Legislative and Regulatory Reports
From Washington, D.C

Legislators Propose Medical Education Trust Fund. Bills that would provide a new source of funding for graduate medical education were introduced in both houses of Congress in January. The "Graduate Medical Education Trust Fund Act of 1997" was introduced by Rep. Ken Bentsen (D-Texas) and Sen. Daniel P. Moynihan (D-N.Y.). These trust funds are in addition to existing funds provided to teaching hospitals for graduate medical education.

Funding for the trusts would come from a variety of sources. Rep. Bentsen’s bill would provide funding by recapturing a portion of the Adjusted Average Per Capita Cost (AAPCC) payment, which is the Medicare reimbursement paid to health plans that provide managed care coverage. The trust fund would make payments to teaching hospitals. Senator Moynihan’s bill provides funding for the trust fund by recapturing the medical education portion of the Medicare AAPCC payment and 5% of federal Medicaid payments for acute medical service. In addition, the bill would impose a 1.5% tax
on health insurance premiums and payments for health-related administrative services. Moynihan’s trust fund would make payments to teaching hospitals and medical schools.

Each bill would establish an advisory group to advise the Secretary of Health and Human Services on the future of graduate medical education and alternate sources of funding.

FDA Offers Adverse Effects Grant Program. The Food and Drug Administration (FDA) Center for Drug Evaluation and Research is offering grants of $1.4 million for research on the adverse effects of marketed drugs, biologics, and devices. The agency expects to make four to six awards ranging from $250,000 to $350,000.

Researchers will conduct safety analysis, provide rapid access to multiple data sources to respond to safety concerns, as well as provide a mechanism for collaborative research on suspected adverse reactions reported to FDA. The agency hopes to fund databases representing a variety of patient populations and care settings. Support for selected applications may extend up to three years. The deadline for submitting applications is March 21. For more information, call FDA at (301) 443-6170.

In Brief. A bill that would provide coverage of outpatient prescription drugs under Medicare has been introduced in Congress. The "Comprehensive Long-Term Care Act of 1997" , proposed by Rep. Eliot Engel (D-NY), also expands coverage of nursing facility and in-home services.