H.R. 7496: Health Investment Zones Act of 2026

The Health Investment Zones Act of 2026 aims to create designated areas known as Health Investment Zones (HIZs) to address and reduce health disparities and improve health outcomes in communities facing significant health challenges. The bill outlines the following key components:

Designation of Health Investment Zones

The Secretary of Health and Human Services (HHS) is required to designate areas as Health Investment Zones within two years of the bill's enactment. To qualify, these areas must:

• Be geographically contiguous.
• Show measurable health disparities, which can include:
  • Average income below 150% of the Federal poverty line.
  • Higher-than-average participation in the Child Nutrition Program.
  • Lower life expectancy than the national average.
  • Higher prevalence of low birth weight births.
  • Be designated as a health professional shortage area.

The HHS Secretary will publish a list of designated Health Investment Zones and their coalition partners within one year after the designations are announced.

Application Process

Community-based non-profit organizations or local government agencies, in collaboration with various health partners, must apply for designation as a Health Investment Zone. Applications must include a sustainable plan to:

• Reduce health disparities.
• Lower healthcare costs.
• Improve health outcomes.
• Identify specific health indicators for improvement.

The application must demonstrate the support of local stakeholders and integrate into any existing state health improvement plans.

Tax Incentives

The bill introduces tax incentives for employers hiring workers within the Health Investment Zones. Specifically, it modifies the work opportunity tax credit to include a “qualified Health Investment Zone worker,” which may help enhance job opportunities in these areas.

Additionally, employers may benefit from a 30% tax credit on wages paid to qualified Health Investment Zone workers for services aimed at increasing access to healthcare in these zones.

Grants and Funding

For each designated Health Investment Zone, the Secretary may award grants aimed at supporting initiatives to reduce health disparities. The funds can be used for:

• Subgrants to health practitioners for innovative health service delivery.
• Funding programs that provide access to healthcare, including mobile clinics and transportation services for patients.
• Enhancing facilities and equipment for healthcare providers.

Student Loan Repayment Program

The bill establishes a loan repayment program for health practitioners who agree to work in Health Investment Zones. Under this program, eligible practitioners can receive financial assistance for their student loans over a specified period, which can help attract healthcare professionals to these underserved areas.

Incentive Payments for Medicare Services

The bill proposes additional payments for Medicare services provided within Health Investment Zones. These payments will be a percentage on top of standard reimbursements for various medical services, intended to support healthcare delivery in these areas.

Reporting and Accountability

The Secretary of HHS must report to Congress within ten years after the first Health Investment Zone is designated, detailing the implementation results and the effectiveness of the initiatives regarding health disparities, healthcare costs, and the employment of healthcare practitioners in the designated areas.

Definitions and Duration of Designation

The act defines key terms, including "Health Investment Zone" and "Health Investment Zone practitioner." The designation of an area as a Health Investment Zone will last for ten years.

Authorization of Appropriations

The bill authorizes the necessary funding to implement its initiatives over the ten-year period from the first designation of a Health Investment Zone.

Relevant Companies

• UNH - UnitedHealth Group may see impacts from new healthcare access initiatives and incentives to improve service delivery within designated zones.
• HCA - HCA Healthcare could be affected by increased service demand and funding initiatives aimed at health facilities in HIZs.
• ANTM - Anthem, Inc. might experience shifts in health insurance enrollment and health management practices due to enhanced access to services.