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<bill bill-stage="Introduced-in-Senate" dms-id="A1" public-private="public">
	<form>
		<distribution-code display="yes">II</distribution-code>
		<congress>111th CONGRESS</congress>
		<session>2d Session</session>
		<legis-num>S. 3957</legis-num>
		<current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber>
		<action>
			<action-date date="20101117">November 17, 2010</action-date>
			<action-desc><sponsor name-id="S259">Mr. Reed</sponsor> (for himself
			 and <cosponsor name-id="S316">Mr. Whitehouse</cosponsor>) introduced the
			 following bill; which was read twice and referred to the
			 <committee-name committee-id="SSFI00">Committee on
			 Finance</committee-name></action-desc>
		</action>
		<legis-type>A BILL</legis-type>
		<official-title>To establish a medical education trust fund, and for
		  other purposes.</official-title>
	</form>
	<legis-body>
		<section id="S1" section-type="section-one"><enum>1.</enum><header>Short
			 title; table of contents</header>
			<subsection id="id092E14D3EDF04CE29BC862A4FFD9EE1E"><enum>(a)</enum><header>Short
			 title</header><text display-inline="yes-display-inline">This Act may be cited
			 as the <quote><short-title>Graduate Medical Education
			 Reform Act of 2010</short-title></quote>.</text>
			</subsection><subsection id="id6C13DA0213E048E5B691BA09921C02B7"><enum>(b)</enum><header>Table of
			 contents</header><text>The table of contents of this Act is as follows:</text>
				<toc>
					<toc-entry idref="S1" level="section">Sec. 1. Short title; table of
				contents.</toc-entry>
					<toc-entry idref="id80A0D66A12C6429387BD002012DF8A7D" level="section">Sec. 2. Medicare indirect medical education performance
				adjustment and primary care training bonus.</toc-entry>
					<toc-entry idref="id73B752465C53425BB70D43E5B6F0BEBF" level="section">Sec. 3. Payments for graduate medical education to hospitals
				not otherwise eligible for payments under the Medicare program.</toc-entry>
					<toc-entry idref="id0D5AFA9257614D3A9E09CCD8D04F37BF" level="section">Sec. 4. Increasing graduate medical education
				transparency.</toc-entry>
					<toc-entry idref="idED12B5DE50954BAD96158629BB677051" level="section">Sec. 5. Establishment of trust fund.</toc-entry>
					<toc-entry idref="ID86f5246e1a97405fa73ceac2be0d0271" level="section">Sec. 6. Partial financing for trust fund from fees on insured
				and self-insured health plans.</toc-entry>
				</toc>
			</subsection></section><section id="id80A0D66A12C6429387BD002012DF8A7D"><enum>2.</enum><header>Medicare
			 indirect medical education performance adjustment and primary care training
			 bonus</header><text display-inline="no-display-inline">Section 1886(d)(5)(B) of
			 the Social Security Act (42 U.S.C. 1395ww(d)(1)(B)) is amended—</text>
			<paragraph id="id6F2EE79D01444F1C87A9F7F70EB1A4D4"><enum>(1)</enum><text>by redesignating
			 the clause (x) as added by section 5505(b) of the Patient Protection and
			 Affordable Care Act as clause (xi); and</text>
			</paragraph><paragraph id="idAD2048E07D034EB4A1C135454B0D14BA"><enum>(2)</enum><text>by adding at the
			 end the following new clauses:</text>
				<quoted-block display-inline="no-display-inline" id="id87DFA92F756546E683F8D1911F589F99" style="OLC">
					<clause id="idB298C83D6BBD4E2589DA7816CBA7BD06" indent="up2"><enum>(xii)</enum><header>Adjustment for
				performance</header>
						<subclause id="IDbcb4ae1683b04a4bb1b71c6e26fe2be3"><enum>(I)</enum><header>In general</header><text>The
				Secretary shall establish and implement procedures under which the amount of
				payments that a hospital would otherwise receive for indirect medical education
				costs under this subparagraph for discharges occurring during an applicable
				period is adjusted based on the performance of the hospital on measures of
				health care work force priorities specified by the Secretary.</text>
						</subclause><subclause id="ID607910d9754b4d2f918a8551b5effa27"><enum>(II)</enum><header>Measures</header><text>The
