Family physicians across the country could win significant tax relief if their states adopted a New Jersey law endorsed by the Council of State Governments as suggested state legislation for the 2007 legislative cycle.
Health Enterprise Zone Law Becomes Model for Others
By Leslie Champlin
12/21/2005
By designating the law, known as Chapter 139, (PDF file: 2 pages / 10.1 KB. More about PDFs.) as suggested state legislation, the CSG is effectively promoting it as a solution to one of states' most intransigent problems: ensuring access to health care for constituents in medically underserved areas.
Chapter 139 has offered New Jersey a win-win solution to the state's struggle to recruit and retain a primary care workforce in rural and urban areas, according to New Jersey AFP Executive Vice President Ray Saputelli. The law maintains access to care for low-income and Medicaid patients by helping physicians remain financially viable, he said.
"The single most asked question we received from state legislators is, 'How can we attract family physicians to our state?'" said Diana Ewert, AAFP senior manager of state government relations, of conversations with lawmakers attending a recent CSG convention. New Jersey's law provides a positive answer, she said.
Chapter 139 has offered New Jersey a win-win solution to the state's struggle to recruit and retain a primary care workforce in rural and urban areas, according to New Jersey AFP Executive Vice President Ray Saputelli. The law maintains access to care for low-income and Medicaid patients by helping physicians remain financially viable, he said.
"The single most asked question we received from state legislators is, 'How can we attract family physicians to our state?'" said Diana Ewert, AAFP senior manager of state government relations, of conversations with lawmakers attending a recent CSG convention. New Jersey's law provides a positive answer, she said.
Health Enterprise Zones
Chapter 139 establishes health enterprise zones -- defined as areas designated by the state as medically underserved -- that grant income tax relief on Medicaid payments to physicians who practice in those areas. It also allows cities to adopt ordinances that grant property tax relief to physician practices in health enterprise zones.
That latter provision has spurred political activism on the local level. New Jersey FPs have begun working with their city councils to pass health enterprise zone ordinances that implement property tax exemptions for physician office buildings in underserved areas.
"This is a huge, huge help" to family physicians who serve Medicaid patients, said Saputelli. "One of our (New Jersey) legislators said that, if they couldn't raise the Medicaid rates, at least they could help doctors serving these communities" by reducing practice costs.
That latter provision has spurred political activism on the local level. New Jersey FPs have begun working with their city councils to pass health enterprise zone ordinances that implement property tax exemptions for physician office buildings in underserved areas.
"This is a huge, huge help" to family physicians who serve Medicaid patients, said Saputelli. "One of our (New Jersey) legislators said that, if they couldn't raise the Medicaid rates, at least they could help doctors serving these communities" by reducing practice costs.
Growth of a Good Idea
Passage of Chapter 139 grew from a single member's idea, said Saputelli. That member watched the success of enterprise zones for other business communities and thought the concept could be adapted to medical care.
"It was an idea of one member who brought the concept to the chapter," said Saputelli. "We looked at ways we could help draft legislation that would work for us."
The CSG recommendation that Chapter 139 become suggested legislation for other states reflects the success of growing outreach to work with state officials and lawmakers, said Ewert.
"Here's an example of a chapter that had a need in their area and worked to craft legislation that addressed that need," she said. "The solution that was enacted was so innovative and progressive that the Council of State Governments has adopted it as suggested legislation for other states to look at if they're in the same position."
"It was an idea of one member who brought the concept to the chapter," said Saputelli. "We looked at ways we could help draft legislation that would work for us."
The CSG recommendation that Chapter 139 become suggested legislation for other states reflects the success of growing outreach to work with state officials and lawmakers, said Ewert.
"Here's an example of a chapter that had a need in their area and worked to craft legislation that addressed that need," she said. "The solution that was enacted was so innovative and progressive that the Council of State Governments has adopted it as suggested legislation for other states to look at if they're in the same position."
