Pa. House bill would pay for med students’ loans

Medical students studying in Pennsylvania now have a greater incentive to stay in the state… Medical students studying in Pennsylvania now have a greater incentive to stay in the state after graduation. If passed, a bill before the Pennsylvania House of Representatives would forgive a doctor’s medical school loans if he or she stays in Pennsylvania for at least 10 years after graduation.

House Bill 1093 was proposed by Rep. Josh Shapiro, D-Montgomery, in order to help Pennsylvania retain new doctors and replenish its ranks of existing doctors.

“Our current system of doctors in Pennsylvania is like a veteran baseball team without a farm club,” Shapiro said. “Forty-one percent of doctors in our state will retire within 10 years and only three percent of our doctors are under 35.”

According to Shapiro, only 8 percent of Pennsylvania medical school students stay here after graduation.

The bill proposes to increase that percentage by alleviating the sizeable debt inherent in medical school tuition, which can often run upwards of $100,000.

According to an American Medical Association survey, “Students with high debt are less likely to pursue family practice, instead seeking more high-paying specialties. In addition, the high cost of tuition can discourage students from low-income backgrounds from attending medical school,” the survey found.

The bill, which has had broad, bipartisan support will be put to a vote in the House this week and would take effect immediately if passed. The program is expected to eventually cost approximately $20 million a year.

Former President of the Pennsylvania Medical Society Carol Rose applauds the bill for creating an incentive for doctors to stay in Pennsylvania.

“It is admirable that somebody is trying to do something to keep doctors in the state. Pennsylvania invests a great deal of money in training residents, and that investment is lost if they continue leaving the state to practice elsewhere,” Rose said.

According to the Association of American Medical Colleges, the average educational debt of a graduating medical student in the class of 2006 was $130,571, an 8.5 percent increase since 2005.

But while forgiving their loans might help keep new doctors in Pennsylvania, low Medicare reimbursement rates will continue to push them away.

The Pennsylvania Medical Society estimates that from 2006 to 2014, Pennsylvania Medicare payments will fall an average of $18,000 per physician.

Rose said that graduating medical students will have to decide for themselves if debt relief outweighs increased income.

“In Pennsylvania, reimbursement for care is low compared to other states,” Rose said. “Graduating students will have to compare the benefits of a free medical education with the disadvantages of low reimbursements, and see which option will best suit them in the long run.”

Rep. Shapiro said he realizes that this bill is not a panacea for the health-care problems in Pennsylvania. In addition to low reimbursements, many physicians are deterred by Pennsylvania’s malpractice insurance rates, which are some of the highest in the nation.

“While this bill does not specifically address malpractice insurance and other issues that our state’s health-care industry face, I believe that it is a step in the right direction,” Shapiro said.

“Ten years ago, over 50 percent of our medical school graduates stayed in Pennsylvania. Hopefully this bill will offer an incentive to more graduates to stay.”