Health Disparity Zones Act of 2026

Neighborhoods with poor health outcomes could be named Health Disparity Zones — 10% higher Medicare pay, loan repayment, tax credits.

The details

A neighborhood could apply to be named a Health Disparity Zone and receive a package of federal incentives aimed at drawing in health care providers. Zones are small — one census tract or ZIP code, inside a metro or micropolitan area. Qualifying takes hard evidence of poor health. That can be average income under 150 percent of the poverty line, life expectancy below the national average, an above-average low birth weight rate, high WIC enrollment, or a federal health professional shortage designation. Applications come from a community nonprofit or local government working with a coalition of hospitals, clinics, and social service groups. Each plan must name at least one condition to target, such as diabetes, asthma, maternal health, or dental care. Medicare Part B would pay 10 percent more for care delivered inside a zone. Patients would not see that on their bills, because cost sharing is calculated as if the increase did not exist. Primary care, behavioral health, and dental practitioners who commit to at least a year in a zone could get up to $10,000 a year in student loan repayment, capped at $100,000. Employers hiring zone health workers would get a Work Opportunity Tax Credit. The workers themselves could claim a credit worth 40 percent of the wages earned doing that work. Grants would go to the nonprofit or agency that won the designation. It can pass money down to practitioners for equipment or building improvements, up to $5 million or half the cost. Grant funds may also cover mobile clinics, rides to appointments, interpreters, and better access to healthy food and housing. HHS must publish every applicant and proposed zone on its website. Congress gets a report each year on whether the incentives actually attracted practitioners and moved health outcomes. Designations run 10 fiscal years, then expire.