A bill that would create a loan repayment program for medical residents was considered by the Health and Human Services Committee Feb. 20.<\/p>\n
LB196, introduced by Lincoln Sen. Kathy Campbell, would amend the Rural Health Systems and Professional Incentive Act by creating a resident loan repayment program. Campbell said the program would serve as an incentive to medical residents to practice their specialties in designated shortage areas in Nebraska.<\/p>\n
Under the bill, a qualified applicant must be enrolled or accepted in an approved medical specialty residency program in Nebraska and agree to one year of full-time practice in a designated health profession shortage area. The medical resident also would be required to accept Medicaid patients in his or her practice.<\/p>\n
Loan repayment would be limited to $40,000 per each year of residency, not to exceed $120,000 per recipient. A resident who did not adhere to the terms of the act would be required to repay the state 150 percent of the outstanding loan principal at an 8 percent annual interest rate from the date of default.<\/p>\n
Campbell said adding residents to the state\u2019s health care provider incentive program would help Nebraska create a stronger health care system.<\/p>\n
\u201c[The] chief goal is to create an incentive for health professionals to practice in shortage areas,\u201d she said.<\/p>\n
Rowen Zetterman of the Nebraska Medical Association testified in support of the bill, saying a loan program would make Nebraska more competitive when recruiting medical residents. The ability to begin tackling student loan debt while in residency translates to a significant savings in interest over time, he said.<\/p>\n
\u201cMost people don\u2019t start paying back during residency because they can\u2019t afford it,\u201d Zetterman said, \u201cso the total just increases.\u201d<\/p>\n
The bill also would increase the financial assistance limits of two existing programs under the act.<\/p>\n
Limits on student loans would increase from $20,000 to $30,000 per year, not to exceed $120,000 for medical, dental or doctoral-level mental health students. Limits on loan repayment for physicians, dentists and psychologists would increase from $20,000 to $30,000 per year of full-time practice in a designated health profession shortage area, not to exceed $90,000 per recipient.<\/p>\n
Loan repayment limits would increase from $10,000 to $15,000 per year, not to exceed $45,000 per recipient, for physician assistants, nurse practitioners, pharmacists, physical therapists, occupational therapists and mental health practitioners.<\/p>\n
Justin Shirk, a third year dental student at the University of Nebraska Medical Center, testified in support of raising the limits on current incentive programs. Dentists graduate with an average of $200,000 in debt, he said, and the average cost of purchasing a practice is $300,000 to $500,000.<\/p>\n
In addition, he said, opening a rural practice is not lucrative because the patient populations often are self-employed and without dental insurance.<\/p>\n
\u201cMy classmates and I are looking at some pretty staggering [amounts] of indebtedness,\u201d Shirk said. \u201cHaving this bill in place would make a rural practice more attractive.\u201d<\/p>\n
No one testified in opposition to the bill and the committee took no immediate action on it.<\/p>\n","protected":false},"excerpt":{"rendered":"
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