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SB2409
THE SENATE
S.B. NO.
2409
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to the healthcare education loan repayment program
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION
1.
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The legislature finds that a
persistent workforce shortage in the healthcare industry has created
difficulties for patients in accessing care, including specialized care such as
behavioral health services.
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One reason
providers often cite for the difficulty of practicing in Hawaii is financial
hardship, with the high cost of living frequently driving providers to leave
the State.
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The
legislature further finds that, for fiscal years 2024 and 2025, the legislature
appropriated a total of $30,000,000 to fund the healthcare education loan
repayment program.
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This program supports
healthcare professionals across most fields of practice in Hawaii by helping
them repay their educational loans in exchange for providing healthcare
services in the state.
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For fiscal years
2026 and 2027, the legislature appropriated an additional $30,000,000 to
continue this support.
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The healthcare
education loan repayment program has been successful in improving the lives of
healthcare professionals in the State and making it easier for these
professionals to remain and practice in Hawaii.
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The
legislature also finds that, since the inception of the healthcare education
loan repayment program, nine hundred twenty-eight resident healthcare
professionals have been assisted by the program.
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The average amount of indebtedness for
certain disciplines who were awarded ranges from $179,400 (physicians), $93,500
(advanced practice registered nurses), $138,400 (physician assistants),
$170,600 (psychologists), $41,300 (nurses), and $94,600 (other healthcare
professionals).
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The average loan
repayment amount for all recipients to date is $49,000.
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All participants in the healthcare education
loan repayment program are required to commit to remaining in Hawaii for two
years to work within their profession, regardless of the amount of assistance
they receive through the program.
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The
legislature believes that establishing a sliding scale of work commitments,
based on the amount of loan repayment assistance participants receive, is in
the best interest of the State.
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Healthcare professionals who receive greater loan repayment assistance
should be required to serve for a longer period in Hawaii, thereby promoting
continuity of care for residents and enabling providers to better understand
and address community needs.
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Accordingly,
the purpose of this Act is to establish minimum service requirements for
participants in the healthcare education loan repayment program receiving new
awards on or after July 1, 2027, with the duration of required service
determined by the total amount of loan repayment assistance received.
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SECTION 2.
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(a)
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Any
healthcare professional who participates in the healthcare education loan
repayment program shall be required to remain and practice within their
licensed profession in the State for a minimum period as follows:
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(1)
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No less than two years for healthcare
professionals who receive total loan repayment assistance in an amount between
$1,000 and $50,000; and
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(2)
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No less than three years for healthcare
professionals who receive total loan repayment assistance in an amount of $50,001
and above.
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(b)
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For the purposes of this section:
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"Healthcare
education loan repayment program" means the program established and funded
by the State to provide financial assistance to healthcare professionals for
repayment of educational loans incurred in pursuit of a healthcare degree or
credential, in exchange for a commitment to practice in Hawaii for a specified
period.
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"Healthcare
professional" means an individual who is licensed, certified, or otherwise
authorized under the laws of the State to provide healthcare services,
including but not limited to physicians, physician assistants, advanced
practice registered nurses, nurses, psychologists, and other allied health care
providers.
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"Licensed
profession" means the healthcare occupation or field in which a healthcare
professional is authorized to practice under the laws and regulations of the
State.
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"Loan
repayment" means funds provided to a healthcare professional under the
healthcare education loan repayment program for the purpose of repaying
outstanding educational loans related to their health care training.
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SECTION 3.
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This Act shall take effect on July 1, 2027.
INTRODUCED BY:
_____________________________
Report Title:
Healthcare
Education Loan Repayment Program; Healthcare Professionals; Minimum Service
Requirements
Description:
Requires
a participant in the Healthcare Education Loan Repayment Program to remain and
work in the State for a certain number of years based on the amount of
financial assistance received.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.