State Creates Loan Repayment Program for Medicaid Doctors, Dentists
January 18, 2009
Once the program is fully implemented, it will provide loan repayments for up to 1,200 physicians and dentists a year. Each doctor will be eligible for up to $140,000 in loan repayments over four years if they meet targets for services provided to children on Medicaid.
Written by Stephanie Goodman, Texas Health and Human Services
AUSTIN ? A new loan repayment program will help Texas increase the number of doctors, dentists and specialists who provide care for children with Medicaid coverage.
The new program, which will begin in March, is among the initiatives funded from $150 million set aside by the 2007 Texas Legislature to make it easier for children with Medicaid coverage to get medical and dental services. The funding is part of the Legislature’s $1.8 billion plan to increase Medicaid rates and the availability of services in response to the Frew v. Hawkins lawsuit over utilization of preventive services in children’s Medicaid.
Once the program is fully implemented, it will provide loan repayments for up to 1,200 physicians and dentists a year. Each doctor will be eligible for up to $140,000 in loan repayments over four years if they meet targets for services provided to children on Medicaid.
“This program is an innovative way to address the root cause of one of our greatest challenges – the lack of doctors taking Medicaid and an overall lack of pediatric specialists,” said Texas Health and Human Services Executive Commissioner Albert Hawkins. “This will help Texas recruit and retain new doctors, especially in hard to serve areas. It will be the first loan repayment program in the nation to specifically target specialists who treat children.”
The program will enroll up to 300 doctors and dentists a year, and the state may prioritize the applications based on particular specialties or locations.
The loan repayment program is expected to cost about $300,000 in state funding this fiscal year, with the cost growing to $42.6 million a year once the program achieves the maximum number of participants after four years.
Doctors will be able to apply for the loan repayment program starting in March. Applications will be accepted year round with new participants selected each June. The loan repayments will be made through the Texas Higher Education Coordinating Board.
The project is one of 13 projects reviewed and recommended for funding by a 17-member advisory committee that includes health experts and advocates from across the state. The funding was approved by the Governor’s Office and the Legislative Budget Board.
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