S. 1380: Specialty Physicians Advancing Rural Care Act

The Specialty Physicians Advancing Rural Care Act, known as the SPARC Act, proposes to create a loan repayment program aimed at encouraging specialty medicine physicians and non-physician specialty health care providers to practice in rural communities where there is a shortage of such practitioners. The main components of the bill are outlined below:

Loan Repayment Program

The bill establishes a program where the Secretary of Health and Human Services, through the Health Resources and Services Administration, can enter into agreements with specialty medicine physicians and non-physician specialty health care providers. These agreements involve:

• The Secretary making payments to cover a portion of the principal and interest on eligible loans for these healthcare providers.
• Providers must agree to complete a specified period of service in a rural community that lacks sufficient specialty healthcare services.

Eligibility and Payments

Payments are structured as follows:

• The Secretary will pay a portion of the outstanding loans for each year the provider fulfills their service obligations.
• For every year of service, one-sixth of the principal and interest of the loans will be covered. After six years of service, the remainder will be paid off.
• The total amount of loan repayment for any individual under this program is capped at $250,000.

Types of Eligible Loans

The loans that qualify for repayment include:

• Any loans taken to fund education in specialty medicine or specialty health care.
• Federal Direct Stafford Loans, PLUS Loans, Unsubsidized Stafford Loans, and Consolidation Loans.
• Federal Perkins Loans.
• Other federal loans deemed appropriate by the Secretary.

Obligated Service Requirement

Participants must commit to a full-time position in a rural community for a minimum of six years, with specific conditions on the timing of their employment.

Ineligibility for Double Benefits

The bill specifies that participants cannot receive repayment under this program for the same service if they are also taking part in other federally funded loan forgiveness programs.

Breach of Agreement

If a participant fails to complete their service commitment, it does not automatically count as a breach, provided they have completed a good faith effort during the years for which they received payments.

Reporting Requirements

The Secretary must report to Congress every two years on the practice locations of participants in the program and the impact of the program on the availability of specialty healthcare services in rural communities.

Data Updates

The Health Resources and Services Administration is tasked with maintaining updated public data on the supply of specialty medicine physicians and non-physician specialty health care providers.

Definitions

The bill defines certain terms, including:

• Specialty medicine physician: A physician practicing in a specialty area outside of primary care.
• Non-physician specialty health care provider: A licensed health professional who provides specialty care but is not a physician.

Funding Authorization

The bill authorizes the necessary appropriations for carrying out this program for fiscal years 2025 through 2034.

Relevant Companies

• None found