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Washington Highlights: September 24, 2004

Senate Appropriations Panel Approves VA-HUD Funding Bill

The Senate Appropriations Committee Sept. 21 approved its version of the FY 2005 VA-HUD and Independent Agencies appropriations bill. The bill (S. 2825, S. Rpt. 108-353) includes increased funding for the Department of Veterans Affairs (VA) medical care, flat funding for VA research and a small increase for the National Science Foundation (NSF). The House Appropriations Committee passed its version of the bill on July 22 [see Washington Highlights, July 23].

Specifically, the Senate Appropriations Committee approved a funding level of $28.35 billion for the Veterans Health administration (VHA). This is an increase of $1.74 billion over FY 2004, and $1.2 billion higher than the President's budget proposal. The Committee designated $1.2 billion of this total as "emergency spending" and therefore not subject to the overall spending cap on the bill. The total also includes $405.6 million for VA medical and prosthetics research, the same level as FY 2004, and $20.8 higher than the President proposed. The Committee urged VA to prioritize prosthetics research and asked for a report from the VA on how they would do so by Dec. 31, 2004.

For the NSF, the Senate Committee allocated $5.75 billion, an increase of $167 million (3.0 percent) over FY 2004 and the same level as proposed by the President. This total includes $4.40 billion for NSF Research, $151 million (3.6 percent) more than FY 2004, but $50 million less than the President proposed.

Information:
Jonathan Fishburn, Director, Research, Education and Veterans' Legislative Affairs
AAMC Office of Governmental Relations
jfishburn@aamc.org
(202) 828-0525

Sullivan Commission Report Addresses Health Professions Diversity

The Sullivan Commission on Diversity in the Healthcare Workforce, chaired by and named for former Secretary of Health and Human Services Louis W. Sullivan, M.D., released a report Sept. 20 with recommendations on how to achieve diversity in the health professions. The report is the result of field hearings held across the country, which focused on the scarcity of minorities in the health professions.

The report notes that to increase minority representation in the healthcare workforce, health professions schools must improve the diversity of their students and faculty. It recommends health professions schools partner with communities to promote health careers for disadvantaged and minority students; reduce dependence on standardized tests in the admissions process; and ensure mission statements include diversity as a core value. The report also recommended that funding should be increased for the National Health Service Corps and the diversity programs within Titles VII and VIII of the Public Health Service Act, and for the NIH National Center for Minority Health and Health Disparities and the Health Disparities Loan Repayment Program.

The AAMC issued a press release Sept. 20 praising the report and calling attention to the need to bolster the pipeline with well-qualified, diverse students.

Information:
Erica Froyd, Director, Public Health and Research Legislative Affairs
AAMC Office of Governmental Relations
efroyd@aamc.org
(202) 828-0525

Legislation Extends Grant Program to Help Fund States' High-Risk Health Insurance Pools

Expiring federal grants for states' high-risk health insurance pools would be extended and increased under legislation passed by voice vote in the Senate Health, Education, Labor and Pensions (HELP) Committee on Sept. 22. Without further legislative action, the grant program will expire on Sept. 30.

Introduced by HELP Committee Chairman Judd Gregg (R-N.H.) and Ranking Member Max Baucus (D-Mont.), the "State High Risk Pool Funding Extension Act of 2004" (S. 2283) reauthorizes the grant program that helps states establish and maintain high-risk pools to cover individuals unable to obtain affordable health insurance because of pre-existing medical conditions. The bill re-authorizes the unspent portion of "seed money" made available in FY 2003 (by the Trade Act of 2002) to help states establish new high-risk pools. The unspent funds total approximately $15 million and would be available through FY 2005. The Gregg-Baucus bill also authorizes $75 million in grants per year in FYs 2005 - 2009 to help states with existing high-risk pools.

The legislation changes the formula for allocating grant funds to state high-risk pools. Rather than allotting funds based solely on the size of a state's uninsured population (as established in the Trade Act), S. 2283 divides about 50 percent of the available funding equally among qualifying states. Approximately 25 percent of the funding would be based on risk pool enrollment, and the remaining 25 percent would reflect a state's proportion of uninsured people.

Information:
Christiane Mitchell, Senior Legislative Affairs Manager
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526