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Washington Highlights: September 16, 2005

Senate, House Delay Budget Deadline

In the wake of Hurricane Katrina, both the Senate and House have formally postponed until the end of October the deadlines for their respective Budget committees to report legislation to cut mandatory spending by nearly $35 billion over the next five years. Under the terms of the FY 2006 budget resolution approved in April, the Budget committees were to report reconciliation bills to reduce mandatory spending by $34.7 billion over 5 years by Sept. 16.

Senate Majority Leader Bill Frist (R-Tenn.) and Senate Budget Committee Chair Judd Gregg (R-N.H.) released a joint statement Sept. 12 delaying until Oct. 26 the deadline for the Senate Budget Committee to report its mandatory spending reconciliation bill. The House joined the Senate Sept. 13 when Budget Committee Chair Jim Nussle (R-Iowa) informed the authorizing committees that his committee would mark up its spending reconciliation bill the week of Oct. 24. The authorizing committees, which have jurisdiction over the programs slated for spending cuts, must report their recommendations to the Budget committees about a week ahead of the reporting deadline to permit budget committee staff time to assemble the proposals into a single bill

GOP leaders were concerned that postponing the deadline established in the budget resolution would strip the reconciliation bill of the special protections it enjoys from filibusters on the Senate floor. However, the Senate Parliamentarian has indicated the decision to delay "will not jeopardize the privileged status of any reported reconciliation bill."

But delaying the budget deadline may not make the task of passing the spending cuts any easier as Democrats and moderate Republicans are lining up to oppose efforts to reduce programs such as Medicaid and other programs for the poor that are likely targets for spending cuts in the reconciliation bill. Republican leaders insist that reforming entitlement programs to make them more efficient is even more necessary now because of the anticipated costs of the Katrina relief and rebuilding efforts.

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

Panel Presents to MedPAC on Pay-for-Performance

At the Sept. 8-9 meeting of the Medicare Payment Advisory Commission (MedPAC), a panel of industry experts presented their perspectives of using quality measures and pay-for-performance (P4P) for private plans.

The panelists were Jack Ebeler, President and Chief Executive Officer of the Alliance of Community Health Plans (ACHP); Samuel Nussbaum, M.D., Executive Vice President and Chief Medical Officer of Wellpoint, Incorporated; and Peggy O'Kane, President and founder of the National Committee for Quality Assurance (NCQA).

MedPAC specifically requested this panel to review incorporating quality measures into Medicare Advantage plans, but the discussion expanded to the implications of pay-for-performance in the Medicare fee-for-service program and potential measuring of quality across payers and communities. Panelists discussed the importance of measure selection and implementation. All three panelists also emphasized the importance of incentive design.

When questioned further by the commissioners about financing incentives, panelists mentioned that perceived or actual reductions would not be well received. Some recommendations for funding pay-for-performance could include withholding increases,
or funding an incentive pool from the savings of the programs. Some panelists noted that the size of the incentive needs to be great enough to influence behavior. No formal recommendations regarding pay-for-performance were discussed by the commission, but they plan to continue evaluating P4P options.

Other topics discussed at the two-day meeting include: valuing services in the physician fee schedule, measuring physician resource and quality, analysis of home health care margins and case-mix, growth in outpatient therapy spending, review of Maryland hospital rate setting, review of Medicare's adjustments for geographic differences in underlying wage levels, and review Medicare payment changes on oncology services.

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

Congress Passes Student Aid Forgiveness Legislation In Response to Hurricane Katrina

As a result of numerous school closings in the path of Hurricane Katrina, the House moved Sept. 8 to provide relief to students forced to withdraw from schools closed due to natural disasters. The House unanimously approved the "Student Grant Hurricane and Disaster Relief Act" (H.R. 3668), proposed by Rep. Bobby Jindal (R-La.), which gives the Secretary of Education the ability to waive the Title IV federal assistance programs' repayment requirements when a natural disaster is recognized by the President. The Senate passed H.R. 3668 without amendment by Unanimous Consent on Sept. 15.

"This bill fulfills an urgent need to provide flexibility and assistance to students who have been forced to put their higher education on hold as a result of Hurricane Katrina," said Rep. Jindal. "Students in my district are facing hardships on numerous fronts, from the loss of their homes and communities to the damage and closure of college campuses. As students cope with these unprecedented challenges, we should not add to their burden by requiring those who have been forced to withdraw from college to repay student aid."

