An advisory panel to Congress is recommending an overhaul of Medicare funding for graduate medical education (GME).
In its semiannual report covering all aspects of the Medicare program, the Medicare Payment Advisory Commission (MedPAC) noted that Medicare is the single largest payer of GME, spending $9.5 billion in 2009. About $3 billion supports Medicare's share of the direct costs of running GME programs, and $6.5 billion covers the agency's share of indirect clinical costs incurred by institutions providing GME. MedPAC estimates that Medicare is spending $3.5 billion more than necessary on those indirect clinical costs (http://www.medpac.gov/documents/Jun10_EntireReport.pdf).
Mitka M. Refinancing GME. JAMA. 2010;304(6):628. doi:10.1001/jama.2010.1075