January 26, 2001
Senators Introduce DGME Legislation
Sen. Dianne Feinstein (D-Calif.) and 4 other Senators introduced legislation Jan 22. that would alter the methodology by which Medicare Direct Graduate Medical Education (DGME) payments are calculated. Specifically, S.135 would increase the payment floor per resident amount. If a hospital's per resident amount is below the payment floor, its per resident amount would be increased to the floor level. The legislation does not address those hospitals with per resident amounts above the national average.
The bill increases the payment floor level from 85 percent of the locality adjusted national average in FY 2002 to 90 percent in FYs 2003 and 2004; 95 percent in FY 2005, and 100 percent in FY 2006. Currently, the FY 2001 payment floor is 70 percent of the locality adjusted national average. Under the Medicare, Medicaid and SCHIP Beneficiary Improvement and Protection Act of 2000 (BIPA) the payment floor will be from 70 percent of the locality adjusted national average per resident amount to 85 percent in FY 2002. It is estimated that BIPA will increase DGME payments for approximately 513 hospitals. Of the 513 hospitals, 216 hospitals will receive increased payments solely due BIPA's increased payment floor.
Sens. Barbara Boxer (D-Calif.), Thad Cochran (R-Miss.), Jim Jeffords (R-Vt.) and Mary Landrieu (D-La.) are original cosponsors of the legislation.
Information: Lynne L. Davis, AAMC Office of Governmental Relations, 202-828-0526.
