H.R. 9488 — Health Disparity Zones Act of 2026

This section provides the short title of the Act as the Health Disparity Zones Act of 2026 and lists the table of contents.

This section directs the Secretary of Health and Human Services to designate qualifying areas as Health Disparity Zones within 18 months after enactment, for a period of 10 fiscal years. Eligible areas must be contiguous census tracts or ZIP Codes in metropolitan or micropolitan statistical areas that demonstrate health disparities through at least one of the following: average income below 150 percent of the federal poverty line, above-average participation in the Special Supplemental Nutrition Program for Women, Infants, and Children, lower-than-average life expectancy, higher-than-average low birth weight rates, or designation as a health professional shortage area. Applications from community-based coalitions must include plans to reduce disparities, lower health care costs, improve outcomes, and use incentives under sections 4 through 7, with priority for proposals showing stakeholder support, private funding, state plan integration, and evaluation methods.

This section expands the work opportunity tax credit to cover qualified Health Disparity Zone workers for wages paid for qualified Health Disparity Zone work. It also establishes a new nonrefundable tax credit equal to 40 percent of wages received by such workers for qualified Health Disparity Zone work. The changes apply to amounts paid or incurred after the date of enactment for individuals who begin work after that date.

This section authorizes the Secretary to award grants to community-based nonprofit organizations or local governmental agencies in each Health Disparity Zone to reduce health disparities and improve health outcomes. Grantees may use funds for subgrants to practitioners (capped at $5 million or 50 percent of costs) to implement strategies including mobile medical and dental clinics, patient transportation, language services, internships for zone residents, and capital improvements or equipment at zone facilities.

This section establishes a student loan repayment program under which the Secretary enters into agreements with eligible Health Disparity Zone practitioners to repay principal and interest on their eligible educational loans for each year they provide health care services in a Health Disparity Zone. The program limits payments to $10,000 per year and $100,000 total per practitioner for up to 10 years, and bars participants from receiving benefits under other federal loan forgiveness programs for the same service.

This section increases Medicare Part B payment rates by 10 percent for items and services furnished in a Health Disparity Zone during the period beginning on the first day of the zone’s designation and ending on the last day of the tenth fiscal year after enactment of this Act. Cost-sharing amounts remain unchanged.

This section requires the Secretary to submit a report to Congress at the end of each of the 10 fiscal years following enactment on the implementation of the Act. Each report must specify the number and types of incentives provided in each Health Disparity Zone and include evidence of their effects on attracting health care practitioners, reducing health disparities and improving outcomes, and lowering health costs and hospital admissions and readmissions.

This section defines Health Disparity Zone as an area designated under section 2 of the Act. It defines Health Disparity Zone practitioner as a state-licensed provider offering primary care (including obstetrics, gynecology, pediatrics, or geriatrics), behavioral health, or dental services who participates in Medicare or Medicaid. It defines Secretary as the Secretary of Health and Human Services.