Loan Forgiveness Bills for Healthcare Workers Advance

February 24, 2022

The House Health Finance & Policy Committee heard several bills recently focused on increasing spending for the state’s loan forgiveness programs for healthcare workers who practice in underserved areas.  

The four bills deal with programs for physicians, nurse practitioners, mental health professionals, acupuncture practitioners, and long-term care workers. 

One bill, HF1310 (Rep. John Huot-DFL, Rosemount), increases funding for the physician and midlevel provider programs by $1 million each year. Cybill Oragwu, MD, a family medicine physician from Long Prairie, testified in support of the bill, stressing that there is a rural physician shortage that has been growing for many years.   

“According to the Office of Rural Health and Primary Care (ORHPC), only one in five providers practice anywhere outside the urban areas of the Twin Cities, Rochester, Duluth, St. Cloud or Moorhead,” Oragwu said. “And combined with the fact that rural physicians tend to be older than those practicing in urban settings, we have a potential crisis brewing.” 

The ORHPC reports that over the last 10 years, 67% of providers who have received loan forgiveness practice in rural areas, versus only 17% of providers who have not. More than 30% of those recipients are still practicing in rural areas after the program is over. This compares to just 5% of all providers who practice in rural areas. 

The four bills received support from members of the committee and were laid over for possible inclusion in the Health and Human Services omnibus bill that will be compiled later. Gov. Tim Walz also includes increased funding for healthcare worker loan forgiveness in his budget.