Summary of OME Provisions in Budget Reconciliation
November 8, 2021 by AACOM Government Relations

On November 3, the House Rules Committee released updated text and a section-by-section summary of President Biden's Build Back Better reconciliation bill. Below is a summary of provisions relevant to the osteopathic medical education community.

OME Provisions in the Section by Section Summary

Section 31003. Funding for Teaching Health Center Graduate Medical Education.   

This section provides $3.37 billion in funding for payments to teaching health centers that operate graduate medical education programs and for the awarding of teaching health center development grants. In making such grants, the Secretary of Health and Human Services (HHS) shall prioritize payments and awards to states or territories in which there is no existing qualified teaching health center.   

Section 31004. Funding for Childrens Hospitals that Operate Graduate Medical Education Programs.   

This section provides $200 million in funding for the Children’s Hospital Graduate Medical Education program, which supports the training of pediatric primary care, specialty, and dental residents. 

Section 31005. Funding for the National Health Service Corps. 

This section provides $2 billion in funding for the National Health Service Corps, which provides scholarships and loan repayment to qualified health care providers in exchange for their service in underserved areas across the country. 

Section 31007. Funding for Schools of Medicine in Underserved Areas.   

This section provides $500 million in funding for the establishment, improvement, or expansion of schools of medicine in particular in underserved communities and with priority given to minority-serving institutions. 

Section 31010. Funding for Palliative Medicine Physician Training. 

This section provides $20 million in funding for schools of medicine, teaching hospitals, and graduate medical education programs to train physicians (including residents, trainees, and fellows) or specialists who plan to teach or practice palliative medicine. 

Section 31011. Funding for Palliative Care and Hospice Academic Career Awards. 

This section provides $20 million in funding for programs to promote the career development of individuals who are board certified or board eligible in hospice and palliative medicine and have a junior (non-tenured) faculty appointment at an accredited health professions school. 

Section 31038. Funding for Education and Training at Health Professions Schools to Identify and Address Health Risks Associated with Extreme Heat, Air Pollution, and Climate Change. 

This section provides $85 million in funding to award grants to support the development and integration of education and training programs for identifying and addressing risks associated with extreme heat, air pollution, and climate change on maternal health, including pregnant, lactating, or postpartum individuals. 

Section 120004. Increase in number of health professions residency positions at Department of Veterans Affairs medical facilities. 

Section 120004 provides $268 million for the Department of Veterans Affairs (VA) to invest in its statutory mission to conduct an education and training program for health professional students and residents by authorizing VA to increase the number of health professions residency positions at its medical facilities by up to 500 over 7 years. 

Section 137401. Administrative Funding of the Rural and Undeserved Pathway to Practice Training Programs for Post-Baccalaureate Students, Medical Students, and Medical Residents.  

This section invests $6 million into implementation of the Pathway to Practice program. 

Section 137402. Establishing Rural and Underserved Pathway to Practice Training Programs for Post-Baccalaureate Students and Medical Students.   

This section establishes Section 1899C of the Social Security Act for the Rural and Underserved Pathway to Practice Training Program for Post-Baccalaureate and Medical Students. This section incentivizes those from rural and underserved communities to become physicians and to practice in those communities through a scholarship and stipend for qualifying medical students to attend medical school or post-baccalaureate and medical school. 

Students eligible for this program include first generation college or professional students; Pell Grant recipients; those who lived in a medically underserved, rural, or health professional shortage areas. 

Beginning in 2023, the Secretary shall award 1,000 scholarships per year, which includes tuition, academic fees, textbooks, equipment, and a monthly stipend tied to the amount in for the Armed Forces Health Professions Scholarship Program, which for 2021 is $2,540. The Secretary shall prioritize those students who participated in the Health Careers Opportunity Program, were Area Health Education Scholars, are disadvantaged students as defined by the National Health Service Corps, or attended a Historically Black College or University or minority serving institution. Upon scholarship acceptance, the student agrees to complete medical school (and post-baccalaureate program as applicable), residency, and practice for at least one year per scholarship year in a health professional shortage area, a medically underserved area, or a rural area. 

If the student is not compliant with the terms of the scholarship, the student must repay the amounts and the Secretary will collect these repayments with interest, except for the case of hardship. 

Section 137403 Funding for the Rural and Underserved Pathway to Practice Training Programs for Post-Baccalaureate Students and Medical Students.   

This section creates a new refundable Pathway to Practice medical scholarship voucher credit under section 36G of the Internal Revenue Code for qualified educational institutions. The credit amount for a taxable year is equal to the aggregate amount paid or incurred by a qualified educational institution during the taxable year pursuant to an annual award of a Pathway to Practice medical scholarship voucher to a qualifying student.   

Section 137404. Establishing Rural and Underserved Pathway to Practice Training Programs for Medical Residents.   

This section amends Section 1886 of the Social Security Act to incentivize additional residency training by, beginning on October 1, 2026, excluding from the residency slot cap those residents who participated in Rural and Underserved Pathway to Practice Training Programs at certain applicable hospitals that are recognized by the Accreditation Council for Graduate Medical Education (ACGME) for committing to train physicians with additional requirements, such as increased mentorship, structural and cultural competency training, and training in the community.   

Section 137405. Distribution of Additional Residency Positions.   

This section amends Section 1886 of the Social Security Act to invest in additional residency training by, beginning on October 1, 2024, distributing 4,000 additional Medicare residency positions, and prioritizing certain hospitals for that distribution.  

 

Please contact AACOM Government Relations at aacomgr@aacom.org with questions or for further information.

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