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Washington Highlights: May 27, 2005

House Expands Eligibility For Stem Cell Research Funding

After three hours of emotional debate, the House of Representatives May 24 passed a proposal to expand the number of human embryonic stem cell lines eligible for federal research funding by a vote of 238 to 194. Despite a Statement of Administration Policy that President Bush would veto the bill, 50 Republicans joined 187 Democrats and 1 Independent to support the measure. Fourteen Democrats and 180 Republicans voted against the bill.

Following the House vote, AAMC President Jordan Cohen, M.D., issued a statement thanking the principal cosponsors of the Stem Cell Research Enhancement Act (H.R. 810) - Michael Castle (R-Del.) and Diana DeGette (D-Colo.) - "for their hard work and leadership on this vital issue. Patients and researchers alike are indebted to them for the perseverance, passion, and political skill they exhibited in shepherding this legislation through the House."

The principal cosponsors of the Senate companion bill (S. 471) - Senators Arlen Specter (R-Pa.), Tom Harkin (D-Iowa), Orrin Hatch (R-Utah), Dianne Feinstein (D-Calif.), Gordon Smith (R-Ore.) and Edward Kennedy (D-Mass.) - held a press conference on May 25 to urge the Senate leadership to take up the bill immediately without amendment. Senator Harkin said supporters of S. 471 have "over 60 votes," enough to block a filibuster but short of the 67 needed to override a veto. Majority Leader Bill Frist (R-Tenn.) has not indicated how he intends to proceed on this proposal. Senator Specter, who chairs the Labor-HHS-Education Appropriations Subcommittee, has vowed to use the FY 2006 appropriations bill to move the embryonic stem bill if necessary.

The House also passed under suspension of the rules 431 to 1 the "Stem Cell Therapeutic and Research Act of 2005" (H.R. 2520) to support research using human cord blood stem cells for research and the treatment of patients. Opponents of embryonic stem cell research unsuccessfully tried to portray the cord blood bill as an alternative to H.R. 810.

Information:
Dave Moore, Senior Director
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525

CMS Establishes Medicaid Commission

The Centers for Medicare and Medicaid Services (CMS) May 24 issued a Federal Register notice [70 FR 29765] regarding the establishment, purpose, and charter of a Medicaid Commission. The creation of such a commission was initially proposed during debate over the FY 2006 congressional budget resolution.

According to the notice, the Commission will "advise the [Health and Human Services] Secretary on ways to modernize the Medicaid program so that it can provide high-quality health care to its beneficiaries in a financially sustainable way." By Sept. 1, 2005, the Commission must submit an initial set of "options to achieve $10 billion in scorable Medicaid savings over five years." It is likely that these recommendations will help guide the House Energy and Commerce Committee in identifying the $14.7 billion in savings required under the FY 2006 budget resolution. A second set of recommendations to ensure "the long-term sustainability of the program" is due by Dec. 31, 2006.

The notice establishes a June 3, 2005, deadline for nominating individuals for Commission membership. The Commission will include voting members (maximum of 15), non-voting advisor members (maximum of 15), and non-voting congressional advisor members (maximum of 8). The voting members may include governors; policy experts; State Medicaid Directors; "individuals with expertise in health, finance, or administration;" federal Medicaid administrators; the HHS Secretary; other members specified by the HHS Secretary; and "Ex Officio Members." The non-voting advisor members "will support the Commission's deliberations" and can include state/local government officials, providers, and consumers "who have an inherent interest in the Medicaid program."

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

AAMC Testifies at PPAC on Physician-Pay-for-Performance

Albert Bothe Jr., M.D., associate dean and executive director, University of Chicago Practice Plan, and past-chair of AAMC's Group on Faculty Practice Steering Committee and chair of its Subcommittee on Legislative and Regulatory Issues, May 23 testified on behalf of the AAMC regarding physician quality and pay-for-performance (P4P) initiatives at the quarterly meeting of the Practicing Physician's Advisory Council (PPAC).

