Department of Veterans Affairs Primary Care Providers Incentive Act of 1998

Department of Veterans Affairs Primary Care Providers Incentive Act of 1998 - Directs the Secretary of Veterans Affairs, as part of the Department of Veterans Affairs Educational Assistance Program (EAP), to carry out a scholarship program for Department employees enrolled in a field of education or training in the health professions. Requires participating employees to be employed for at least two years and to demonstrate financial need. Requires scholarship priority to be given to: (1) applicants pursuing a field relating to the provision of primary health care services; and (2) applicants employed at Department health-care facilities in rural areas or at which there is an inadequate supply of qualified health-care personnel. Requires an agreement between the Secretary and the participant under which the scholarship is provided in return for the agreement to serve as a full-time employee in the Department's Veterans Health Administration (VHA) for one year for each year in which the scholarship is provided, but for not less than two years. Prohibits individual scholarship payments from exceeding $10,000 in any one year and from continuing for more than three years. Allows up to a six-year period for part-time students. Sets forth provisions concerning: (1) Federal employee status of participants; (2) determination of the service commencement date; and (3) liability for breach of the service agreement. Prohibits the Secretary from furnishing such scholarships after December 31, 2001. Authorizes the Secretary to carry out as part of the EAP a program to be known as the Department of Veterans Affairs Primary Care Workers Education Debt Reduction Program under which financial assistance shall be provided to personnel serving in health-care positions in the VHA to reduce the debt incurred in completing programs of education or training for such service. Directs the Secretary to give priority preference under such Program to: (1) individuals recently appointed in fields relating to primary care health services; (2) individuals recently appointed in fields in which the recruitment or retention of an adequate supply of qualified health-care personnel is difficult; and (3) any other individuals serving in either of such fields. Defines "recently appointed" as appointed within six months. Allows such payments only if the individual maintains an acceptable level of performance during the payment period. Provides maximum payment amounts of $6,000, $8,000, and $10,000 for the first, second, and third years, respectively. Prohibits any such payments after December 31, 2001. Repeals a provision of the Veterans Health Care Act of 1992 which prohibits payments of tuition loans on behalf of VHA employees. Directs the Secretary to notify Department employees of the benefits available under both the Scholarship and Debt Reduction Programs.