Health Disparity Zones Act of 2026

This bill, the Health Disparity Zones Act of 2026, seeks to address and reduce health disparities by establishing a program to designate specific geographic areas as Health Disparity Zones . The Secretary of Health and Human Services will designate these zones based on applications from community-based non-profit organizations or local governmental agencies, in coalition with healthcare providers and other partners. To qualify, an area must be a contiguous census tract or ZIP Code within a Metropolitan or Micropolitan Statistical Area, demonstrating measurable racial, ethnic, or geographic health disparities and poor health outcomes, such as low income, high WIC participation, lower life expectancy, or designation as a health professional shortage area. Designated zones will receive a package of incentives and support for a period of 10 fiscal years. These include new tax incentives : a Work Opportunity Credit for employers hiring qualified Health Disparity Zone workers, and a personal tax credit for qualified Health Disparity Zone workers equal to 40% of their wages for work promoting healthcare access within the zone. The bill also authorizes grants to designated zones, which can be used for innovative public health strategies such as internships, improving capacity for non-English speakers, mobile clinics, patient transportation, and capital improvements to healthcare facilities. Furthermore, the legislation establishes a student loan repayment program for eligible Health Disparity Zone practitioners, offering up to $10,000 per year for a maximum of 10 years, totaling $100,000, for those who agree to provide healthcare services in these zones. To enhance healthcare access and financial viability, the bill mandates a 10-percent increase in payment rates for items and services payable under Medicare Part B when furnished within a Health Disparity Zone. The Secretary is required to submit annual reports to Congress, detailing the incentives provided and evaluating their effectiveness in attracting practitioners, reducing disparities, improving health outcomes, and lowering healthcare costs within these zones.