S. 3840: Health Investment Zones Act of 2026

The Health Investment Zones Act of 2026 aims to establish designated areas known as Health Investment Zones to tackle health disparities and enhance health outcomes within those regions. Here’s a breakdown of what the bill entails:

Designation of Health Investment Zones

The Secretary of Health and Human Services is required to designate specific geographic areas as Health Investment Zones within two years of the law being enacted. These areas must have documented health disparities, such as:

• Average income below 150% of the federal poverty line
• Higher participation rates in supplemental nutrition programs compared to the national average
• Lower life expectancy than the national average
• Higher rates of low birth weight
• Designation as a health professional shortage area

The Secretary will publish the designated zones along with relevant coalition partners and descriptions within one year of completing the designations.

Application Process

Community-based nonprofit organizations or local government agencies, in collaboration with healthcare providers and other related organizations, can apply for a Health Investment Zone designation. These applications must include a sustainable plan to:

• Reduce health disparities
• Lower healthcare costs
• Improve health outcomes

The applications may also seek grants to support these initiatives and should identify specific health indicators such as cardiovascular disease, asthma, or diabetes to focus on for improvement.

Priorities for Selection

When selecting areas for designation, the Secretary will prioritize applications based on factors like local stakeholder support, long-term funding sustainability, integration with state health improvement plans, and evaluation of impact.

Tax Incentives

The bill introduces tax incentives for hiring workers in Health Investment Zones. Employers would be eligible for a tax credit for wages paid to qualified Health Investment Zone workers. The criteria for these workers include being certified as employees within a Health Investment Zone.

Grants for Health Investment Zones

The Secretary may award grants to support organizations that have developed plans to reduce health disparities in their designated zones. Funded activities may include:

• Subgrants to healthcare practitioners to enhance service delivery
• Innovative public health strategies, such as mobile clinics, transportation services for patients, and improving access to healthy food

Student Loan Repayment Program

The bill establishes a student loan repayment program for eligible health practitioners who agree to work in a Health Investment Zone. The Secretary can pay off portions of their educational loans up to a specified limit for every year they serve in those areas.

Incentives for Medicare Services

Healthcare services provided in designated Health Investment Zones under Medicare will qualify for additional incentive payments. These payments will be a percentage of the regular payment rate for services rendered in these regions.

Reporting and Accountability

Within 10 years of the first Health Investment Zone designation, the Secretary must report to Congress on the implementation and results of the Act, including the effectiveness of the incentives and their impact on health disparities and costs.

Definitions and Authorization

Key terms such as “Health Investment Zone” and “Health Investment Zone practitioner” are defined within the legislation, clarifying the roles and responsibilities of various stakeholders involved. Additionally, the bill authorizes appropriations necessary to implement its provisions for ten years following the establishment of the first Health Investment Zone.

Relevant Companies

None found.