				measures of health care workforce priorities specified by the Secretary under
				this clause shall include the extent of training provided in—</text>
							<item id="ID3aaa084b8bad472aa037238fd5411a13"><enum>(aa)</enum><text>primary care (as defined in subclause
				(VII)), excluding fellowships;</text>
							</item><item id="ID905ac03667d6403e95b4ad93269f5336"><enum>(bb)</enum><text>a variety of settings and
				systems;</text>
							</item><item id="ID64ec8f6f621041d5a5b0db4e84f6f732"><enum>(cc)</enum><text>the coordination of patient care across
				settings;</text>
							</item><item id="ID3f9eeb3e9d7645a99f434b8be295baa5"><enum>(dd)</enum><text>the relevant cost and value of various
				diagnostic and treatment options;</text>
							</item><item id="ID3e8fdbe2c35b4d50a98d9771d7fff558"><enum>(ee)</enum><text>interprofessional and multidisciplinary
				care teams;</text>
							</item><item id="IDc4462f2aeea44fce9d58701b95992bea"><enum>(ff)</enum><text>methods for identifying system errors
				and implementing system solutions; and</text>
							</item><item id="ID4009bde18aa441319f0f1e6e527bacd7"><enum>(gg)</enum><text>the use of health information
				technology.</text>
							</item></subclause><subclause id="ID0e6ec25776414a7494c369331758ab4a"><enum>(III)</enum><header>Measure development
				procedures</header>
							<item id="ID14b056f6b5e94c0982dc70815fc3b8f7"><enum>(aa)</enum><header>In general</header><text>The measures
				of health care workforce priorities specified by the Secretary under this
				clause shall be measures that have been adopted or endorsed by a consensus
				organization (such as the Accreditation Council for Graduate Medical Education
				or the Commission on Osteopathic College Accreditation), that include measures
				that have been submitted by teaching hospitals and medical schools, and that
				the Secretary identifies as having used a consensus-based process for
				developing such measures.</text>
							</item><item id="IDf256b62042104a8e8b3e574d85022794"><enum>(bb)</enum><header>Proposed set of
				measures</header><text>Not later than January 1, 2013, the Secretary shall
				publish in the Federal Register a proposed set of measures for use under this
				clause. The Secretary shall provide for a period of public comment on such
				measures.</text>
							</item><item id="ID98b0977430d047f1954d7e5412b87a38"><enum>(cc)</enum><header>Final set of
				measures</header><text>Not later than June 30, 2013, the Secretary shall
				publish in the Federal Register the set of measures to be specified by the
				Secretary for use under this clause.</text>
							</item></subclause><subclause id="ID2e3b98b0e3a04009925c325e8c67669f"><enum>(IV)</enum><header>Adjustment</header><text>Subject
				to subclause (V), the Secretary shall determine the amount of any adjustment
				under this clause to payments to a hospital under this subparagraph in an
				applicable period. Such adjustment may not exceed an amount equal to 3 percent
				of the total amount that the hospital would otherwise receive under this
				subparagraph in such period.</text>
						</subclause><subclause id="ID019dabc9897e4a6ab56e6217c7b5d690"><enum>(V)</enum><header>Budget neutral</header><text>In
				making adjustments under this clause, the Secretary shall ensure that the total
				amount of payments made to all hospitals under this subparagraph for an
				applicable period is equal to the total amount of payments that would have been
				made to such hospitals under this subparagraph in such period if this clause
				and clause (xii)(III) had not been enacted.</text>
						</subclause><subclause id="IDfe655d6dd6664902b08aa4fd1aaf2bd6"><enum>(VI)</enum><header>Primary care
				defined</header><text>In this clause, the term <term>primary care</term> means
				family medicine, general internal medicine, general pediatrics, preventive
				medicine, obstetrics and gynecology, and psychiatry.</text>
						</subclause><subclause id="id34B8B31E72DA4E4189E3C64E0E4DA61B"><enum>(VII)</enum><header>Applicable period
