April 27, 2001

Legislation Would Freeze IME, Update PPS Payments

On April 24, Reps. Mark Foley (R-Fla.) and Richard Neal (D-Mass.) introduced H.R. 1556, the "American Hospital Preservation Act of 2001." The proposal would maintain the current Medicare Indirect Medical Education (IME) payment at 6.5 percent in FY 2002 and thereafter. It would also provide a full inflation update for Medicare inpatient services in FY 2002 and FY 2003.

The proposal would amend last year's Benefits Improvement and Protection Act (BIPA), which had established the IME payment at 6.5 percent for FY 2001 and FY 2002, but then reduced the payment to 5.5 percent in FY 2003. BIPA had also provided a full market basket (MB) update in FY 2001, but reduced the MB by 0.55 percent in FY 2002 and FY 2003.

Similar legislation is expected in the Senate. Freezing IME payments and updating PPS payments is the major Medicare legislative priority for the AAMC this year.

Information: Lynne L. Davis or Christiane Mitchell, AAMC Office of Governmental Relations, 202-828-0526.