Nebraska Rejects Attempt
to Eliminate Medicaid GME and IME Payments
August 30, 2002-Nebraska's state legislature rejected
the state Department of Health and Human Services Finance
and Support's administrative efforts to eliminate "direct
and indirect medical education payments" to teaching
hospitals under the Nebraska Medicaid program.
In a special budget session, the state legislature Aug. 12
approved an amendment to appropriations legislation that would
continue to fund the GME and IME payments. The bill was signed
into law on Aug. 15. The language states, "it is the
intent of the Legislature that the Department of Health and
Human Services Finance and Support continue to provide Medicaid
reimbursement of Indirect Medical Education (IME) costs and
Direct Medical Education (DME) costs and continue to provide
payments to disproportionate share hospitals (DSH)…."
The language also requires the Department to report to the
Governor and legislature on or before June 3, 2003 on the
progress of approving additional payment mechanisms to support
such funding.
In July, the department had proposed elimination of Medicaid
GME and IME payments as part of the budget cuts being made
in response to higher than expected shortfalls in state revenues.
The department held a hearing on the issue July 25 and the
AAMC sent a letter in opposition to Nebraska eliminating such
Medicaid payments. The letter outlined how the payments are
critical to ensure teaching hospitals' missions and special
services.
Information:
Lynne Davis Boyle, Assistant Vice President
AAMC Office of Governmental Relations
ldavisboyle@aamc.org
(202) 828-0526
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