				defined</header><text>In this clause, the term <term>applicable period</term>
				means the 12-month period beginning on July 1 of each year (beginning with
				2013).</text>
						</subclause></clause><clause id="idF90CD24F2D2D450F800E2C6082DBF4B4" indent="up2"><enum>(xiii)</enum><header>Bonus payment for training in
				primary care</header>
						<subclause id="id38AB4BD62D714D1C8F9029F15071FED1"><enum>(I)</enum><header>In general</header><text>Subject
				to subclause (III), in the case of discharges occurring during an applicable
				period, in addition to the amount of payments that a hospital receives for
				indirect medical education costs under this subparagraph for such discharges
				(determined after any adjustment under clause (xii)), there shall also be paid
				to the hospital an amount equal to 1 percent of such payments if, during such
				applicable period, at least 33 percent of full-time equivalent residents
				(excluding fellowships) enrolled in the hospital's medical residency training
				programs were enrolled in medical residency training programs in primary care
				(as defined in clause (xii)(VI)).</text>
						</subclause><subclause commented="no" display-inline="no-display-inline" id="id5310C465ABB9473D837D02A540CB14FB"><enum>(II)</enum><header display-inline="yes-display-inline">Payments from Medical Education Trust
				Fund</header><text display-inline="yes-display-inline">Payments to hospitals
				under subclause (I) shall be made from the Medical Education Trust Fund under
				section 9512 of the Internal Revenue Code of 1986.</text>
						</subclause><subclause id="id2FFC7300D8B043A1AA2DE2ADD38E8E71"><enum>(III)</enum><header>Limitation</header><text>The
				total of the payments made to eligible hospitals under subclause (I) with
				respect to an applicable period shall not exceed an amount equal to the funds
				appropriated to such Trust Fund under subsection (b)(1) of such section 9512
				for the fiscal year ending on September 30 of such applicable
				period.</text>
						</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
			</paragraph></section><section id="id73B752465C53425BB70D43E5B6F0BEBF"><enum>3.</enum><header>Payments for
			 graduate medical education to hospitals not otherwise eligible for payments
			 under the Medicare program</header><text display-inline="no-display-inline">Title XVIII of the Social Security Act (42
			 U.S.C. 1395 et seq.) is amended by adding at the end the following new
			 section:</text>
			<quoted-block display-inline="no-display-inline" id="id5EC758212BCD40E1BB30E5E041A7D198" style="traditional">
				<section id="id4930CBC1E02B4091983111F84A751CAF"><enum>1899B.</enum><header>Graduate medical education payments for hospitals not
		  otherwise eligible</header><subsection commented="no" display-inline="yes-display-inline" id="id40417532B724444F82C74803EBD25EB0"><enum>(a)</enum><header>Program</header>
						<paragraph id="id67100D7E8D6140C99FB0FF51985196A3"><enum>(1)</enum><header>In
				general</header><text>The Secretary shall establish a program under which
				payments are made to eligible hospitals for each applicable period for direct
				expenses and indirect expenses associated with operating approved graduate
				medical residency training programs.</text>
						</paragraph><paragraph id="id039B22A56CB34D4D891EA30F76303EAC"><enum>(2)</enum><header>Requirements</header><text>Under
				the program under paragraph (1), the provisions of section 340E of the Public
				Health Service Act shall apply to payments to eligible hospitals in a similar
				manner as such provisions apply to payments to children's hospitals under such
				section 340E, except that—</text>
							<subparagraph id="id187F48AB44794185BC61E6854938E1C5"><enum>(A)</enum><text>payments to
				eligible hospitals under the program shall be made from the Medical Education
				Trust Fund under section 9512 of the Internal Revenue Code of 1986; and</text>
