3.3.5: Medical Education
Reduce excess payments to hospitals for medical education. Other Information:
(Saves $6 billion in 2015, $60 billion through 2020) Medicare provides supplemental funding to hospitals with teaching programs
for costs related to residents receiving graduate medical education (GME) and indirect costs (IME). The Commission recommends
bringing these payments in line with the costs of medical education by limiting hospitals’ direct GME payments to 120 percent
of the national average salary paid to residents in 2010 and updated annually thereafter by chained CPI and by reducing the
IME adjustment from 5.5 percent to 2.2 percent, which the Medicare Payment Advisory Commission has estimated would more accurately
reflect indirect costs.
Indicator(s):
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