S. 4208: Rural America Health Corps Act

The Rural America Health Corps Act is a proposal to create a program aimed at helping individuals working in health care in rural areas by offering financial assistance to pay off student loans. Here are the main points of what the bill would do:

Establishment of a Demonstration Program

The bill calls for the Secretary of Health and Human Services to set up a demonstration program. This program will provide financial payments on eligible loans for individuals who qualify under specific criteria.

Eligibility Criteria

To be eligible for the loan repayment assistance, individuals must:

• Be eligible for the National Health Service Corps Loan Repayment Program (but not enrolled in it), and
• Agree to serve in a rural health professional shortage area for a minimum of five years in a full-time capacity.

Payment Structure

The payments to assist with student loans will be structured as follows:

• For each year of service completed in a rural area, the Secretary will pay one-fifth of the total outstanding principal and interest on eligible loans, up to the time the individual began service.
• Upon completing the fifth year of service, the remaining balance of the principal and interest will be paid.

The total amount that can be paid under the program cannot exceed $200,000 per individual.

Conditions and Breach of Agreement

If an individual fails to complete the full duration of service, this will not automatically be considered a breach of agreement, provided they have fulfilled the service for which they received payments. The Secretary may establish consequences for those who do breach their agreement.

Exclusions from Designation Process

Participants in this program will not be counted in the designation of health professional shortage areas for the duration of the program from 2026 through 2030.

Reporting Requirements

A report evaluating the effectiveness of the demonstration program regarding health care access in rural areas must be submitted to Congress within five years after the bill is enacted.

Funding Authorization

The bill authorizes $50 million each year from 2027 to 2031 to support the program.

Definition of Health Professional Shortage Area

For the purposes of this bill, a health professional shortage area is defined based on existing criteria under current law.

Relevant Companies

None found