Two provider groups want the White House to reintroduce a plan requiring Medicare to pay their constituencies directly for medical training costs and the costs of treating a disproportionate share of elderly patients rather than filtering that money through Medicare-certified HMOs.
Such a transfer would affect more than $10 billion in Medicare graduate medical education and disproportionate-share funds over a five-year period.
The measure is opposed by the managed-care industry, which argues that HMOs return much of the GME and disproportionate-share payments to hospitals when they contract with the facilities.
Last year, the White House proposed removing those payments from Medicare managed-care reimbursements and redirecting only 75% of the funds to teaching facilities. The remaining 25% would go toward deficit reduction.
Both the Healthcare Leadership Council and the Association of American Medical Colleges are developing their own plans for collecting and redistributing the funds.