Relates to funds used for the physician loan repayment program and the regents physicians loan forgiveness program for physicians practicing in designated physician shortage areas and creates the medical malpractice rate relief program within the regents physician loan forgiveness program in designated physician shortage areas.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5438
SPONSOR: Palmesano (MS)
 
TITLE OF BILL:
An act to amend the education law, in relation to funds used in the
physician loan repayment program and the regents physician loan forgive-
ness program for physicians practicing in designated physician shortage
areas
 
PURPOSE OR GENERAL IDEA OF BILL:
To expand the Regents Physician Loan Forgiveness Program, and also
designate that a portion of the Program be dedicated to physicians that
practice in designated physician shortage areas in counties with less
than 160,000. Additionally, this program would be expanded to include
medical malpractice insurance rate relief to the eligible physicians,
whose eligibility is set forth by the Commissioner of Health, who prac-
tice in areas that are designated as having physician shortages by the
Commissioner of Health.
 
SUMMARY OF PROVISIONS:
Section 1 amends Section 677 of the Education Law by adding a new subdi-
vision 4 establishing the medical malpractice rate relief program. This
program would entitle physicians practicing in designated physician
shortage areas in counties with less than 160,000 people to medical
malpractice rate relief in an amount determined by the commissioner of
health.
Section 2 amends Section 677 -a of the Education Law by renumbering its
subdivision 4 as subdivision 5 and adding a new subdivision 4 that
mandates that a minimum of twenty-five percent of all funds in the
physician loan repayment program be dedicated to physicians practicing
in designated physician shortage areas in counties with less than
160,000 people.
 
JUSTIFICATION:
New York State faces an ever increasing crisis of shortages of physi-
cians for both primary care physicians and in specialty areas, especial-
ly in rural areas of New York. Physicians are either retiring or leaving
the State to practice elsewhere. Two of the reasons for this exodus are
the ability to make more money elsewhere and lower medical malpractice
rates. This legislation will target physician shortages in rural areas
of the State by providing relief to physicians in the form of targeted
loan forgiveness and medical malpractice rate relief.
 
PRIOR LEGISLATIVE HISTORY:
2022 A.5050 - held in higher education
2020 A.3698 - held for consideration in Higher Education
2018 A.4187- held for consideration: Higher Education Committee
2017 A.4187- referred to Higher Education Committee
2016 A.4780- held for consideration: Higher Education Committee
2015 A.4780- referred to Higher Education Committee
2014 A.4780- held for consideration: Higher Education Committee
2012 A.7396- held for consideration: Higher Education Committee
2010 A.5252- held for consideration: Higher Education Committee
2008 A.9660- held for consideration: Higher Education Committee
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Subject to appropriation.
 
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
5438
2023-2024 Regular Sessions
IN ASSEMBLY
March 10, 2023
___________
Introduced by M. of A. PALMESANO, BLANKENBUSH, BRABENEC, J. M. GIGLIO,
GOODELL, LEMONDES, MANKTELOW, MORINELLO, SAYEGH, TAGUE, WALSH --
Multi-Sponsored by -- M. of A. BYRNES, DiPIETRO, HAWLEY, MILLER, REIL-
LY -- read once and referred to the Committee on Higher Education
AN ACT to amend the education law, in relation to funds used in the
physician loan repayment program and the regents physician loan
forgiveness program for physicians practicing in designated physician
shortage areas
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 677 of the education law is amended by adding a new
2 subdivision 4 to read as follows:
3 4. Medical malpractice rate relief program. a. Physicians practicing
4 in designated physician shortage areas in counties with a population of
5 less than one hundred sixty thousand, according to the decennial census
6 of two thousand, shall be awarded medical malpractice rate relief in an
7 amount to be determined by the commissioner of health.
8 b. The commissioner of health shall promulgate rules and regulations
9 regarding program guidelines and the eligibility requirements for physi-
10 cians.
11 § 2. Subdivision 4 of section 677-a of the education law is renumbered
12 subdivision 5 and a new subdivision 4 is added to read as follows:
13 4. Physicians practicing in designated physician shortage areas. a. A
14 minimum of twenty-five percent of all funds used in this program shall
15 be dedicated to physicians practicing in designated physician shortage
16 areas in counties with a population of less than one hundred sixty thou-
17 sand, according to the decennial census of two thousand.
18 b. Any undistributed amounts remaining from paragraph a of this subdi-
19 vision shall be available for distribution by the president for the
20 physician loan repayment program pursuant to subdivisions one, two and
21 three of this section.
22 § 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08467-01-3