Medics' aid may get tax shield

WASHINGTON — Many doctors and nurses pay federal income taxes on the student loan assistance they receive for setting up shop in rural parts of Nebraska that face shortages of health professionals.

That would end under a bill introduced Wednesday by Sen. Ben Nelson, D-Neb.

Nebraska has an incentive program to encourage health professionals to take up rural jobs, but they have to pay taxes as if the assistance were income, which undermines the effectiveness of the incentives. Nelson's bill would extend tax-exempt status to those in the program.

"Today, when so many Americans are struggling with the high cost of health care and with access to health care, we don't need this roadblock," Nelson said.

"We must ensure those living in areas with a health care shortage are provided better access to the services they need," said Sen. Mike Johanns, R-Neb., who co-sponsored the legislation.

• Contact the writer: 202-662-7270, joe.morton@owh.com