVI supplies explicit rules for marketplace credits, employer assessments, health savings accounts, ERISA, insurance-law interaction, and Medicaid residual obligations. Those proposed rules should be compared to the respective current statutes at introduction, rather than assuming that a broad consolidation clause updates every legal consequence automatically. [S19] [S20] [S21] [S22] [S23] [S27]
Are doctors and hospitals government-owned?
Not necessarily. Public, nonprofit, cooperative, and private ownership may continue. The public system finances covered care and imposes conditions on payment and patient charging. Individual clinicians are not compelled to work. Capital acquisition must use consent or a separately lawful process with applicable compensation.
Is the system financed by a three-percent tax alone?
No. The three-percent solidarity allocation is distinct from the progressive tax schedule and from the ordinary federal and State shares. Existing public funding, employer and corporate taxes, individual taxes, accepted State contributions, recoveries, and residual general revenue are separate components. The report does not establish that the specified new taxes fully finance the promised expenditure.
Can ordinary annual budget negotiations stop benefits?
The Act's permanent appropriation funds covered obligations and necessary administration without annual discretionary approval, and its express anti-cut provisions address specified automatic reductions. A future Congress can nevertheless change the law. The statute also does not remove national debt, borrowing, or sovereign-payment constraints.
What happens to people working in insurance administration?
Workers meeting the displacement and filing requirements may obtain income support, alternative wage insurance, training, childcare and relocation assistance, and priority consideration for qualified openings. The Act does not promise that every former job or salary survives. It protects people through defined benefits rather than requiring retention of functions that the statute eliminates.
Does scientific leadership mean elected government has no oversight?
No. Expert review informs standards and research, while lawfully appointed officials remain accountable for statutory decisions and expenditure. Evidence, conflicts, reasons for departures, audits, hearings, and judicial review remain part of the system. No expert body receives unreviewable legislative power.
Source register
The following authorities were reviewed for the stated limited purposes. Statutory provisions and decisions are primary legal authorities; agency materials describe their own programs or data. Web materials may be updated after preparation. Source identifiers are used throughout the report to separate existing law and evidence from proposed legislative choices. No source is represented as endorsing or scoring this bill.
[S01] National Federation of Independent Business v. Sebelius, 567 U.S. 519 (2012). Spending conditions and Medicaid coercion.
https://www.law.cornell.edu/supremecourt/text/11-393
[S02] Moore v. United States, 602 U.S. 572 (2024). Limited holding on taxation of attributed realized income.
https://www.supremecourt.gov/opinions/23pdf/22-800_jg6o.pdf
[S03] Loper Bright Enterprises v. Raimondo, 603 U.S. 369 (2024). Independent judicial determination of statutory meaning.
https://www.law.cornell.edu/supremecourt/text/22-451
[S04] 42 U.S.C. 1395dd. Emergency medical screening, stabilization, and transfer requirements.
https://www.law.cornell.edu/uscode/text/42/1395dd
[S05] 2 U.S.C. 905. Statutory sequestration exemptions.
https://www.law.cornell.edu/uscode/text/2/905
[S06] 28 U.S.C. 1498. Government patent use and compensation remedy.
https://www.law.cornell.edu/uscode/text/28/1498
[S07] Olmstead v. L.C., 527 U.S. 581 (1999). Disability integration holding and qualifications.
https://www.law.cornell.edu/supct/html/98-536.ZS.html
[S08] HHS, Fact Sheet: 42 CFR Part 2 Final Rule. Substance-use treatment record protections.
https://www.hhs.gov/hipaa/for-professionals/regulatory-initiatives/fact-sheet-42-cfr-part-2-final-rule/index.html
[S09] SEC v. Jarkesy, 603 U.S. 109 (2024). Jury rights in the civil-penalty enforcement setting.
https://www.law.cornell.edu/supremecourt/text/22-859
[S10] CMS, National Health Expenditure Data: NHE Fact Sheet. Historical 2024 national expenditure, not a score of the Act.
https://www.cms.gov/data-research/statistics-trends-and-reports/national-health-expenditure-data/nhe-fact-sheet
[S11] CBO, How CBO Analyzes the Costs of Proposals for Single-Payer Health Care Systems That Are Based on Medicare's Fee-for-Service Program, Working Paper 2020-08.
https://www.cbo.gov/publication/56811
[S12] HRSA, Projecting Health Workforce Supply and Demand. Occupation and geographic planning context.
https://bhw.hrsa.gov/data-research/projecting-health-workforce-supply-demand
[S13] CMS Innovation Center, Maryland All-Payer Model. Domestic hospital-payment demonstration.
