Reduce excess payments to hospitals for medical education.

Medicare provides supplemental funding to hospitals that have teaching programs for residents receiving graduate medical education. I support 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.

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