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<PRE>[DOCID: f:s1954is.txt]






107th CONGRESS
  2d Session
                                S. 1954

 To establish a demonstration project under the medicare program under 
   title XVIII of the Social Security Act to provide the incentives 
     necessary to attract educators and clinical practitioners to 
                           underserved areas.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 14, 2002

   Mr. Feingold (for himself, Ms. Collins, Mr. Kohl, and Mr. Dayton) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To establish a demonstration project under the medicare program under 
   title XVIII of the Social Security Act to provide the incentives 
     necessary to attract educators and clinical practitioners to 
                           underserved areas.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Graduate Medical Education 
Demonstration Act of 2002''.

SEC. 2. CLINICAL ROTATION DEMONSTRATION PROJECT.

    (a) Establishment.--Not later than 6 months after the date of 
enactment of this Act, the Secretary shall establish a demonstration 
project that provides for demonstration grants designed to provide 
financial or other incentives to hospitals to attract educators and 
clinical practitioners so that hospitals that serve beneficiaries under 
the medicare program under title XVIII of the Social Security Act (42 
U.S.C. 1395 et seq.) who are residents of underserved areas may host 
clinical rotations.
    (b) Duration of Project.--The demonstration project shall be 
conducted over a 5-year period.
    (c) Funding.--
            (1) In general.--Subject to paragraph (2), the Secretary 
        shall pay the costs of the demonstration project conducted 
        under this section from the Federal Hospital Insurance Trust 
        Fund under section 1817 of the Social Security Act (42 U.S.C. 
        1395i).
            (2) Cap on funding.--The Secretary may not expend more than 
        $20,000,000 to conduct the demonstration project under this 
        section.
            (3) Budget neutrality for demonstration project.--
        Notwithstanding any other provision of law, the Secretary shall 
        provide for an appropriate reduction in the aggregate amount of 
        additional payments made under subsection (d)(5)(B) of section 
        1886 of the Social Security Act (42 U.S.C. 1395ww) for the 
        indirect costs of medical education and for direct graduate 
        medical education costs under subsection (h) of such section to 
        reflect any increase in amounts expended from the Federal 
        Hospital Insurance Trust Fund as a result of the demonstration 
        project conducted under this section.
    (d) Reports.--The Secretary shall submit to the appropriate 
committees of Congress interim reports on the demonstration project and 
a final report on such project within 6 months after the conclusion of 
the project together with recommendations for such legislative or 
administrative action as the Secretary determines appropriate.
    (e) Waiver.--The Secretary shall waive such provisions of titles XI 
and XVIII of the Social Security Act (42 U.S.C. 1301 et seq. and 1395 
et seq.) as may be necessary to conduct the demonstration project under 
this section.
    (f) Definitions.--In this section:
            (1) Hospital.--The term ``hospital'' means any subsection 
        (d) hospital (as defined in section 1886(d)(1)(B) of the Social 
        Security Act (42 U.S.C. 1395ww(d)(1)(B)) that had indirect or 
        direct costs of medical education during the most recent cost 
        reporting period preceding the date of enactment of this Act.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (3) Underserved area.--The term ``underserved area'' means 
        such medically underserved urban areas and medically 
        underserved rural areas as the Secretary may specify.
                                 &lt;all&gt;

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