HR 4681
SPARC Act
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Sign in to take action- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Bill overview
The SPARC Act aims to address shortages of specialty medicine physicians and non-physician specialty health care providers in rural communities by creating a loan repayment program. Physicians and other health care providers who commit to working in these underserved areas for six years can receive a portion of their eligible student loan principal and interest payments. The program is funded through appropriations and requires regular reports to Congress on its impact.
Key provisions
- Creates a loan repayment program for specialty medicine physicians and non-physician specialty health care providers.
- Eligible loans include student loans for education in specialty medicine or health care.
- Participants must commit to a 6-year period of full-time service in a rural community experiencing a shortage.
- The maximum repayment amount per year is $250,000.
- Non-physician specialty health care providers are eligible for a smaller portion of loan repayment.
- Participants cannot receive loan forgiveness through other programs simultaneously.
- The program requires regular reports to Congress on its effectiveness.
- Appropriations are authorized for the program through 2034.
Who is affected
- Specialty medicine physicians
- Non-physician specialty health care providers
- Rural communities
- Health care providers
- Students with medical or healthcare education loans
Notable changes
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Primary sponsor
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119th CONGRESS — 1st Session
H. R. 4681
IN THE HOUSE OF REPRESENTATIVES
A BILL
To amend the Public Health Service Act to authorize a loan repayment program to encourage specialty medicine physicians to serve in rural communities experiencing a shortage of specialty medicine physicians, and for other purposes.
This Act may be cited as the Specialty Physicians Advancing Rural Care Act SPARC Act
or the
.
Title VII of the Public Health Service Act (42 U.S.C. 292 et seq.) is amended—
by redesignating part G (42 U.S.C. 795j et seq.) as part H; and
by inserting after part F (42 U.S.C. 295h) the following new part:
The Secretary, acting through the Administrator of the Health Resources and Services Administration, shall carry out a program under which—
the Secretary enters into agreements with specialty medicine physicians to make payments in accordance with subsection (b) on the principal of and interest on any eligible loans described in subsection (c); and
the specialty medicine physicians each agree to complete a period of obligated service described in subsection (d) as a specialty medicine physician in the United States in a rural community experiencing a shortage of specialty medicine physicians.
The Secretary, acting through the Administrator of the Health Resources and Services Administration, may carry out a program under which—
the Secretary enters into agreements with non-physician specialty health care providers to make payments in accordance with subsection (b) on the principal of and interest on any eligible loans described in subsection (c); and
the non-physician specialty health care providers each agree to complete a period of obligated service described in subsection (d) as a non-physician specialty health care provider in the United States in a rural community experiencing a shortage of such providers.
For each year of obligated service by a specialty medicine physician pursuant to an agreement under subsection (a)(1) or by a non-physician specialty health care provider pursuant to an agreement under subsection (a)(2), the Secretary shall make a payment to such physician or provider as follows:
The Secretary shall pay—
for each year of obligated service by a specialty medicine physician or non-physician specialty health care provider pursuant to an agreement under paragraph (1) or (2) of subsection (a), 1/6 of the principal of and interest on each eligible loan of the physician or provider which is outstanding on the date the physician or provider began service pursuant to the agreement; and
for completion of the sixth and final year of such service, the remainder of such principal and interest.
The total amount of payments under this section to any specialty medicine physician or non-physician specialty health care provider shall not exceed $250,000.
The loans eligible for repayment under this section are each of the following:
Any loan for education in specialty medicine or specialty health care.
Any Federal Direct Stafford Loan, Federal Direct PLUS Loan, Federal Direct Unsubsidized Stafford Loan, or Federal Direct Consolidation Loan (as such terms are used in section 455 of the Higher Education Act of 1965).
Any Federal Perkins Loan under part E of title I of the Higher Education Act of 1965.
Any other Federal loan as determined appropriate by the Secretary.
Any specialty medicine physician or non-physician specialty health care provider receiving payments under this section as required by an agreement under paragraph (1) or (2) of subsection (a) shall agree to a 6-year commitment to full-time employment, with no more than 1 year passing between any 2 years of covered employment, as a specialty medicine physician or non-physician specialty health care provider, as applicable, in the United States in a rural community experiencing a shortage of specialty medicine physicians or non-physician specialty health care providers, as applicable.
No borrower may, for the same service, receive a reduction of loan obligations or a loan repayment under both—
this section; and
any federally supported loan forgiveness program, including under section 338B, 338I, or 846 of this Act, or section 428J, 428L, 455(m), or 460 of the Higher Education Act of 1965.
The Secretary may establish a liquidated damages formula to be used in the event of a breach of an agreement entered into under paragraph (1) or (2) of subsection (a).
The failure by a specialty medicine physician or a non-physician specialty health care provider to complete the full period of service obligated pursuant to such an agreement, taken alone, shall not constitute a breach of the agreement, so long as the physician or provider completed in good faith the years of service for which payments were made to the physician or provider under this section.
Non-physician specialty health care providers participating in the program under this section are not eligible for other Federal loan forgiveness programs specific to health care providers. Not more than 15 percent of amounts made available to carry out this section for a fiscal year may be allocated to awards to non-physician specialty health care providers.
Not later than 5 years after the date of enactment of this section, and not less than every other year thereafter through fiscal year 2033, the Secretary shall report to Congress on—
the practice location of special medicine physicians and non-physician specialty health care providers participating, or who have participated, in the loan repayment program under this section; and
the impact of the loan repayment program under this section on the availability of specialty medicine or specialty health care services in the United States in rural communities experiencing a shortage of specialty medicine physicians or non-physician specialty health care providers.
The Administrator of the Health Resources and Services Administration shall update publicly available data on the supply of specialty medicine physicians and non-physician specialty health care providers, as appropriate.
In this section:
The term non-physician specialty health care provider means a health professional other than a physician who is licensed to provide patient care other than primary care services.
The term specialty medicine physician means a physician practicing in an area of medicine other than primary care.
To carry out this section, there are authorized to be appropriated such sums as may be necessary for fiscal years 2025 through 2034.