Health Investment Zones Act of 2026
- Bill Number
- H.R. 7496
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-02-11: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-03-11T14:19:25Z
AI-Generated Summary
Purpose of the Legislation
The Health Investment Zones Act of 2026 aims to identify and support underserved areas in the United States by designating them as "Health Investment Zones." These zones receive federal incentives, grants, and programs to address geographic health disparities—differences in health outcomes based on location—and improve overall health results, such as reducing disease rates and enhancing access to care.
Key Provisions
- Designation of Health Investment Zones:
- The Secretary of Health and Human Services (HHS) must designate eligible areas within 2 years of enactment, based on applications from community-based nonprofits or local government agencies in coalition with health providers, clinics, and social services.
- Eligibility requires a contiguous geographic area with documented health challenges, such as low average income (below 150% of the federal poverty line), high participation in federal nutrition programs for women, infants, and children (WIC), lower life expectancy, higher low birth weight rates, or status as a health professional shortage area.
- Applications must include a sustainable plan to reduce disparities, lower health care costs, improve outcomes, and target specific health issues like cardiovascular disease, asthma, diabetes, behavioral health, maternal health, or obesity.
- Priority goes to applications showing strong local support, long-term funding plans, integration with state health strategies, evaluation methods, and use of state incentives. Geographic diversity, including rural areas, is considered.
- Designations last 10 years, with public publication of zone details.
- Tax Incentives:
- Extends the Work Opportunity Tax Credit (a federal tax break for hiring certain workers) to employers hiring "qualified Health Investment Zone workers" (individuals working primarily in these zones to promote health care access), covering qualified first-year wages.
- Introduces a new tax credit (Section 25G of the Internal Revenue Code) providing 30% of wages for qualified workers in these zones, applicable to wages earned after enactment.
- Grants:
- HHS may award grants to applicant organizations for zones to support coalitions in reducing disparities.
- Funds can be used for subgrants to health practitioners (up to $5 million or 50% of costs, whichever is less) for innovative strategies, such as student internships, language access services, mobile clinics, transportation to appointments, healthy food access, housing improvements, or facility upgrades/equipment.
- Student Loan Repayment Program:
- HHS establishes a program repaying up to $10,000 per year (total $100,000) on eligible educational loans for health practitioners agreeing to provide full-time services in a zone for at least 1 year, up to 10 years.
- Payments count toward existing federal loan forgiveness programs but cannot duplicate other federal benefits or apply to already forgiven loans.
- Eligible practitioners include licensed primary care, behavioral health, or dental providers participating in Medicare or Medicaid.
- Medicare Incentive Payments:
- Adds a 10% bonus payment on Medicare Part B services (outpatient care) provided in zones, plus an extra 5% for services at independent physician offices, clinics, or federally qualified health centers.
- An additional 10% bonus applies to specific preventive services like annual wellness visits, diabetes training, chronic care management, mammograms, or colorectal cancer screenings.
- Payments are coordinated to avoid overlap with other Medicare add-ons.
- Reporting and Funding:
- HHS must report to Congress after 10 years on incentives used, impacts on practitioner attraction, disparities reduction, cost savings, and access to care (e.g., primary vs. emergency services).
- Authorizes necessary appropriations for 10 years starting from the first designation.
Significant Changes to Existing Law
- Internal Revenue Code Amendments: Expands the Work Opportunity Tax Credit (Section 51) to include Health Investment Zone workers and adds a new individual wage credit (Section 25G), both effective after enactment, to encourage employment in underserved health areas.
- Social Security Act Amendment: Adds Subsection (ee) to Section 1833, introducing targeted bonus payments for Medicare services in designated zones, without affecting existing payment adjustments like those for teaching hospitals or rural care.
- These changes build on existing programs (e.g., WIC eligibility, health shortage designations) but create a new framework tying incentives directly to zone-specific health improvements.
Potential Impacts
- Government Agencies: HHS gains responsibilities for designations, grant administration, loan repayments, and reporting, potentially increasing workload and requiring new funding (appropriations authorized but not specified). The IRS and Centers for Medicare & Medicaid Services (CMS) will handle tax credits and payment bonuses, possibly raising federal health spending.
- Citizens: Residents in designated zones (often low-income or rural areas) may see better access to preventive care, reduced emergency room use, and lower health disparities, leading to longer life expectancy and fewer chronic conditions. Health workers could benefit from tax credits, loan relief, and grants, encouraging more providers in underserved spots.
- International Relations: No direct impacts; the bill focuses on domestic U.S. health equity.
Main Stakeholders Affected
- Underserved Communities: Low-income residents in zones with health disparities, who gain improved local services and outcomes.
- Health Care Providers and Facilities: Practitioners (doctors, nurses, dentists), clinics, hospitals, and mobile units eligible for subgrants, loan repayments, tax credits, and Medicare bonuses.
- Nonprofits and Local Governments: Lead applicants and coalition partners receiving grants to coordinate efforts.
- Federal Taxpayers and Medicare Enrollees: Indirectly affected through tax incentives and increased Medicare payments, which could influence overall program costs.
- Workers in Health Zones: Employees qualifying for wage-based tax credits, boosting job opportunities in health promotion.
Notable Legal, Constitutional, or Political Implications
- Legal: Establishes a structured, application-based system for federal incentives, ensuring accountability through plans, evaluations, and reporting. It integrates with existing laws (e.g., Medicare, tax code) without overriding them, but requires HHS to define terms like "innovative strategies" via guidance.
- Constitutional: Aligns with Congress's authority under the General Welfare Clause (Article I, Section 8) to promote public health and equity; no apparent free speech, equal protection, or federalism issues, as it encourages voluntary state and local participation.
- Political: Promotes health equity in disadvantaged areas, potentially appealing across party lines by addressing rural and urban disparities. However, it could spark debates on federal spending priorities, tax breaks for businesses, and the 10-year sunset provision, which limits long-term commitments while allowing for renewal based on results.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-02-11: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-02-11: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-02-11: Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-02-11: Introduced in House
- 2026-02-11: Introduced in House
Bill Versions
- Health Investment Zones Act of 2026 — issued 2026-02-11 — PDF (20 pages)