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Washington Highlights: April 15, 2005

44 House Republicans Oppose Medicaid Cuts in Budget Resolution

Rep. Heather Wilson (R-N.M.) was joined by 43 of her House Republican colleagues in sending an April 13 letter to Budget Committee Chairman Jim Nussle (R-Iowa), opposing the inclusion of Medicaid cuts and reconciliation instructions in the final FY 2006 budget agreement. The House-passed Budget Resolution (H. Con. Res. 95) directs the Energy and Commerce Committee to identify $20 billion in savings over the next five years. While the bill does not specify how the Committee must find the savings, it requires that the savings come from within programs under their jurisdiction. Given that Medicaid is under Energy and Commerce jurisdiction, and given its high level of funding, it is likely savings would be achieved through program cuts.

The letter expresses concern that the proposed cuts would "negatively impact people who depend on the program and the providers who deliver health care to them." It advises Chairman Nussle that "policy should drive the budget and not the budget drive policy." The co-signers also support establishment of a Bipartisan Commission on Medicaid, as outlined in the Senate-passed budget resolution (S. Con. Res. 18). Such a commission, they write, "would serve as a credible forum for an honest, open discussion and the development of comprehensive recommendations on how we can reform the Medicaid program."

Signers of the letter include: Bob Beauprez (Colo.); Judy Biggert (Ill.); Sherwood Boehlert (N.Y.); John Boozman (Ark.); Ginny Brown-Waite (Fla.); Shelly Moore Capito (W.Va.); Mike Castle (Del.); Jo Ann Davis (Va.); Tom Davis (Va.); Charlie Dent (Pa.); Vern Ehlers (Mich.); Jo Ann Emerson (Mo.); Phil English (Pa.); Mike Fitzpatrick (Pa.); Luis Fortuno (P.R.); Jim Gerlach (Pa.); Joel Hefley (Colo.); Tim Johnson (Ill.); Sue Kelly (N.Y.); Peter King (N.Y.); Randy Kuhl (N.Y.); Steve LaTourette (Ohio); Jim Leach (Iowa); Frank LoBiondo (N.J.); Donald Manzullo (Ill.); Kenny Marchant (Texas); John McHugh (N.Y.); John Peterson (Pa.); Jim Ramstad (Minn.); Rick Renzi (Ariz.); Ileana Ros-Lehtinen (Fla.); Jim Saxton (N.J.); Joe Schwarz (Mich.); Chris Shays (Conn.); Don Sherwood (Pa.); Rob Simmons (Conn.); Chris Smith (N.J.); Mike Sodrel (Ind.); John Sweeney (N.Y.); Jim Walsh (N.Y.); Curt Weldon (Pa.); Jerry Weller (Ill.); Heather Wilson (N.M.); and Frank Wolf (Va.).

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

Members of Congress Urge Restoration of Health Professions Funding

In an April 8 letter co-sponsored by Reps. Diana DeGette (D-Colo.) and Charlie Norwood (R-Ga.), 102 Members of Congress urged House appropriators to restore the Title VII health professions funding cut in the Administration's proposed FY 2006 budget.

Noting that the proposed decreases could "hamper the programs' ability to train health professionals to care for the neediest populations," the letter requests restoration to at least the FY 2005 level of $300 million. The letter also notes that the Title VII programs are the only federal programs designed to provide interdisciplinary training in underserved areas of the country and increase minority representation in the health care workforce.

Additional signers have been added, and the letter will be sent again April 15 to the House Labor, Health and Human Services, and Education Appropriations Subcommittee.

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

CMS Issues Document Intended to Clarify Medicare Regulations on Resident Training in Nonhospital Sites

The Centers for Medicare and Medicaid Services (CMS) April 8 issued to Congressional staff and posted on its website a Q and A document intended to clarify CMS' Medicare policies for counting residents in non-hospital settings. Entitled "Medicare Policy Qualifications on Graduate Medical Education Payments for Residents Training in Non-Hospital Settings," the document provides CMS' answers to nine questions relating to Medicare Indirect Medical Education (IME) and Direct Graduate Medical Education (DGME) payments associated with resident training in nonhospital sites, including whether physicians in non-hospital settings can volunteer their supervisory time, and how teaching hospitals should determine the physician' supervisory costs and payments to the non-hospital site.