PPAC is a mandated advisory body to the Department of Health and Human Services (HHS) that provides input on regulatory and carrier manual issues relevant to physicians. The meeting covered a variety of topics, including the new National Provider Identifier (NPI) application process; the three-year recovery audit contract demonstration for California, Florida and New York; an overview of the Part-D prescription drug benefit and the expected physician and patient support materials; the competitive acquisition program (an alternative program for physicians who are having difficulty acquiring physician-administered medications at average sales price plus 6 percent), and CMS quality and P4P initiatives.

The AAMC's testimony expressed its support of Centers for Medicare and Medicaid Services (CMS) initiatives to improve quality, but also stated that any pay-for-performance initiatives must adhere to specific design principles to ensure accurate and fair measurement and reporting. The statement also noted that, although implementation of quality initiatives may result in long tern savings, such initiatives could increase utilization and thus spending on physicians and other services covered by Part B. Increased expenditures would have a negative financial impact under the current Part B Sustainable Growth Rate (SGR) system.

Information:
Mary Patton, Senior Policy Analyst
AAMC Division of Health Care Affairs
mpatton@aamc.org
(202) 862-6297

Denise Dodero, Sr. Director, Health Care Affairs
AAMC Health Care Affairs
ddodero@aamc.org
(202) 828-0493

CMS Proposes Teaching Status Adjustment for Medicare Rehab PPS

The Centers for Medicare and Medicaid Services (CMS) May 25 published in the Federal Register [70 FR 30188] an FY 2006 proposed rule that proposes that a teaching adjustment be added to the Medicare inpatient rehabilitation facility (IRF) prospective payment system (PPS). The IRF PPS is the payment system for Medicare-qualifying rehabilitation hospitals and distinct part units of general acute care hospitals.

Similar to the indirect medical adjustment in the acute care PPS, the IRF teaching adjustment would compensate teaching rehab facilities for the higher costs they incur in providing rehabilitation care. Analysis of 2003 data conducted by the RAND Corporation, CMS's research contractor, indicated a statistically significant relationship between teaching status and costs. While the inpatient IME adjustment uses residents-to-beds as its teaching variable, the proposed IRF teaching variable would be the ratio of residents to average daily census (RADC). Under the proposal, a teaching IRF with an RADC of 0.10 would receive a 10.9 percent increase in their PPS payment. To constrain the teaching payments, CMS proposes to impose a cap on the count of residents that could be included in the RADC; this is similar to the inpatient and psychiatric teaching adjustments.

While CMS is proposing a teaching adjustment, the accompanying discussion in the proposed rule reflects some reluctance in doing so. CMS states that it has "some concerns" about implementing an adjustment at this time, due largely to perceived volatility in the 2003 data on which the adjustment was determined. The agency states that newer data may be examined that may "lead us to conclude that a teaching status adjustment is not needed."

Comments on the proposed rule are due July 18, 2005.

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

NIH Meeting Calls for Enhancing the Discipline of Clinical and Translational Sciences

The National Institutes of Health (NIH) held a May 23 meeting to introduce to the biomedical research community a new initiative in which the National Center for Research Resources (NCRR) "will lead a new effort on behalf of the NIH Roadmap Re-engineering the Clinical Research Enterprise initiative to catalyze the development of a new discipline of clinical and translational sciences". NCRR sought "the advice of the clinical and translational sciences community on ways that the NIH can:

  • foster the clinical and translational sciences into a new academic discipline;
  • promote the training and career pathways of clinical and translational investigators;
  • allow for the more comprehensive integration and expansion of resources for clinical and translational research; and
  • improve inter-institutional collaborations."

NIH Director Elias Zerhouni, M.D., gave the lead talk, which was followed by breakout sessions to solicit answers to a number of questions posed by the NIH. He reviewed a number of factors that have led to a decline in the number of physician-scientists conducting clinical and translational research, noting that NIH Directors since James Wyngaarden in 1979 had made attempts to address this problem largely without success, and that fully half of his Roadmap was focused on re-engineering the clinical research enterprise so as not to fail again. Dr. Zerhouni shared his belief that the steps implemented under the Roadmap to date were insufficient and would not produce the transformational event that was needed. This led him to the painful and unusual decision to cancel a Request for Applications for "Regional Translational Research Center Planning Grants," an action that provoked much criticism, in order to preserve Roadmap resources for the initiative that he was now introducing.

