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Tax Credit for Physicians in Shortage Areas Gets AAFP Support

By News Staff
6/21/2005

The AAFP has thrown its support behind legislation that would provide a $1,000-per-month tax credit to primary health care physicians who practice in underserved areas.

The support came in a letter from AAFP Board Chair Michael Fleming, M.D., of Shreveport, La., to Sen. Conrad Burns, R-Mont., who introduced the legislation. The bill, the Health Care Access Improvement Act, S. 824, has been referred to the Senate Committee on Finance.

Rural America struggles with a "persistent and intractable shortage of physicians," said Fleming. However, Burns' bill would be a significant step toward helping alleviate the problem.

The legislation would provide the $1,000-per-month tax credit to primary care professionals for 60 months. To qualify, a family physician:

  • must provide primary care full time in a health professional shortage area during the calendar year for which the tax credit is claimed,
  • cannot be receiving scholarships or loan repayment from the National Health Service Corps or the Indian Health Service, and
  • cannot have defaulted on NHSC or IHS obligations.

"The Health Care Access Improvement Act, while not the total answer for small rural and underserved communities, is a significant policy step in the right direction," said Fleming in his June 13 letter. "By providing a considerable monetary incentive to primary care practitioners, it should favorably reduce the number of HPSAs in the nation."