Katrina Health Access, Recovery, and Empowerment Act of 2006

Katrina Health Access, Recovery, and Empowerment Act of 2006 - Requires the Secretary of Health and Human Services to provide low-interest loans to small business concerns located in a Hurricane Katrina-affected area for the restoration of health care and health care services.

Provides for tax credits, deductions, and grants for medical malpractice insurance and medical liability insurance for providers located in such areas.

Amends the Public Health Service Act to require the Secretary to make payments from the Health Safety Net Infrastructure Trust Fund (established under this Act) for capital financing assistance to eligible health care facilities located in such an area for replacement, modernization and renovation projects, and capital equipment acquisition.

Requires the Secretary to enter into cooperative agreements to enable higher education institutions in such an area to resume health care-related programs.

Requires the Secretary, acting through the Administrator of the Health Resources and Services Administration (HRSA) and the Director of the Office of Minority Health, to designate as medically needy Katrina recovery zones areas located in a Hurricane Katrina-affected area that experience disproportionate racial and ethnic disparities in health status and health care.

Provides for grants to: (1) such recovery zones; (2) public health facilities for constructing, modernizing, or repairing health facilities damaged as a result of Hurricane Katrina; and (3) organizations in a Hurricane Katrina-affected area seeking to improve health of minorities and reduce health disparities.

Requires states to provide Disaster Relief Medicaid Assistance to Katrina survivors as a condition of participation in the Medicaid program.