Nebraska Proposes to Eliminate
Medicaid GME and IME Payments
July 19, 2002 - Nebraska's Department of Health and
Human Services Finance and Support is proposing changes to
its Administrative code regulations that would eliminate "direct
and indirect medical education payments" to teaching
hospitals under the Nebraska Medicaid program. The AAMC is
drafting a letter in opposition to Nebraska eliminating such
Medicaid payments, outlining how the payments are critical
to ensure teaching hospitals' missions and special services.
According to a notice announcing a public hearing, "the
department is proposing these changes as part of the budget
cuts being made in response to higher than expected shortfalls
in state revenues." In addition, the notice says "the
State does not consider indirect medical costs and direct
medical costs to be required services under its Nebraska Medicaid
inpatient hospital program."
Many state Medicaid programs in addition to Nebraska follow
Medicare's lead and make special payments to teaching hospitals.
According to a 1998 survey conducted by the National Conference
of State Legislatures for the AAMC, nearly all states (45)
and the District of Columbia make some level of special payments
to teaching hospitals under the Medicaid program.
As the department is accepting comments for the July 25 hearing,
the AAMC is drafting a letter in opposition to Nebraska eliminating
the Medicaid DGME and IME payments. Written comments must
be postmarked or received by 5:00 p.m. Central Time on July
27, 2002, and should be sent to the Dept. of HHS Regulation
and Licensure, Regulatory Analysis and Integration Division,
301 Centennial Mall South, P.O. Box 95007, Lincoln, NE 68509,
fax 402-471-0555, or e-mailed.
Lynne Davis Boyle, Assistant Vice President
AAMC Government Relations
ldavisboyle@aamc.org
(202) 828-0526
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