Health Disparity Zones Act of 2026
- Bill Number
- H.R. 9488
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Status
- Introduced
- Latest Action
- 2026-06-25: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, 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
- 2026-07-07T05:08:21Z
AI-Generated Summary
Health Disparity Zones Act of 2026 (H.R. 9488)
Purpose
This legislation establishes a framework to designate specific geographic areas as Health Disparity Zones. The goal is to reduce health disparities and improve health outcomes in those areas through targeted incentives and support.
Key Provisions
- Designation Process: The Secretary of Health and Human Services (HHS) must solicit applications and designate eligible areas within 18 months of enactment. Areas must be contiguous (one census tract or ZIP Code), show documented health disparities (such as average income below 150% of the federal poverty line, higher rates of low birth weight, or designation as a health professional shortage area), and be part of a Metropolitan or Micropolitan Statistical Area. Designations last for 10 fiscal years.
- Application Requirements: Community-based nonprofits or local government agencies, in coalition with health providers and organizations, submit plans to reduce disparities, lower health care costs, improve outcomes, and use specified incentives. Plans must target at least one area like cardiovascular disease, diabetes, or maternal health.
- Selection Factors: The Secretary prioritizes applications with strong stakeholder support, long-term funding plans, private sector involvement, integration with state plans, and evaluation strategies. Geographic diversity, including rural areas, is considered.
- Consultation: HHS must consult with the Secretary of Housing and Urban Development and the Deputy Assistant Secretary for Minority Health.
- Incentives:
- Tax credits under the Internal Revenue Code, including an expansion of the Work Opportunity Credit for hiring qualified workers in these zones and a new 40% credit for wages earned by such workers.
- Grants to applicants for subgrants to practitioners, supporting strategies like mobile clinics, transportation, equipment, and improvements to facilities.
- A student loan repayment program for eligible practitioners, offering up to $10,000 per year (maximum $100,000 total) for up to 10 years of service in a zone.
- A 10% increase in Medicare Part B payment rates for items and services furnished in designated zones (with cost-sharing calculated as if the increase did not apply).
- Reporting: Annual reports to Congress must detail incentives provided and evidence of impacts on practitioner recruitment, health outcomes, and costs.
- Appropriations: Such sums as necessary are authorized for 10 fiscal years.
Significant Changes to Existing Law
- Amends the Internal Revenue Code of 1986 to add new categories for the Work Opportunity Credit and create a new tax credit section (25G) for qualified workers in Health Disparity Zones.
- Amends section 1833(a) of the Social Security Act to introduce a temporary 10% payment increase for Medicare Part B services in designated zones.
- Creates new federal programs for grants and loan repayment, building on but distinct from existing health professional shortage area designations under the Public Health Service Act.
Potential Impacts
- Government Agencies: Increases responsibilities for HHS in designation, grant administration, and reporting; involves the IRS for tax credit implementation; and affects the Centers for Medicare & Medicaid Services through adjusted Medicare payments.
- Citizens: Aims to improve access to care and health outcomes for residents in designated low-income or high-disparity areas, potentially benefiting underserved populations through incentives for providers and community programs.
- International Relations: No provisions address international matters.
Main Stakeholders Affected
- Community-based nonprofit organizations and local government agencies submitting applications.
- Health care practitioners, hospitals, clinics, and related organizations in designated zones.
- Residents and patients in areas with documented health disparities.
- Medicare and Medicaid providers and beneficiaries.
- Educational loan holders entering health professions.
Notable Legal, Constitutional, or Political Implications
- The bill introduces new federal spending and tax incentives without altering core constitutional structures, relying on existing authorities under the Public Health Service Act and Social Security Act.
- It emphasizes geographic and stakeholder diversity in implementation but does not create new regulatory mandates beyond designation and reporting.
- Designations are time-limited to 10 years, with built-in evaluation requirements to assess effectiveness.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-06-25: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, 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.
- 2026-06-25: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, 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.
- 2026-06-25: Introduced in House
- 2026-06-25: Introduced in House
Bill Versions
- Health Disparity Zones Act of 2026 — issued 2026-06-25 — PDF (16 pages)