Dr. Zerhouni's stated goal is: "Provide the academic home and integrated resources needed to advance the new intellectual discipline of clinical and translational sciences, create and nurture a cadre of well-trained investigators, and advance the health of the nation by transforming patient observations and basic discovery research into clinical practice." He envisions this area as a new discipline because of the advances that have occurred both in knowledge and technology that require multidisciplinary teams with appropriate skills and sufficient resources to tackle the highly complex task of translating new knowledge into new ways of diagnosing, treating and preventing human illnesses. In 6-8 years he would like to see entities within Academic Medical Centers (AMCs) (flexibility on whether a department, center, or institute) that will have as components:

  • Research design, statistics, and regulatory affairs;
  • Biomedical informatics;
  • Career Development program (Curriculum; slots);
  • In-patient, outpatient, and community subject accrual sites;
  • Core Labs;
  • Pilot project program; and
  • Governance core.

Dr. Zerhouni stated that the NIH Institute Directors and he were committed to this initiative for the long term, and that funds would be transferred from the individual institutes to support this Roadmap initiative. He wants the NIH and the AMCs to work together to build a strong foundation for clinical and translational sciences.

Information:
Howard B. Dickler, M.D.
AAMC Division of Biomedical and Health Science Research
hdickler@aamc.org
(202) 828-0567

AAMC Comments on Human Research Protections at Non-U.S. Institutions

AAMC President Jordan J. Cohen, M.D., May 24 sent a letter to the Office of Human Research Protections (OHRP) regarding criteria recommended for making determinations of whether procedures prescribed by institutions outside the U.S. afford protections that are at least equivalent to those provided in the federal policy for the protection of human subjects. While endorsing the identification of seven specific protections afforded by the federal policy, Dr. Cohen urged that the recommended focus shift from a technical, U.S.-centric definition of what constitutes responsible measures for addressing the specific protections to the protections themselves and alternative ways to achieve them. The Department of Health and Human Services, where OHRP is located, originally solicited comments in a March 25 Federal Register notice [70 FR 15322].

Information:
Susan Ehringhaus, Sr. Director & Regulatory Counsel
AAMC Biomedical Health Sciences Research
sehringhaus@aamc.org
(202) 828-0543

Kupersmith Announced as New VA CRADO

Department of Veterans Affairs (VA) Under Secretary for Health Jonathan Perlin, M.D., May 25 announced that Joel Kupersmith, M.D., will be the next VA Chief Research and Development Officer (CRADO). Dr. Kupersmith is the former Dean of the School of Medicine and Graduate School of Biomedical Sciences, and Vice President for Clinical Affairs at Texas Tech University, where he also served as CEO of the Faculty Practice. Prior to joining Texas Tech, Dr. Kupersmith served as Professor and Director of the Clinical Pharmacology Section at the Mt. Sinai School of Medicine, Chief of Cardiology and V.V. Cooke Professor of Medicine at the University of Louisville, and Professor and Chairman of the Department of Medicine at the College of Human Medicine at Michigan State University. He is a graduate of New York Medical College where he completed his clinical training in internal medicine. Subsequently, he completed additional training in cardiology at Beth Israel Medical Center/Harvard Medical Center, and research training in the Department of Pharmacology at the Columbia College of Physicians and Surgeons. Currently, Dr. Kupersmith is a Scholar-in-Residence at both the AAMC and the Institute of Medicine. His appointment will be effective on May 31.

House Panel Provides 3 Percent Increase for NSF

The House Science, State, Commerce and Justice Appropriations Subcommittee May 24 marked up and approved an FY 2006 appropriations bill that includes $5.64 billion for the National Science Foundation (NSF). This represents an increase of $171 million (3.1 percent) over last year and $38 million above the budget request. Within the total, the subcommittee provided $4.38 billion for NSF research, $157 million (3.7 percent) over FY 2005.

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