One Big, Beautiful Bill (H.R.1) and Its Impact on Health Practitioners

On July 4, 2025, the One Big, Beautiful Bill, officially known as H.R.1, was signed into law by President Donald Trump. This comprehensive legislation brings sweeping changes to tax policy, social programs, defense spending, and immigration enforcement. For health practitioners, these changes can have a direct impact on your financial strategies, tax planning, and the future of your practice.

Highlights of the Bill for Health Practitioners

1. Tax Policy Changes That Impact Your Practice

• Tax Rate Adjustments: While middle-income earners will see tax rate reductions, the top tax rate remains at 37%. If you’re an independent health practitioner or run a private practice, these adjustments could influence your tax planning strategies. Taking advantage of these changes may reduce your practice's overall tax burden.
  
  

• Standard Deduction: The standard deduction from the 2017 Tax Cuts and Jobs Act is made permanent and continues to increase through 2028. This is beneficial for health practitioners who may not itemize their deductions, providing a larger base deduction in your tax filings.
  
  

• Deduction for Senior Citizens: Health professionals who are 65 and older can now claim an additional $6,000 in deductions. If you have senior clients or are planning for retirement yourself, this could impact your future tax strategy and retirement planning.
  
  

• Overtime and Tips Exemption: Health practitioners with employees who receive overtime pay (e.g., nurses or administrative staff) may benefit from tax exemptions on overtime pay and tips. If your practice operates in a way that compensates staff on a variable basis, this exemption could offer financial advantages.

2. Social Program Changes and Their Implications for Health Practices

• Medicaid and SNAP Adjustments: With cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), some of your lower-income patients may face challenges in accessing necessary services. These changes could impact the volume and nature of services provided by your practice. It's important to anticipate potential shifts in the patient base or adjustments to healthcare services as a result.
  
  

• Student Loan Changes: The elimination of Federal Direct subsidized loans for undergraduate students and modifications to Pell Grants may affect the education and training of future healthcare professionals. If you employ young professionals or are involved in hiring recent graduates, this could influence their financial situation and your hiring strategy.

3. Impact on Health and Medical Industry Spending

• Increased Military Spending: While not directly related to healthcare, the bill’s increased funding for military technologies could impact the broader healthcare system, especially as advancements in medical technologies and biotech continue to grow. If your practice uses or plans to invest in high-tech medical equipment, some of these changes may present opportunities for grants or collaboration.
  
  

• Healthcare Innovations: Increased defense spending on drones and other technologies may spur advancements in telemedicine and remote healthcare solutions. This could lead to new business opportunities for health practitioners who are leveraging technology in their practices.

4. Cultural and Public Health Initiatives

• National Garden of American Heroes: This provision doesn’t directly impact health practitioners, but it may foster a broader national discourse on community health and well-being. Understanding the cultural shifts around health initiatives can help position your practice as a key player in your community’s health landscape.

💰 Fiscal Impact and What This Means for Your Practice

The Congressional Budget Office (CBO) estimates that the bill will increase the federal deficit by $3.4 trillion over the next decade. For health practitioners, this could mean future changes in healthcare reimbursement rates, particularly through programs like Medicare and Medicaid. It's crucial to stay informed on these fiscal changes and adjust your practice's budget to prepare for potential shifts in funding for healthcare services.

🏥 What Health Practitioners Need to Consider Going Forward

As a health practitioner, here are the key takeaways from the One Big, Beautiful Bill:

• Review Tax Strategies: Take advantage of the standard deduction and other tax breaks that benefit health professionals. This is an excellent time to consult with your CPA to ensure your practice’s financial health is optimized.
  
  

• Understand Medicaid and SNAP Cuts: These reductions could lead to changes in your patient demographics. If your practice works with lower-income patients, consider revising your pricing models or seeking out additional funding sources, such as grants or private insurance collaborations.
  
  

• Prepare for Technological Growth: Increased military spending on tech could lead to new healthcare innovations. Staying informed on cutting-edge technology and telemedicine initiatives may give your practice a competitive edge.
  
  

• Plan for Future Financial Shifts: With the fiscal impact of the bill and its projected increase in the federal deficit, future Medicare or Medicaid changes could influence reimbursement rates and payment schedules for your services. Preparing for these adjustments can help minimize disruptions to your practice’s cash flow.

Let’s Figure This Out Together

Every practice, every business is different. The smart move is to get clear now before the deadlines and surprises hit.

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📞 920-696-5496

I’ll walk you through how the new law affects you, and more importantly, how you can make it work for your bottom line.

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