The CMS clarification is not in line with AAMC's long-standing position that teaching hospitals and nonhospital sites - not the government - are in the best position to determine the supervisory costs, if any, of community physicians when they are supervising residents in nonhospital sites. The AAMC is preparing a response to the Q and A document.

The Q and A document was developed in response to questions raised by policymakers concerning Medicare fiscal intermediaries' denials of teaching hospitals' IME and DGME payments for resident training in nonhospital sites when a community physician volunteers as a supervisor. The document describes the circumstances under which CMS believes there are no costs associated with a physician who volunteers his/her time to supervise residents in a nonhospital site, and those instances when there is a cost. If the supervising physician is a solo practitioner and "compensation is based solely and directly on number of patients treated and for which he/she bills," then there is no cost associated with his supervision time and therefore no payment needed by the hospital. If a community physician is salaried, according to CMS, the salary includes "implicit" supervisory costs that must be paid by the hospital to the nonhospital site if the hospital wishes to claim residents for the time they train at the nonhospital site. In such cases, the teaching hospital must determine how much the physician should be paid based on a certain percentage of the physician's salary.

Also issued with the CMS document was a statement by CMS Administrator Mark McClellan, M.D., Ph.D., that "This guidance will help providers better understand the documentation requirements related to counting residents' time in non-hospital settings, particularly those concerning teaching physician compensation…. We hope that greater clarity will open more opportunities for academic medical centers to conduct nonhospital training."

Information:
Karen Fisher, Sr. Director, Health Care Affairs
AAMC Health Care Affairs
kfisher@aamc.org
(202) 862-6140

Ivy Baer, Director & Regulatory Counsel
AAMC Health Care Affairs
ibaer@aamc.org
(202) 828-0490

Lynne Davis Boyle, Assistant Vice President
AAMC Government Relations
ldavisboyle@aamc.org
(202) 828-0526

CMS Document Identifies States' Misuse of Medicaid Funds

A list of states' inappropriate use of intergovernmental transfers (IGTs) for purposes of drawing down additional federal Medicaid payments has reportedly been released to the House Energy and Commerce Committee and the Senate Finance Committee by the Centers for Medicare and Medicaid Services (CMS).

The document identifies states that use IGTs "appropriately;" states that have revised existing IGTs by removing "recycling;" and states whose IGTs potentially use "recycling," the process by which states increase federal Medicaid payments without increasing state expenditures.

The document also suggests that CMS is questioning mechanisms among certain states with pending state plan amendments (SPA) or no SPA on record.

IGTs are transactions that states may use to increase the federal match for Medicaid expenditures. Many of the "inappropriate" IGTs listed by the CMS document relate to nursing facility and inpatient hospital services, but also include outpatient services, physician services, and clinic services. One state was identified as having revised an IGT related to graduate medical education payments.

The document does not indicate the federal cost associated with "inappropriate" IGT use. However, the President's budget proposal includes $60 billion in Medicaid reductions through FY 2015, including $11.9 billion in savings over 10 years generated by further restricting states' use of IGTs.

Information:
Lynne Davis Boyle, Assistant Vice President
AAMC Government Relations
ldavisboyle@aamc.org
(202) 828-0526

Christiane Mitchell, Senior Legislative Analyst
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526

AHRQ Announces New Preventive Services Task Force Members

The Agency for Healthcare Research and Quality (AHRQ) March 24 announced a new vice-chair and five new members to the U.S. Preventive Services Task Force. The Task Force is an independent panel that reviews scientific evidence and makes recommendations on a broad range of preventive services, such as prostate cancer, obesity, and cervical cancer.

Diane Petitti, M.D., M.P.H., senior scientific advisory for Kaiser Permanente of Southern California, is the new vice chair. The new members include: Thomas DeWitt, M.D., professor of pediatrics and director of the Division of General and Community Pediatrics at Children's Hospital Medical Center in Cincinnati; Kenneth Kizer, M.D., M.P.H., president and CEO of the National Quality Forum and former Undersecretary of Health in the Department of Veterans Affairs; Michael LeFevre, M.D., M.S.P.H., professor of family and community medicine at the University of Missouri School of Medicine; Lucy Marion, Ph.D., R.N., dean and professor of the Medical College of Georgia School of Nursing; and George Sawaya, M.D., associate professor in the Department of Obstetrics, Gynecology and Reproductive Services and the Department of Epidemiology and Biostatistics at the University of California, San Francisco.