Assigned to HEA                                                                                                                FOR COMMITTEE

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR S.B. 1209

 

primary care providers; loan repayment

 

Purpose

 

Increases, from two years to four years, the length of time a participant must serve in either the primary care provider loan repayment program or the rural private primary care provider loan repayment program.

 

Background

 

The primary care provider loan repayment program repays educational loans for health professionals (physicians, physician assistants, nurses, nurse midwives and dentists) who contract with the state to work in public or nonprofit entities located in federally designated health professional shortage areas.  Federal health professional shortage areas (HPSAs) are based on recommendations from state health departments and are designated by geographic areas, specific population groups or specific facilities.  This program is supported by state general fund revenue and matching federal funds.  Currently, there are 12 active participants in the program and 3 pending applications.

 

The rural private primary care provider loan repayment program is a separate loan repayment program for health professionals (physicians, physician assistants, nurses, nurse midwives and dentists) who provide sliding fee scale health care services in medically underserved areas to medically uninsured individuals in families with income below 200 percent of the federal poverty level ($34,100 for a household of four).  Applicants who agree to serve in rural areas are given a preference.  In addition, the Department of Health Services (DHS) designates certain geographic areas as Arizona medically underserved areas.  Currently, there are 15 participants in this program.

 

Under both programs, repayment of loans for eligible physicians and dentists is limited to $20,000 for each of the first two years of service, $22,000 for the third year and $25,000 for the fourth.  Mid-level service providers are limited to $7,500 for each year of service. 

 

According to DHS, there is no cost to the state general fund associated with the provisions of this measure.

 

Provisions

 

1.      Increases, from two years to four years, the length of time a participant must serve in either the primary care provider loan repayment program or the rural private primary care provider loan repayment program.

 

2.      Increases, from two years to four years, the maximum number of years a physician or dentist may apply for additional contracts under both loan repayment programs.

 

3.      Makes conforming changes.

 

4.      Provides for a general effective date.

 

 

Prepared by Senate Staff

January 26, 2001