What This Bill Does
This bill creates a new program to pay off student loans and other eligible debts for doctors, nurses and other health professionals who work in rural areas. The program covers people who already qualify for the existing National Health Service Corps Loan Repayment Program but are not currently using it. The bill requires these professionals to work full-time in a rural area that lacks enough health professionals for five years.
Who It Affects
The Secretary of Health and Human Services (the leader of the department handling health care programs)
Health professionals eligible for the National Health Service Corps Loan Repayment Program who agree to work in rural shortage areas
Borrowers with eligible loans (student loans and other debts)
Key Provisions
The Secretary of Health and Human Services must create a demonstration program that pays principal (the original amount borrowed) and interest (extra money paid on loans) for eligible individuals (Sec. 2(a)(1))
Participants must agree to work five years full-time in a rural health professional shortage area, which means a place with not enough doctors and nurses (Sec. 2(b)(1)(B))
The Secretary pays one-fifth of loan principal and interest each year of service, and pays the remaining balance after the fifth year is completed (Sec. 2(b)(2)(A))
No individual can receive more than $200,000 in total payments under this program (Sec. 2(b)(2)(B))
The Secretary must submit a report within five years evaluating how the program affects health care access in rural areas (Sec. 2(d))
What Changes
Health professionals eligible for the existing National Health Service Corps Loan Repayment Program can now choose this new demonstration program instead if they want to work in rural areas.
Important Definitions
Health professional shortage area: A place that does not have enough doctors, nurses and other health professionals to serve the population (defined by another section of federal law)
Effective Date
Not specified in bill text
I
118TH CONGRESS
1ST SESSION H. R. 1711
To establish a demonstration program to provide payments on eligible loans
for individuals who are eligible for the National Health Service Corps
Loan Repayment Program.
IN THE HOUSE OF REPRESENTATIVES
MARCH 22, 2023
Mr. KUSTOFF (for himself, Ms. BUDZINSKI, and Mrs. HARSHBARGER) intro-
duced the following bill; which was referred to the Committee on Energy
and Commerce
A BILL
To establish a demonstration program to provide payments
on eligible loans for individuals who are eligible for the
National Health Service Corps Loan Repayment Pro-
gram.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Rural America Health
4
Corps Act’’.
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•HR 1711 IH
SEC. 2. NATIONAL HEALTH SERVICE CORPS RURAL PRO-
1
VIDER LOAN REPAYMENT DEMONSTRATION
2
PROGRAM.
3
(a) IN GENERAL.—
4
(1) ESTABLISHMENT.—The Secretary of Health
5
and Human Services (referred to in this section as
6
the ‘‘Secretary’’) shall establish a demonstration
7
program to provide payments on the principal of and
8
interest on any eligible loan for eligible individuals
9
described in paragraph (2).
10
(2) ELIGIBLE INDIVIDUALS.—To be eligible for
11
payments under the program under this section, an
12
individual shall—
13
(A) be eligible to participate in the Loan
14
Repayment Program under section 338B of the
15
Public Health Service Act (42 U.S.C. 254l–1),
16
but not be participating in such Loan Repay-
17
ment Program; and
18
(B) agree to the requirements described in
19
subsection (b)(1).
20
(b) PROCEDURE.—
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(1) REQUIREMENTS.—To be eligible to receive
22
assistance under this section, an eligible individual
23
shall—
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(A) comply with all rules and requirements
25
described in section 338B of the Public Health
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•HR 1711 IH
Service Act (42 U.S.C. 254l–1), except for the
1
period of obligated service described in sub-
2
section (f)(1)(B)(iv) of such section and as pro-
3
vided in paragraphs (2) and (3) of this sub-
4
section; and
5
(B) agree to a period of obligated service
6
of 5 years of full-time employment in a health
7
professional shortage area that is a rural area.
8
(2) PAYMENTS.—
9
(A) SERVICE IN A RURAL AREA.—The Sec-
10
retary shall pay—
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(i) for each year of obligated service
12
by an individual pursuant to an agreement
13
under this section, 1⁄5 of the principal of
14
and interest on each eligible loan, as deter-
15
mined by the Secretary, which is out-
16
standing on the date the individual began
17
service pursuant to the agreement; and
18
(ii) for completion of the fifth and
19
final year of such service, the remainder of
20
such principal and interest.
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(B)
MAXIMUM
AMOUNT.—The
total
22
amount of payments under this section to any
23
individual shall not exceed $200,000.
24
(3) BREACH.—
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•HR 1711 IH
(A) LIQUIDATED
DAMAGES
FORMULA.—
1
The Secretary may establish a liquidated dam-
2
ages formula to be used in the event of a
3
breach of an agreement entered into under this
4
section.
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(B) LIMITATION.—The failure by an indi-
6
vidual to complete the full period of service obli-
7
gated pursuant to such an agreement, taken
8
alone, shall not constitute a breach of such
9
agreement, so long as the individual completed
10
in good faith the years of service for which pay-
11
ments were made to the individual under this
12
section.
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(4) APPLICABILITY OF LOAN REPAYMENT PRO-
14
GRAM PROVISIONS.—Except as otherwise provided in
15
this section, all provisions in subparts II and III of
16
title III of the Public Health Service Act (42 U.S.C.
17
241 et seq.) pertaining to the administration of, and
18
other requirements with respect to, the Loan Repay-
19
ment Program described in section 338B of such
20
Act (42 U.S.C. 254l–1) shall apply to the dem-
21
onstration program under this section.
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(c) DESIGNATIONS.—The demonstration program
23
under this section, and any providers who are selected to
24
participate in such program, shall not be considered by
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•HR 1711 IH
the Secretary in the designation of health professional
1
shortage areas under section 332 of the Public Health
2
Service Act (42 U.S.C. 254e) during fiscal years 2024
3
through 2028.
4
(d) REPORT.—Not later than 5 years after the date
5
of enactment of this Act, the Secretary shall submit to
6
the Committee on Health, Education, Labor, and Pen-
7
sions of the Senate and the Committee on Energy and
8
Commerce of the House of Representatives a report that
9
evaluates the demonstration program established under
10
this section, including the effects of such program on
11
health care access in rural areas.
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(e) HEALTH PROFESSIONAL SHORTAGE AREA.—In
13
this section, the term ‘‘health professional shortage area’’
14
has the meaning given such term in section 332 of the
15
Public Health Service Act (42 U.S.C. 254e).
16
(f) AUTHORIZATION OF APPROPRIATIONS.—There is
17
authorized to be appropriated to carry out this section,
18
$50,000,000 for each of fiscal years 2024 through 2028.
19
Æ
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