							</subparagraph><subparagraph id="idD5E3CFBF02C646EC8F1AEBFC6A871AF6"><enum>(B)</enum><text>the total of the
				payments made to eligible hospitals under the program in an applicable period
				shall not exceed an amount equal to—</text>
								<clause id="idCE521621AB8A4D84B41F8C99A94AF317"><enum>(i)</enum><text>the funds
				appropriated to such Trust Fund under subsection (b)(1) of such section 9512
				for the fiscal year ending on September 30 of such applicable period;
				minus</text>
								</clause><clause id="id4173EF50710745AFB85BD475FB86A7E1"><enum>(ii)</enum><text>the total amount
				of payments made to hospitals under section 1886(d)(5)(B)(xiii) in applicable
				period.</text>
								</clause></subparagraph></paragraph></subsection><subsection id="idFA7E914ED2284498981945F108400F56"><enum>(b)</enum><header>Eligible
				hospital defined</header><text>In this section, the term <term>eligible
				hospital</term> means the following hospitals:</text>
						<paragraph id="idD80A8B93E3134696B2560DD9FDB50716"><enum>(1)</enum><text>A children's
				hospital (as defined in section 340E(g)(2) of the Public Health Service
				Act).</text>
						</paragraph><paragraph id="id7800C0F04F5C470C90C7193E3CF37033"><enum>(2)</enum><text>A freestanding
				psychiatric hospital that has—</text>
							<subparagraph id="id4C07E088CE26460C8F834E78BCA96947"><enum>(A)</enum><text>90 percent or
				more inpatients under the age of 18;</text>
							</subparagraph><subparagraph id="id06C38368F4374547951EF05DF824CD9D"><enum>(B)</enum><text>its own Medicare
				provider number as of December 6, 1999; and</text>
							</subparagraph><subparagraph id="id6F92637A05E040CCB02B827B8A298E62"><enum>(C)</enum><text>an accredited
				residency program.</text>
							</subparagraph></paragraph><paragraph id="idCD90B9EE43414969B910A236C86CEAD0"><enum>(3)</enum><text>A
				hospital—</text>
							<subparagraph id="idDAD0C80A0DC041A28714BFE31F6A4AE3"><enum>(A)</enum><text>that annually has
				at least 3,000 births;</text>
							</subparagraph><subparagraph id="id992FE6A55BD14F1984516AC5413DC432"><enum>(B)</enum><text>for which less
				than 4 percent of the total annual discharges from the hospital are Medicare
				discharges of individuals who, as of the time of the discharge—</text>
								<clause id="idD63DB72F79654CC7A46F920541439784"><enum>(i)</enum><text>were entitled to,
				or enrolled for, benefits under part A; and</text>
								</clause><clause id="idC343411C4EEF4086951C2EDB89CAD283"><enum>(ii)</enum><text>were not
				enrolled in—</text>
									<subclause id="id96BAA0A24D064D8ABD7AF608589D945E"><enum>(I)</enum><text>a Medicare
				Advantage plan under part C;</text>
									</subclause><subclause id="idDB328467C63A40DC95FFC3D720BF1AEA"><enum>(II)</enum><text>an eligible
				organization under section 1876; or</text>
									</subclause><subclause commented="no" display-inline="no-display-inline" id="id061A232E07B24E0283C1623321980113"><enum>(III)</enum><text>a PACE program
				under section 1894;</text>
									</subclause></clause></subparagraph><subparagraph id="id7F4F87E50A6F4C1C9848066019C18D7B"><enum>(C)</enum><text>that has its own
				Medicare provider number; and</text>
							</subparagraph><subparagraph id="idFAD62D7B679C48119ED7DBA0E185150E"><enum>(D)</enum><text>that has an
				accredited residency program.</text>
							</subparagraph></paragraph></subsection><subsection id="idD8E52B4E3D094440B4F7041CEC70A2B6"><enum>(c)</enum><header>Applicable
				period defined</header><text>In this section, the term <term>applicable
				period</term> has the meaning given that term in section
				1886(d)(5)(B)(xii)(VII).</text>
					</subsection><subsection id="idBEAD06A5038C4E80B64321F7FEF631FC"><enum>(d)</enum><header>Regulations</header><text>The
				Secretary shall promulgate regulations to carry out this
				section.</text>
					</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
		</section><section id="id0D5AFA9257614D3A9E09CCD8D04F37BF"><enum>4.</enum><header>Increasing
