center as defined in section 1861(aa)(4) of the Social Se-
curity Act. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to carry out this section, 
such sums as may be necessary for each of fiscal years 
2007 through 2015.’’. 
SEC. 403. GRANTS FOR TECHNICAL ASSISTANCE. 
Part P of title III of the Public Health Service Act 
(42 U.S.C. 280g et seq.), as amended by section 402, is 
further amended by adding at the end the following: 
‘‘SEC. 399Q. GRANTS FOR TECHNICAL ASSISTANCE IN IM-
PROVING QUALITY. 
‘‘(a) IN GENERAL.—If a health center reporting data 
described in section 399P(a)(1)(A) for 3 or more years 
has demonstrated no improvement or a decrease in 
healthcare quality on at least 30 percent of all quality 
measures as designated under section 401(a) of the 
Faircare Act, such health center shall be given priority 
to receive technical assistance from the Bureau of Primary 
Health Care within the Health Resources and Services Ad-
ministration. 
‘‘(b) TYPE OF ASSISTANCE.—The type of technical 
assistance that may be provided under subsection (a) shall 
be determined by the Bureau of Primary Health Care and
may include competitively awarded grants and other forms 
of assistance. 
‘‘(c) USE
OF
ASSISTANCE.—Assistance provided 
under this section shall be used by the health center to 
improve healthcare quality or reduce healthcare dispari-
ties. 
‘‘(d) DEFINITION.—For purposes of this section, the 
term ‘health center’ means a Federally qualified health 
center as defined in section 1861(aa)(4) of the Social Se-
curity Act. 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
is authorized to be appropriated to carry out this sub-
section, such sums as may be necessary for each of fiscal 
years 2007 through 2015.’’. 
SEC. 404. HEALTH DISPARITY COLLABORATIVES. 
(a) IN GENERAL.—The Bureau of Primary Health 
Care within the Health Resources and Services Adminis-
tration shall— 
(1) provide technical assistance and funding to 
the Health Disparity Collaboratives; and 
(2) expand the provision of technical assistance 
and funding, at the discretion of the Bureau, to pri-
ority areas designated by the Agency for Healthcare 
Research and Quality in consultation with the Advi-
sory Committee established under section 925 of the 
Public Health Service Act. 
(b) FUNDING.—The Bureau of Primary Health Care 
within the Health Resources and Services Administration 
shall continue to fund collaboratives with a goal of adding 
at least 50 new health centers each year. 
(c) DEFINITION.—For purposes of this section, the 
term ‘health center’ means a Federally qualified health 
center as defined in section 1861(aa)(4) of the Social Se-
curity Act. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section, 
such sums as may be necessary for each of fiscal years 
2005 through 2015. 
TITLE V—REACH 2010 
SEC. 501. EXPANSION OF REACH 2010. 
(a) IN GENERAL.—The Secretary of Health and 
Human Services, acting through the Director of the Cen-
ters for Disease Control and Prevention, shall award 
grants and carry out other activities to expand the Racial 
and Ethnic Approaches to Community Health Program 
(REACH 2010) program to support coalitions in all 50 
States and territories. 
(b) ELIGIBILITY.—To be eligible to receive a grant 
under this section an entity shall—
(1) be a coalition that is comprised of, at a 
minimum, a community-based organization and at 
least 3 other organizations, one of which is either a 
State or local health department or a university or 
research organization; and 
(2) prepare and submit to the Secretary of 
Health and Human Services an application at such 
time, in such manner, and containing such informa-
tion as the Secretary may require. 
(c) USE OF GRANTS.—Amounts provided under a 
grant under this section shall be used to support commu-
nity coalitions in designing, implementing, and evaluating 
community-driven strategies to eliminate health dispari-
ties, with an emphasis on African Americans, American 
Indians, Alaska Natives, Asian Americans, Hispanic 
Americans, and Pacific Islanders. 
