This bill amends title XIX (Medicaid) of the Social Security Act to allow a state to establish a Health Disparities Elimination Program, through which the state shall provide incentive payments to qualified community health systems (i.e., hospitals or affiliated groups of health care providers) for approved initiatives to reduce health disparities. In selecting qualified community health systems for participation, a state shall give priority to those that: (1) have included, in their required action plans, the use of evidence-based interventions; (2) have had relevant prior experience; and (3) demonstrate a long-term commitment to serving the target populations, a need for additional financial resources, and the potential for high impact relative to the amount of funding requested.

Federal funding for program support shall be allocated based on each state's share of total federal Medicaid expenditures.