Health Investment Zones Act of 2026
Sponsored By: Senator Padilla, Alex [D-CA]
Introduced
Summary
Reduce health disparities by creating Health Investment Zones that target contiguous high-need areas and tie federal grants, tax incentives, loan repayment, and Medicare payments to local plans that improve outcomes and lower costs.
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- Residents and families in designated zones would get targeted funding and programs focused on diseases like cardiovascular disease, asthma, diabetes, maternal and birth health, behavioral health, and obesity. Applicants must show measurable disparities such as average income below 150 percent of the federal poverty level or higher SNAP participation.
- Health workers would be encouraged to practice in zones through hiring credits, a new zone tax credit, student loan repayment for practitioners, and incentive payments under Medicare Part B for services delivered in zones.
- Local health systems and coalitions can apply for competitive grants and must submit plans to reduce disparities, improve outcomes, and cut or save health system costs. Designations would last 10 years and include federal reporting and evaluation to track effectiveness.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 5 benefits, 0 costs, 0 mixed.
Loan relief for Health Investment Zone workers
If enacted, the Secretary could repay federally funded or guaranteed student loans for practitioners who agree to provide full-time services in a Health Investment Zone. The program would pay up to $10,000 per year, and no more than $100,000 total, for each practitioner and for no more than 10 years. Payments would count toward qualifying payments for forgiveness programs. The program would bar duplicate federal payments and would not pay on loans already forgiven, cancelled, or repaid.
Tax credit for Health Investment Zone workers
If enacted, individuals whose main job is inside a Health Investment Zone would be able to claim a new tax credit equal to 30% of wages earned for qualified Health Investment Zone work during the taxable year. The credit would apply to wages received after enactment. To qualify, a worker's principal place of employment while earning the wages must be within a designated Health Investment Zone.
Employer credit for Health Zone hires
If enacted, the Work Opportunity Tax Credit would be expanded to cover certified Health Investment Zone workers. Employers could claim the credit for qualified first-year wages paid to hires who are certified as having a principal place of employment in a Health Investment Zone as of the hiring date. The change would apply to wages paid after enactment to individuals who begin work after that date.
Higher Medicare payments in zones
If enacted, Medicare Part B would pay an extra 10% for covered items and services furnished in a Health Investment Zone. Services furnished at a qualifying freestanding office or independent clinic (billing place-of-service 11 or 22) that is not owned or controlled by a hospital enrolled in PECOS, or at a Federally Qualified Health Center, would get an extra 5%. Certain services would get another 10% add-on, including annual wellness visits (HCPCS G0438-G0439), diabetes self-management training (CPT 98960-98962), chronic care management (CPT 99487-99491), and specified preventive screenings like mammography or colorectal screening. These extra payments would apply only to Part B services provided inside designated Health Investment Zones.
New Health Investment Zones Program
If enacted, the Health Secretary would solicit applications within 1 year and must name Health Investment Zones within 2 years. Areas would qualify if contiguous and show at least one measured health disparity, like income below 150% of the poverty line, higher SNAP use, lower life expectancy, more low birth weight babies, or a health professional shortage designation. Local nonprofits or governments must apply in coalition with health providers and community groups. Designated zones could get grants to fund clinics, translators, mobile medical or dental clinics, patient transport, healthy food access, recreation, housing, and capital or equipment; equipment or facility subgrants would be limited to the lesser of $5,000,000 or 50% of project costs. Congress would be authorized to appropriate such sums as needed until 10 years after the first zone is designated.
Sponsors & CoSponsors
Sponsor
Padilla, Alex [D-CA]
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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