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Washington Highlights: September 23, 2005

House Temporarily Extends Higher Education Act

The House Sept. 20 approved a three-month extension of the Higher Education Act (HEA). House Education and the Workforce Chair John A. Boehner (R-Ohio) Sept. 15 introduced the "Higher Education Extension Act of 2005" (H.R. 3784). The bill extends the primary student financial assistance legislation to Dec. 31, 2005. Congress was expected to reauthorize the HEA this fall; however, in the wake of Hurricane Katrina and nomination hearings for the Chief Justice of the Supreme Court, a temporary extension is necessary to avoid the bill's Oct. 1 expiration.

In addition to the student financial aid programs, the HEA authorizes and oversees institutional aid, teacher quality enhancement, institutional accreditation, graduate and postsecondary improvement programs, and additional programs under the jurisdiction of the Department of Education.

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

Grassley, Baucus Introduce Katrina Relief Package for Evacuees and Providers

Senate Finance Committee Chair Charles Grassley (R-Iowa) and Ranking Minority Member Max Baucus (D-Mont.) Sept. 15 introduced "The Emergency Health Care Relief Act of 2005" (S. 1716). The bill is designed to ensure temporary health care coverage for vulnerable Katrina victims.

Specifically, the legislation streamlines Medicaid's current program requirements to allow states to temporarily enroll eligible Katrina victims into Medicaid; helps employers in affected states maintain their commitment to providing private health care insurance to employees; and waives late enrollment requirements for Medicare Part B beneficiaries.

Through expanded federal assistance to states, flexibility with Medicare bad debt requirements and the creation of a disaster relief fund for providers experiencing a decrease or increase in patient volume, the bill also helps providers to cover their costs associated with day to day operations and providing care to Katrina evacuees.

In a Sept. 20 letter, AAMC President Jordan Cohen, M.D. applauded Senators Grassley and Baucus for their leadership in proposing the legislation. The letter states, "The nation's medical schools and teaching hospitals extend to the communities of the Gulf Coast region their deepest sympathies for hardships caused by Hurricane Katrina. Partnering with their fellow medical schools and teaching hospitals in Louisiana, Mississippi and Alabama, and local, state and federal governments, teaching hospitals and medical schools are responding by temporarily

relocating medical students and residents; helping dislocated medical researchers salvage important research, and sending to the affected region medical supplies and teams to provide much needed patient care."

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

Conservative House Republicans Propose Offsets for Katrina Spending

On Sept. 21, the House Republican Study Committee (RSC), a group of more than 100 House conservatives, released "Operation Offset," a series of proposals that would reduce federal mandatory and discretionary spending by $1 trillion over 10 years to help offset the costs associated with rebuilding the hurricane-ravaged Gulf Coast.

RSC Chair Rep. Mike Pense (R-Ind.) stated, "As we begin to rebuild, let us also do what every other American family would do in like circumstances and expects this Congress to do: Let's figure out how we are going to pay for it. Congress must insure that a catastrophe of nature does not become a catastrophe of debt for our children and grandchildren."

"Operation Offsets" proposes spending cuts for a variety of programs of interest to medical schools and teaching hospitals, including Medicare, Medicaid, public health and education.

Medicare:

  • Delay the implementation of the Medicare prescription drug bill for one year;

  • Restructure Medicare's Cost-Sharing Requirements;

  • Increase Medicare beneficiary premiums from 25 to 30 percent of the cost of Part B benefits, beginning in 2006; and

  • Impose a Home Health Co-payment of 10 percent.

Medicaid/SCHIP:

  • Block Grant Medicaid and Index for Population and Inflation;

  • Increase allowable co-pays for Medicaid;

  • Reduce Medicaid Administrative Spending;

  • End the Redistribution of Unused Federal Funds from SCHIP; and

  • Eliminate Childless Adult Coverage in SCHIP

In the area of public health, the report includes proposals to provide level funding for community health centers, reduce funding for the Centers for Disease Control and Prevention, and restrict first-responder grants to large, at risk communities. The RSC also proposes eliminating subsidized loans for graduate students.

House and Senate GOP leadership reaction to "Operation Offsets" has been mixed, particularly in light of uncertainties over the total cost of relief efforts for Hurricane Katrina and whether additional efforts will be needed in the wake of Hurricane Rita.

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

NCRR Starts Countdown On Clinical Research Initiatives

The advisory council of the National Institutes of Health's National Center for Research Resources (NCRR) met Sept. 15 and received reports from Acting Director Barbara Alving, M.D., and Anthony Hayward, M.D., Ph.D., NCRR Associate Director of Clinical Research, on NIH's plans for transforming extramural clinical and translational research.

As announced in a Sept. 8 notice, NIH and NCRR will release Oct. 12 a request for applications (RFA) for new "Clinical and Translational Science Awards." NIH Director Elias Zerhouni, M.D., proposed last May [see Washington Highlights, May 27] the creation of such awards in an effort under the NIH Roadmap to create designated "homes" for clinical research that integrate or connect disparate centers and elements of clinical research infrastructure as now exist. The new RFA will be the first major step in the new initiative. Dr. Hayward noted that planning grants also will be available for selected institutions. A "pre-submission" meeting for representatives of institutions interested in applying will be held in Arlington, Virginia, on Oct. 17. Dr. Alving noted that funds to support the new projects will derive in great part from allocations to the NIH Roadmap, but other funds also will come from NCRR's future budgets.

Dr. Hayward also informed the counsel that the management of NIH's K30 awards supporting development of curricula in clinical and translational research training is being transferred to the NCRR, and that the number of current awards will be raised from 49 to 51.

Information:
Howard Dickler, Director
AAMC Division of Biomedical and Helath Sciences Research
hdickler@aamc.org
(202) 828-0567

Stephen Heinig, Lead Science Policy Analyst
AAMC Biomedical Health Sciences Research
sheinig@aamc.org
(202) 828-0488

AAMC Supports Recognition Of Multiple Principal Investigators

The AAMC strongly supports a federal initiative to recognize multiple principal investigators (PIs) on sponsored research projects, including National Institutes of Health (NIH) extramural awards, as a means to foster multidisciplinary research. However, in a Sept. 15 reply to a request for public comments from NIH and other agencies, the AAMC qualified its recommendation on condition that "the policy does not denigrate the well established understanding of the meaning of 'principal investigator' or diminish the value and irreplaceable role" of science project management. Named PIs should include only those individuals who share the major authority and responsibility for leading and directing a project, intellectually and logistically. AAMC also suggested that institutions proposing multidisciplinary research projects with more than one PI should be required to designate a project/program director or similar position to ensure scientific and administrative accountability.

Information:

Howard Dickler, Director
AAMC Division of Biomedical and Helath Sciences Research
hdickler@aamc.org
(202) 828-0567