(d) PRIORITY AREAS.—In carrying out the Racial 
and Ethnic Approaches to Community Health Program 
(REACH 2010) program, the Director of the Centers for 
Disease Control and Prevention shall include the following 
priority areas: 
(1) Cardiovascular disease. 
(2) Immunizations. 
(3) Breast and cervical cancer screening and 
management.
(4) Diabetes. 
(5) HIV/AIDS. 
(6) Infant mortality. 
(7) Asthma. 
(8) Obesity. 
(8) At the discretion of the Director of the Cen-
ters for Disease Control and Prevention, any addi-
tional priority areas determined appropriate by the 
Agency for Healthcare Research and Quality in con-
sultation with the Advisory Committee established 
under section 925 of the Public Health Service Act. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section and 
the Racial and Ethnic Approaches to Community Health 
Program (REACH 2010) program, $200,000,000 for each 
of fiscal years 2005 to 2007, and such sums as may be 
necessary for each of fiscal years 2008 through 2015. 
TITLE VI—MALPRACTICE 
INSURANCE RELIEF 
SEC. 601. REFUNDABLE TAX CREDIT FOR THE COST OF 
MALPRACTICE 
INSURANCE 
FOR 
CERTAIN 
PROVIDERS. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to refundable credits) is amended by redes-
ignating section 36 as section 37 and by inserting after 
section 35 the following new section: 
‘‘SEC. 36. CERTAIN MALPRACTICE INSURANCE COSTS. 
‘‘(a) IN GENERAL.—In the case of an eligible health 
care provider, there shall be allowed as a credit against 
the tax imposed by this subtitle for the taxable year an 
amount equal to the applicable percentage of qualified 
malpractice insurance expenditures paid or incurred dur-
ing the taxable year. 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The applicable percentage 
shall be— 
‘‘(A) 10 percent for any taxable year for 
which the person claiming the credit is an eligi-
ble health care provider, plus 
‘‘(B) 5 percent for each consecutive prior 
taxable year ending after the date of enactment 
of this section for which such person was an eli-
gible health care provider. 
‘‘(2) LIMITATION.—The applicable percentage 
shall not exceed 25 percent. 
‘‘(c) ELIGIBLE HEALTH CARE PROVIDER.—For pur-
poses of this section, the term ‘eligible health care pro-
vider’ means—
‘‘(1) a public or private nonprofit hospital 
which is— 
‘‘(A) located in a medically underserved 
area (as defined in section 1302(7) of the Pub-
lic Health Service Act) or in a health profes-
sional shortage area (as designated under sec-
tion 332 of the Public Health Service Act), and 
‘‘(B) designated as a Level I Faircare Hos-
pital under section 339P of the Public Health 
Service Act or section 1898 of the Social Secu-
rity Act for the year in which such hospital’s 
taxable year ends, and 
‘‘(2) a physician for whom not less than 66 per-
cent of the practice for the taxable year is at a facil-
ity described in paragraph (1). 
‘‘(d) QUALIFIED MEDICAL MALPRACTICE INSUR-
ANCE EXPENDITURE.—The term ‘qualified medical mal-
practice insurance expenditure’ means so much of any pro-
fessional insurance premium, surcharge, payment or other 
cost or expense required as a condition of State licensure 
which is incurred by an eligible health care provider in 
a taxable year for the sole purpose of providing or fur-
nishing general medical malpractice liability insurance for 
such eligible health care provider.’’.
(b) DENIAL OF DOUBLE BENEFIT.—Section 280C of 
the Internal Revenue Code of 1986 (relating to certain 
expenses for which credits are allowable) is amended by 
adding at the end the following new subsection: 
‘‘(d) CREDIT FOR MEDICAL MALPRACTICE LIABILITY 
INSURANCE PREMIUMS.— 
‘‘(1) IN GENERAL.—No deduction shall be al-
lowed for that portion of the qualified medical mal-
practice insurance expenditures otherwise allowable 
as a deduction for the taxable year which is equal 
to the amount of the credit allowable for the taxable 
year under section 36. 