Under current law, students with grants and scholarships offered under Title IV federal assistance programs (including Pell Grants, the Supplemental Educational Opportunity Grant program, Leveraging Educational Assistance Partnerships program, and scholarships offered under the GEAR UP and TRIO programs) must repay the awarded funds if they fail to complete the required academic year or semester.

Information:
Matthew Shick, Senior Legislative Analyst
AAMC Government Relations
mshick@aamc.org
(202) 862-6116

HHS Secretary Names AHIC Commissioners

Secretary of Health and Human Services Mike Leavitt Sept. 13 named 16 commissioners to serve on the American Health Information Community (AHIC). During their two-year terms, the commissioners will advise the Secretary on how to assure broad-based adoption of interoperable electronic health records within the next 10 years. Secretary Leavitt will chair the AHIC, which has scheduled its first meeting for Oct. 7.

According to a press release, Secretary Leavitt said he "selected commissioners who represent key interests and have the broad support of their peers." In the press release, National Coordinator for Information Technology David Brailer, M.D., added that the "public-private nature of this group is designed to ensure that this nationwide transition to electronic health records…occurs in a smooth, market-led way."

The AHIC commissioners include:

  • Scott Serota, President/CEO, Blue Cross Blue Shield Association;
  • Douglas Henley, M.D., Executive Vice President, American Academy of Family Physicians;
  • Lillee Smith Gelinas, RN, Chief Nursing Officer, VHA Inc.;
  • Charles Kahn III, President, Federation of American Hospitals;
  • Nancy Davenport-Ennis, CEO, National Patient Advocate Foundation;
  • Steven Reinemund, CEO/Chairman, PepsiCo;
  • Kevin Hutchinson, CEO, SureScripts;
  • Craig Barrett, Chairman, Intel Corporation;
  • E. Mitchell Roob, Secretary, Indiana Family and Social Services Administration;
  • Mark McClellan, M.D., Administrator, Centers for Medicare and Medicaid Services;
  • Julie Gerberding, M.D., Director, Centers for Disease Control and Prevention;
  • Jonathan Perlin, M.D., Under Secretary for Health, Department of Veterans Affairs;
  • William Winkenwerder Jr., M.D., Assistant Secretary of Defense;
  • Mark Warshawsky, Assistant Secretary for Economic Policy, Department of Treasury;
  • Linda Springer, Director, Office of Personnel Management; and
  • Michelle O'Neill, Acting Under Secretary for Technology, U.S. Department of Commerce.

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

COGME Discusses Potential Report Topics

The Council on Graduate Medical Education (COGME), which last met in July 2004, convened Sept. 13-14 to discuss topics for future reports, receive information regarding physician workforce issues and listen to public comments.

Council members spent significant time considering topics that could be the subject of future COGME reports including the role of graduate medical education (GME) training in enhancing patient access to physicians, flexibility regarding GME training opportunities, and the economics and financing of GME. The members chose two topics for future reports: whether a voluntary or mandatory National Service for medical professionals would be appropriate as a way for physicians to give back to society in return for the benefit of acquiring medical education and what policy changes can be made with regard to GME funding to facilitate more flexible graduate medical education training.
The council also heard a presentation by Saralyn Mark, M.D., senior medical advisor at the Department of Health and Human Services Office on Women's Health, who presented a number of recommendations to facilitate re-entry into the physician workforce, including:

  • collecting data on the number of inactive health care professionals who intend to re-enter a clinical career;
  • developing an institutional database and a national directory of re-entry programs;
  • learning from nursing re-entry programs;
  • conducting program evaluations;
  • exploring means to advertise and recruit for the program;
  • making re-entry programs mandatory;
  • looking at ways in which re-entry programs can address educational and personal needs; and
  • exploring the possibility of requiring graduates of federally funded re-entry programs to provide services to an underserved community for at least one year after graduation.
    The council decided to raise the issue of workforce re-entry at its next meeting, although concern was expressed that more specific data are needed (i.e., number of physicians re-entering the workforce) in order for COGME to make specific recommendations in this area.

During the public comment period, there were additional suggestions for topics for COGME consideration, such as how non-physician health care providers (i.e., physician assistants, nurse practitioners) can affect the responsibilities of physicians in the delivery of patient care and the effect of gender on physician work-related decisions, including work hours and choice of medical specialty.

The next meeting will be held in April 2006.

Information:
Diana Mayes, Specialist
AAMC Health Care Affairs
dmayes@aamc.org
(202) 828-0498