To apply an alternative payment amount under the Medicare Program for certain graduate medical education programs established to train residents displaced by natural disasters.

Directs the Secretary of Health and Human Services, for a cost reporting period beginning on or after July 1, 2005, to provide for payments of direct graduate education costs under title XVIII (Medicare) of the Social Security Act in accordance with an alternative payment methodology for eligible hospitals in or adjacent to a major disaster area which have established a program to educate residents displaced from a graduate medical education (GME) program impacted by such disaster.