Health Investment Zones Act of 2026
Sponsored By: Senator Alex Padilla
Introduced
Summary
Health Investment Zones would target federal grants and provider incentives to places with measurable health disparities to improve outcomes and attract care. The bill ties zone designation to tax credits, loan repayment, Medicare bonus payments, and local grant funding to support community plans.
Show full summary
- Families and communities in designated areas would get targeted grants and coordinated programs aimed at lowering disparities and improving health outcomes. Designations would last 10 years for each zone.
- Health workers would gain financial incentives to work in zones, including up to $100,000 in loan repayment per practitioner and a new 30 percent tax credit for wages tied to Health Investment Zone work.
- Medicare patients and providers in zones would see higher payments because Medicare Part B would add about a 10 percent bonus for services furnished in designated areas.
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 6 benefits, 0 costs, 0 mixed.
Loan repayment for HIZ practitioners
If enacted, HHS would set up a loan repayment program for eligible HIZ practitioners who agree to provide full-time care in a HIZ. Practitioners would need to commit at least one year of full-time service. The program would pay up to $10,000 per year, for no more than 10 years, and up to $100,000 total per practitioner. Payments would apply only to eligible federally funded or guaranteed student loans, would count toward other federal forgiveness programs, and could not duplicate other federal payments or pay loans already forgiven.
Tax credit for HIZ workers
If enacted, the bill would create a new individual tax credit equal to 30% of wages earned for qualified HIZ work. To qualify, your principal place of employment while earning the wages would need to be inside a Health Investment Zone and your job duties would need to promote access to health care in the zone. The credit would apply to wages received after enactment.
Employer hiring credit for HIZ workers
If enacted, the bill would let employers claim the Work Opportunity Tax Credit for hiring certified HIZ workers. The worker would need to be certified by the local designated agency as having a principal place of employment in a HIZ on the hiring date. The credit would apply to qualified first-year wages paid to hires who begin work after enactment.
Higher Medicare payments in HIZs
If enacted, Medicare Part B payments would get add-ons for services furnished in Health Investment Zones. Providers would receive a base 10% add-on to the Part B payment for items and services in a HIZ. Freestanding physician offices or independent clinics and Federally Qualified Health Centers would get an extra 5%. Certain preventive and chronic-care services (annual wellness visits, diabetes self-management training, chronic care management, and specified screenings) would get an additional 10%. Payments would be made monthly or quarterly and the bill would include rules to avoid overlapping add-ons.
New Health Investment Zones program
If enacted, the bill would create Health Investment Zones (HIZs). HHS would solicit applications within 1 year and must designate HIZs within 2 years. Areas would qualify if contiguous and show one or more problems such as average income below 150% of the Federal Poverty Line, above-average WIC use, lower life expectancy, higher low-birthweight rates, or Health Professional Shortage Area status. The Secretary would be able to award grants to HIZ grantees for local interventions and community improvements, and grantees could make subgrants to providers (subgrants limited to the lesser of $5,000,000 or 50% of equipment or capital costs). Designations would remain in effect until 10 years after the first HIZ is designated, appropriations would be authorized for that 10-year window, and HHS would report to Congress 10 years after the first designation on program outcomes.
Who counts as a HIZ practitioner
If enacted, the bill would define a "Health Investment Zone practitioner." A HIZ practitioner would need to be licensed or certified under State law, provide primary care (including OB/GYN, pediatrics, or geriatrics), behavioral health, or dental services, and be a participating Medicare or state Medicaid provider. This definition would determine who can get HIZ loan repayment, tax credits, subgrants, and Medicare payment add-ons.
Sponsors & CoSponsors
Sponsor
Alex Padilla
CA • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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