Health Care Financing Administration--Medicare program; reimbursement for costs of approved internship and residency programs. Final rule.

This final rule amends the regulation governing Medicare payments to providers of services for their costs of approved educational activities. Under the current regulation, providers are required to deduct all grants designated for specific education programs from their costs of those programs in claculating their costs that are reimbursed by Medicare. Under the amended regulation, providers will not be required to deduct grants for primary care internship and residency programs. The rule is intended to avoid nullifying the purposes of specific grants for these programs. The amended rule will also apply to Medicaid payments in those States that pay for costs of educational acitivities on the same basis as Medicare.