https://www.cms.gov/priorities/innovation/innovation-models/maryland-all-payer-model
[S14] ASPR, National Disaster Medical System. Federal medical-response organization.
https://aspr.hhs.gov/NDMS/Pages/default.aspx
[S15] EPA, Emergency Response. Environmental-response role and programs.
https://www.epa.gov/emergency-response
[S16] 42 U.S.C. 9607. CERCLA responsible-party liability and statutory conditions.
https://www.law.cornell.edu/uscode/text/42/9607
[S17] HealthIT.gov, Information Blocking. Federal interoperability context.
https://healthit.gov/information-blocking/
[S18] NIST, AI Risk Management Framework. Voluntary risk-management reference.
https://www.nist.gov/itl/ai-risk-management-framework
[S19] 26 U.S.C. 36B. Marketplace premium credit and minimum-essential-coverage coordination.
https://www.law.cornell.edu/uscode/text/26/36B
[S20] 26 U.S.C. 223. Health savings accounts, eligible individuals, and qualified distributions.
https://www.law.cornell.edu/uscode/text/26/223
[S21] 26 U.S.C. 4980H. Employer shared-responsibility assessments.
https://www.law.cornell.edu/uscode/text/26/4980H
[S22] 15 U.S.C. 1012. Federal laws specifically relating to the business of insurance.
https://www.law.cornell.edu/uscode/text/15/1012
[S23] 29 U.S.C. 1144 and 29 U.S.C. 1161. ERISA preemption and continuation-coverage context.
https://www.law.cornell.edu/uscode/text/29/1144
[S24] NIH, Public Access. Current policy materials on access to funded research publications.
https://grants.nih.gov/policy-and-compliance/policy-topics/public-access
[S25] 26 U.S.C. 62, 52, and 414. Adjusted gross income and tax aggregation provisions.
https://www.law.cornell.edu/uscode/text/26/62
[S26] 26 U.S.C. 6103. Tax-return confidentiality and authorized disclosures.
https://www.law.cornell.edu/uscode/text/26/6103
[S27] 42 U.S.C. 1396d. Medicaid services, EPSDT, and institutional-payment exclusions.
https://www.law.cornell.edu/uscode/text/42/1396d
10. Quality-Check
Consistency: The expanded text preserves AHS as the system, AHP as the coverage program, and the Fund as the financing account. The 36 titles and 314 numbered sections have unique identifiers. Supplemental titles expressly operate with the core entitlement and financing provisions; the table of contents and internal section targets are checked against the assembled text. External statutory references are distinguished from internal section numbers.
Authority: The draft specifies federal payment and tax powers, voluntary cooperative arrangements, agency roles, judicial forums, and limited special-program coordination. It does not assume that States, private associations, or contractors can exercise federal power without lawful authorization. Precise introduction-stage integration with all affected federal and State laws remains necessary.
Constitutional risk: Material issues remain concerning State conditions and remedies, price applications, insurance restrictions, income-base choices, reproductive and gender-related preemption, conscience rights, privacy, and individual applications of remedies. Protective drafting is not a prediction that courts will uphold every provision. The source review is not a comprehensive legal citator certificate.
Enforceability: Duties identify administrators, timing, payment routes, notice, appeals, evidentiary rules, correction, and relief. There are express remedies for wrongful benefit withholding, unlawful patient billing, specified privacy violations, compensation underpayment, and retaliation. Courts are not authorized to conscript individual clinicians or disregard statutory limits on jurisdiction.
Fiscal assumptions: Tax rates and grant floors are specified; actual revenue, net federal cost, borrowing, distribution, and behavioral responses are not scored. The 1-, 5-, 10-, and 30-year calculations are transparent stress arithmetic. Transfers, savings, reserves, appropriations, and receipts are not double-counted as interchangeable resources.
Implementation risk: Six-month legal commencement remains highly demanding. Legacy processing, provisional payment, clinical continuity, readiness tests, operating advances, alternative providers, and dedicated workforce support are explicit, but their adequacy depends on execution and real capacity. Longer-term construction and professional training cannot be accomplished by legal declaration alone.
Open questions before introduction: Obtain an integrated CBO/JCT and actuarial score; validate wages and rates against provider costs; obtain State participation and fiscal-capacity scenarios; test clinical and payment systems; evaluate supply responses; perform a comprehensive constitutional and statutory review; and complete bill-format and codification review against the law in force at introduction. These tasks refine a complete model bill rather than serving as blank provisions in its text.