Bill Text: PA HB891 | 2009-2010 | Regular Session | Introduced

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Bill Title: Establishing the Physician Retention Loan Forgiveness Program in the Pennsylvania Higher Education Assistance Agency; providing for powers and duties of the Pennsylvania Higher Education Assistance Agency; and making an appropriation.

Spectrum: Slight Partisan Bill (Republican 30-15)

Status: (Introduced - Dead) 2009-03-12 - Referred to HEALTH AND HUMAN SERVICES [HB891 Detail]

Download: Pennsylvania-2009-HB891-Introduced.html

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PRINTER'S NO. 1010
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 891 Session of2009
INTRODUCED BY BAKER, WATSON, CLYMER, REICHLEY, BRENNAN, BRIGGS, CAUSER, CUTLER, FAIRCHILD, FLECK, GEIST, GINGRICH, GOODMAN, GROVE, HARHAI, HARHART, HENNESSEY, HUTCHINSON, KAUFFMAN, M. KELLER, KORTZ, LONGIETTI, OBERLANDER, D. O'BRIEN, PASHINSKI, PETRARCA, QUINN, READSHAW, SCAVELLO, SIPTROTH, VULAKOVICH, J. TAYLOR, CREIGHTON, RAPP AND MELIO, MARCH 12, 2009
REFERRED TO COMMITTEE ON HEALTH AND HUMAN SERVICES, MARCH 12, 2009
AN ACT
Establishing the Physician Retention Loan Forgiveness Program in
the Pennsylvania Higher Education Assistance Agency;
providing for powers and duties of the Pennsylvania Higher
Education Assistance Agency; and making an appropriation.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Physician
Retention Loan Forgiveness Act.
Section 2. Purpose.
The purpose of this act is to improve patient access to
health care by assisting the Commonwealth with recruitment and
retention of physicians.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Agency." The Pennsylvania Higher Education Assistance
Agency.
"Approved clinic." As defined in section 3 of the act of
December 4, 1996 (P.L.893, No.141), known as the Volunteer
Health Services Act.
"Health care facility." As defined in section 103 of the act
of July 19, 1979 (P.L.130, No.48), known as the Health Care
Facilities Act.
"Medically underserved area." An area of this Commonwealth
that is reported by the Department of Health as medically
underserved.
"Physician." A medical doctor, doctor of osteopathy or
dentist.
"Primary care health professional shortage area." An area of
this Commonwealth that is reported by the Department of Health
as having a shortage of primary care health professionals.
"Program." The Physician Retention Loan Forgiveness Program
established by this act.
Section 4. Program.
(a) Establishment.--The Physician Retention Loan Forgiveness
Program is established in the agency.
(b) Applications.--The agency shall promulgate guidelines
for the selection of candidates to the program based upon the
following criteria:
(1) Demonstrated need.
(2) Willingness to continue practicing as a physician in
this Commonwealth after completing the program.
(c) Eligibility.--A program applicant must be:
(1) A citizen of the United States.
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(2) Licensed to practice medicine in this Commonwealth.
(d) Selection.--The agency shall give preference to
physicians in the following order:
(1) Commonwealth physicians completing training in this
Commonwealth who agree to practice medicine in one of the
following:
(i) A medically underserved area.
(ii) A primary care health professional shortage
area.
(iii) An approved clinic as a volunteer.
(2) Commonwealth physicians completing training in this
Commonwealth.
(3) Commonwealth natives completing out-of-State
training who agree to practice in a medically underserved
area or a primary care health professional shortage area.
(4) Out-of-State applicants completing training in this
Commonwealth who agree to practice in a medically underserved
area or a primary care health professional shortage area.
(e) Verification.--The agency shall monitor and verify a
physician's fulfillment of all requirements under this act.
Section 5. Amount of loan forgiveness.
(a) Physicians practicing full time.--A physician accepted
into the program practicing full time may be reimbursed an
amount up to 100% of the total loan for physician training or no
more than $75,000, whichever is less, based upon the following
repayment assistance schedule:
(1) First year of service, 10%.
(2) Second year of service, 15%.
(3) Third year of service, 15%.
(4) Fourth year of service, 15%.
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(5) Fifth year of service, 15%.
(6) Sixth year of service, 15%.
(7) Seventh year of service, 15%.
(b) Physicians practicing part time.--A physician accepted
into the program practicing part time may be reimbursed an
amount directly proportional to the number of hours worked of
the total loan for physician training or no more than $75,000,
whichever is less, based upon the following repayment assistance
schedule:
(1) First year of service, 10%.
(2) Second year of service, 15%.
(3) Third year of service, 15%.
(4) Fourth year of service, 15%.
(5) Fifth year of service, 15%.
(6) Sixth year of service, 15%.
(7) Seventh year of service, 15%.
Section 6. Contract.
(a) General rule.--Physicians receiving loan forgiveness
shall enter into a contract with the agency. The contract shall
include, but not be limited to, the following terms and
conditions:
(1) The physician shall agree to practice not fewer than
ten full consecutive years in a licensed health care facility
in this Commonwealth immediately following completion of
training pursuant to the schedule provided in section 5.
(2) The physician shall agree not to discriminate
against patients based on the ability to pay.
(3) The physician shall permit the agency to monitor
compliance with the work requirement.
(4) The agency shall certify compliance of the physician
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receiving a loan forgiveness award for years subsequent to
the initial year of the loan.
(5) The contract shall be renewable on an annual basis
upon certification by the agency that the physician has
complied with the terms of the contract.
(6) The contract shall terminate if the physician dies,
is not able to perform the duties of a physician or is not
able to maintain the physician's license to practice medicine
due to physical or mental disability.
(7) If the physician's license to practice is suspended
or revoked, the agency shall have the authority to terminate
the physician's participation in the program and demand
repayment of all loan forgiveness payments rendered to date.
(8) A physician who fails to begin or complete the
obligations contracted for shall reimburse the Commonwealth
all amounts received under this act and interest thereon as
determined by the agency. Both the physician and the agency
shall make every effort to resolve conflicts in order to
prevent a breach of contract.
(b) Contract enforcement.--The agency shall have the
authority to seek garnishment of wages for the collection of
damages provided for in subsection (a)(8).
Section 7. Disqualification.
Any person who knowingly or intentionally procures, obtains
or aids another to procure or obtain loan forgiveness under this
act through fraudulent means shall be disqualified from
participation and shall be liable to the agency for an amount
equal to three times the amount obtained.
Section 8. Tax consequences.
Loan forgiveness payments received by a physician shall not
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be considered taxable income for purposes of Article III of the
act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code
of 1971.
Section 9. Regulations.
The agency shall adopt regulations and procedures necessary
to carry out the purposes of this act.
Section 10. Funding.
Loan forgiveness payments shall be made to the extent that
funds are appropriated to the Physician Retention Loan
Forgiveness Program by the General Assembly.
Section 11. Appropriation.
The sum of $10,000,000 shall be appropriated annually to
carry out the purposes of this act.
Section 30. Effective date.
This act shall take effect in 90 days.
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