			 graduate medical education transparency</header>
			<subsection id="id4A3BF5411A1E41BFADF859DB23813F16"><enum>(a)</enum><header>In
			 general</header><text>Not later than 2 years after the date of the enactment of
			 this Act, and annually thereafter, the Secretary of Health and Human Services
			 shall submit to Congress and the National Health Care Workforce Commission
			 under section 5101 of the Patient Protection and Affordable Care Act a report
			 on the graduate medical education payments that hospitals receive under the
			 Medicare program. The report shall include the following information with
			 respect to each hospital that receives such payments:</text>
				<paragraph id="ID474090452a624dedbc2ee6b7fe86e55f"><enum>(1)</enum><text>The direct
			 graduate medical education payments made to the hospital under section 1886(h)
			 of the Social Security Act (42 U.S.C. 1395ww(h)).</text>
				</paragraph><paragraph id="ID469d611c9b354cf3ae909a89f36409ba"><enum>(2)</enum><text>The indirect
			 medical education payments made to the hospital under section 1886(d)(5)(B) of
			 such Act (42 U.S.C. 1395ww(d)(1)(B)).</text>
				</paragraph><paragraph id="ID3f8744c67f354794886f29b57a24e8cd"><enum>(3)</enum><text>The number of
			 residents counted for purposes of making the payments described in paragraph
			 (1).</text>
				</paragraph><paragraph id="ID1e609ba710d1456f99dc9c02013bb2be"><enum>(4)</enum><text>The number of
			 residents counted for purposes of making the payments described in paragraph
			 (2).</text>
				</paragraph><paragraph id="idB0AF64117C524F0B837855A96B993E3C"><enum>(5)</enum><text>The number of
			 residents, if any, that are not counted for purposes of making payments
			 described in paragraph (1).</text>
				</paragraph><paragraph id="idCFD5C19046EE47B0A1B8701008FB1D26"><enum>(6)</enum><text>The number of
			 residents, if any, that are not counted for purposes of making payments
			 described in paragraph (2).</text>
				</paragraph><paragraph id="ID2e69d9118d634bc4bed6088b3cd5a98a"><enum>(7)</enum><text>The percent that
			 the payments described in paragraphs (1) and (2) that are made to the hospital
			 make up of the total costs that the hospital incurs in providing graduate
			 medical education, including salaries, benefits, operational expenses, and all
			 other patient care costs.</text>
				</paragraph></subsection></section><section id="idED12B5DE50954BAD96158629BB677051"><enum>5.</enum><header>Establishment of
			 trust fund</header>
			<subsection id="ID7807e3415bd34612b83bb74ce89ea4ba"><enum>(a)</enum><header>In
			 general</header><text>Subchapter A of chapter 98 of the Internal Revenue Code
			 of 1986 (relating to establishment of trust funds) is amended by adding at the
			 end the following new section:</text>
				<quoted-block display-inline="no-display-inline" id="id7A5A4B1A246249D694686BFB3A39E8B2" style="OLC">
					<section id="ID8cab9b12251b40ed8a4ab8621f3d7165"><enum>9512.</enum><header>Medical
				education trust fund</header>
						<subsection id="ID404ed15512344cc99298135ac4acb2cc"><enum>(a)</enum><header>Creation of
				trust fund</header><text>There is established in the Treasury of the United
				States a trust fund to be known as the <term>Medical Education Trust
				Fund</term> (hereafter in this section referred to as the <term>Trust
				Fund</term>), consisting of such amounts as may be appropriated or credited to
				such Trust Fund as provided in this section and section 9602(b).</text>
						</subsection><subsection id="IDb557598ba975436f933d0351b01189d3"><enum>(b)</enum><header>Transfers to
				fund</header>
							<paragraph id="IDd0aed65e3e534e88a6d874b475ea51fe"><enum>(1)</enum><header>Appropriations</header><text>There
				are hereby appropriated to the Trust Fund in each fiscal year (beginning with
				fiscal year 2013) the sum of an amount equivalent to one-half (or, in the case
				of fiscal year 2013, two-thirds) of the net revenues received in the Treasury
				from the fees imposed under subchapter B of chapter 34 (relating to fees on