‘‘(2) CONTROLLED GROUPS.—In the case of a 
corporation which is a member of a controlled group 
of corporations (within the meaning of section 
41(f)(5)) or a trade or business which is treated as 
being under common control with other trades or 
business 
(within 
the 
meaning 
of 
section 
41(f)(1)(B)), this subsection shall be applied under 
rules prescribed by the Secretary similar to the rules 
applicable under subparagraphs (A) and (B) of sec-
tion 41(f)(1).’’. 
(c) CONFORMING AMENDMENT.—Paragraph (2) of 
section 1324(b) of title 31, United States Code, is amend-
ed by inserting before the period ‘‘or from section 36 of 
such Code’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by strik-
ing the item related to section 36 and inserting the fol-
lowing new items: 
‘‘Sec. 36. Certain malpractice insurance costs. 
‘‘Sec. 37. Overpayments of tax.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures incurred after De-
cember 31, 2005. 
(f) AVAILABILITY OF CREDIT FOR TAX EXEMPT OR-
GANIZATIONS.—The Secretary of the Treasury shall ad-
minister the credit allowable under section 36 of the Inter-
nal Revenue Code of 1986 (as added by this section) in 
such a manner so as to minimize to the largest extent pos-
sible the administrative burden on tax exempt organiza-
tions claiming the credit. 
SEC. 602. GRANTS TO NON-PROFIT HOSPITALS. 
(a) IN GENERAL.—The Secretary of Health and 
Human Services, acting through the Administrator of the 
Health Resources and Services Administration, shall 
award grants to eligible entities to assist such entities in 
defraying qualified medical malpractice insurance expendi-
tures.
(b) ELIGIBILITY.—To be eligible to receive a grant 
under subsection (a), an entity shall— 
(1) be a Faircare Level I non-profit hospital (as 
determined under section 1898(b) of the Social Se-
curity Act) in the preceding fiscal year; 
(2) not be eligible to claim the tax credit under 
section 36 of the Internal Revenue Code of 1986; 
(3) prepare and submit to the Secretary of 
Health and Human Services an application at such 
time, in such manner, and containing such informa-
tion as the Secretary may require. 
(c) AMOUNT OF GRANT.—The amount of a grant 
awarded to an eligible entity under this section shall be— 
(1) with respect to the first year of the grant, 
an amount equal to 10 percent of the qualified med-
ical malpractice insurance expenditures of the entity 
for the year; 
(2) with respect to the second year of the grant, 
an amount equal to 15 percent of the qualified med-
ical malpractice insurance expenditures of the entity 
for the year; 
(3) with respect to the third year of the grant, 
an amount equal to 20 percent of the qualified med-
ical malpractice insurance expenditures of the entity 
for the year; and
(4) with respect to the fourth and subsequent 
years of the grant, an amount equal to 25 percent 
of the qualified medical malpractice insurance ex-
penditures of the entity for the year. 
(d) DEFINITION.—In this section, the term ‘‘qualified 
medical malpractice insurance expenditure’’ has the mean-
ing given such term in section 36(d) of the Internal Rev-
enue Code of 1986. 
SEC. 603. GRANTS FOR RESEARCH INTO QUALITY OF CARE 
AND MEDICAL ERRORS. 
(a) IN GENERAL.—The Secretary of Health and 
Human Services shall award grants to eligible entities to 
study the relationship between institutions that are des-
ignated as Faircare hospitals under section 1898(b) of the 
Social Security Act and medical errors or the rate of 
claims of malpractice. 
(b) ELIGIBILITY.—To be eligible to receive a grant 
under subsection (a), an entity shall prepare and submit 
to the Secretary of Health and Human Services an appli-
cation at such time, in such manner, and containing such 
information as the Secretary may require.
SEC. 604. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated to carry out 
this title, such sums as may be necessary for each of fiscal 
years 2005 through 2015. 
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