Already have credit for PGY1 in IM. Can I still apply for IM prelim?

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The PGY1 was part of Anesthesiology Categorical. Long story short, I did not complete Anesthesia residency. It's been more than 5 years since my internship in IM. I'm applying to PM&R advanced programs and IM prelim this cycle. I vaguely heard that Medicare doesn't fund PGY1 for applicant who already have PGY1 credit. Can somebody shed any insight on this? Or is it false rumor? Thanks
 
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