				health insurance and self-insured plans).</text>
							</paragraph><paragraph id="IDf99a72478b414735bab456bce6f2faf1"><enum>(2)</enum><header>Limitation on
				transfers</header><text>No amount may be appropriated or transferred to the
				Trust Fund on and after the date of any expenditure from the Trust Fund which
				is not an expenditure permitted under this section. The determination of
				whether an expenditure is so permitted shall be made without regard to—</text>
								<subparagraph id="IDb77a11c60c1343b5980a8f0b2dd54b70"><enum>(A)</enum><text>any provision of
				law which is not contained or referenced in this chapter or in a revenue Act;
				and</text>
								</subparagraph><subparagraph id="ID9f130d4128b2446db45d56e77447cc66"><enum>(B)</enum><text>whether such
				provision of law is a subsequently enacted provision or directly or indirectly
				seeks to waive the application of this paragraph.</text>
								</subparagraph></paragraph></subsection><subsection id="ID5bb77e41c525410cacae63fab5843aca"><enum>(c)</enum><header>Trustee</header><text>The
				Secretary of Health and Human Services shall be a trustee of the Trust
				Fund.</text>
						</subsection><subsection id="ID67c438605ee7430e86be472244b33cf4"><enum>(d)</enum><header>Expenditures
				from trust fund</header><text>Amounts in the Trust Fund are available, without
				further appropriation, to the Secretary of Health and Human Services for making
				payments under sections 1886(d)(5)(B)(xiii) and 1899B of the Social Security
				Act.</text>
						</subsection><subsection id="IDce2aa419eb184e5aa86d9147fbee1b4c"><enum>(e)</enum><header>Net
				revenues</header><text>For purposes of this section, the term <term>net
				revenues</term> means the amount estimated by the Secretary of the Treasury
				based on the excess of—</text>
							<paragraph id="IDfb5bcf79d5d84e8287ff61572f2c954c"><enum>(1)</enum><text>the fees received
				in the Treasury under subchapter B of chapter 34, over</text>
							</paragraph><paragraph id="IDbe2f5c3cdd944ed7af790774e90377f7"><enum>(2)</enum><text>the decrease in
				the tax imposed by chapter 1 resulting from the fees imposed by such
				subchapter.</text>
							</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
			</subsection><subsection id="ID780c3bb4f53c4461bf634a5cc4704c62"><enum>(b)</enum><header>Clerical
			 amendment</header><text>The table of sections for subchapter A of chapter 98 of
			 the Internal Revenue Code of 1986 is amended by adding at the end the following
			 new item:</text>
				<quoted-block display-inline="no-display-inline" id="id8EEC1C94A71A49A1ADC3E16C74D6820C" style="OLC">
					<toc>
						<toc-entry bold="off" level="section">Sec. 9512. Medical Education
				Trust
				Fund.</toc-entry>
					</toc>
					<after-quoted-block>.</after-quoted-block></quoted-block>
			</subsection></section><section id="ID86f5246e1a97405fa73ceac2be0d0271"><enum>6.</enum><header>Partial
			 financing for trust fund from fees on insured and self-insured health
			 plans</header>
			<subsection id="IDe65ca38e610c4acfad6ac41848fd095f"><enum>(a)</enum><header>Imposition of
			 fee</header><text>Section 4375(a) of the Internal Revenue Code of 1986 is
			 amended—</text>
				<paragraph id="idA41B88895D684A45BDE3F479DC612B5D"><enum>(1)</enum><text>by striking
			 <quote>$2</quote> and inserting <quote>$4</quote>; and</text>
				</paragraph><paragraph id="idD4ADF2BC36A24957B25BF94F21B1869A"><enum>(2)</enum><text>by striking
			 <quote>$1</quote> and inserting <quote>$3</quote>.</text>
				</paragraph></subsection><subsection id="id318C1C2F4A9B46378BAB3943B32613B6"><enum>(b)</enum><header>Conforming
			 amendment to the Patient-Centered Outcomes Research Trust
			 Fund</header><text>Section 9511(b)(1)(E) of the Internal Revenue Code of 1986
			 is amended by inserting <quote>one-half (or, in the case of fiscal year 2013,
			 one-third) of</quote> after <quote>equivalent to</quote>.</text>
			</subsection></section></legis-body>
</bill>
