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Washington Highlights: December 9, 2005

AAMC Signs Letter Opposing Student Loan Rescissions

The AAMC, along with 40 health organizations, sent a letter Dec. 5 to House and Senate Appropriators, urging them to reject the Administration's proposed rescissions to the Title VII and VIII health professions student loan programs. The Administration submitted to Congress Oct. 28 a package of rescission requests to offset hurricane relief efforts [see Washington Highlights, Nov. 4]. Included is a proposal to rescind funds from Health Profession Student Loan (HPSL), Primary Care Loan (PCL), Loans for Disadvantaged Students (LDS), and Nursing Student Loan (NSL) programs, which are administered by the Health Resources and Services Administration (HRSA).

The letter states, "Reclaiming the original federal contribution to these programs reneges on a national commitment to support a well-educated, well-distributed supply of health professionals who deliver care in our most needy communities. Eliminating these programs will not only neglect financially disadvantaged and minority students, but also threaten the stability of our nation's healthcare infrastructure."

Congress reportedly intends to include the proposals in the next hurricane relief package, which is expected to be attached to the FY 2006 Defense Appropriations bill.

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

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


House Agrees to Return HHS Funding Bill to Conference

The House of Representatives Dec. 7 agreed to send the FY 2006 Labor-HHS-Education appropriations bill (H.R. 3010) back to a conference with the Senate. The House rejected the initial conference report on the bill (H. Rept. 109-300) Nov. 17 by a 209-224 vote. Twenty-two Republicans voted against the conference report, with some objecting to reductions in rural health programs and others concerned about insufficient increases in education spending.

H.R. 3010 includes $142.5 billion in discretionary funding. The House leadership has rejected the idea of adding additional discretionary funds to the bill, and hopes to persuade moderate Republicans to support a revised conference agreement by shifting small amounts of funds to rural health programs

The Senate voted Nov. 18 to instruct its conferees to designate the $2.2 billion in the bill for the Low Income Home Energy Assistance Program (LIHEAP) as emergency spending, thus freeing funds under the bill's spending cap for other purposes, and to restore the 3.7 percent increase recommended for NIH in the Senate version of the bill. The House rejected two motions by Rep. David Obey (D-Wis.) to instruct its conferees to increase funding for LIHEAP.

The House appointed the following Members as conferees: Regula (R-Ohio), Istook (R-Okla.), Wicker (R-Miss.), Northup (R-Ky.), Granger (R-Texas), Peterson (R-Pa.), Sherwood (R-Pa.), Weldon (R-Fla.), Walsh (R-N.Y.), Lewis (R-Calif.), Obey, Hoyer (D-Md.), Lowey (D-N.Y.), DeLauro (D-Conn.), Jackson (D-Ill.), Kennedy (D-R.I.), and Roybal-Allard (D-Calif.).

House and Senate conferees are expected to meet early the week of Dec. 12 to revise the conference report.

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

GOP Leaders Outline New Budget Reconciliation Target

Republican leaders have reportedly agreed to a House-Senate conference budget reconciliation target of $45 billion in cuts over five years. While conferees have yet to be named, House and Senate staff from the committees with jurisdiction over the various titles of the House-Senate budget reconciliation bills are reportedly "pre-conferencing" before the Senate returns from recess the week of Dec.12.

House and Senate leadership are reported to have directed health committee chairs to find $7 billion in savings from the Medicare program and $6 billion from the Medicaid program. The Senate-passed budget reconciliation bill contains a net savings of $5.7 billion over 5 years to Medicare and a net savings of $4.3 billion over 5 years in Medicaid. The House-passed budget reconciliation bill contains $11.9 billion in net Medicaid savings over 5 years and no cuts to the Medicare program.

Despite the many differences between the two bills beyond Medicare and Medicaid, the House and Senate Republican leadership have resolved to complete the conference before Christmas. Senate Majority Leader Bill Frist (R-Tenn.) and House Speaker Dennis Hastert (R-Ill.) Dec. 2 released a joint statement commenting on the budget reconciliation process: "The Republican leadership for both the U.S. House and Senate are deeply committed to restraining spending, reforming government so that it is more effective and efficient, and accomplishing this task by the end of this year."

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

Bipartisan Bills Support Rural and Community Residency Training

A bipartisan group of Senators and Representatives Nov. 18 introduced legislation supporting residency training in community and rural settings. Introduced by Sens. Olympia Snowe (R-Maine), Jeff Bingaman (D-N.M.), Susan Collins (R-Maine), Byron Dorgan (D-N.D.), John Rockefeller (D-W.Va..), and Reps. Kenny Hulshof (R-Mo.) and John Tanner (D-Tenn.), the "Community and Rural Medical Residency Preservation Act of 2005" (S. 2071/ H.R. 4473) will ensure that CMS regulations and guidance no longer impede the ability of teaching programs to train resident physicians in ambulatory and rural settings.

Specifically, the legislation clarifies that supervising physicians would be allowed to volunteer their teaching time. It also ensures that any teaching costs associated with supervising physicians who are not volunteers would be based on negotiations between the hospital and the non-hospital setting, rather than a complicated formula requiring unreasonable administrative burdens on both the teaching programs and non-hospital training settings.

The bills are based on an amendment (S.A. 2402) filed by Sen. Snowe during the Senate floor debate on budget reconciliation. She was unable to offer the amendment before final passage.

The AAMC endorsed the legislation and is seeking cosponsors for the bills.

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

CMS Seeks PPAC Input On Quality Reporting

The Centers for Medicare and Medicaid Services (CMS) presented Dec. 5 an overview of its new national quality demonstration, the Physician Voluntary Reporting Program (PVRP), to the Practicing Physician's Advisory Council (PPAC) at PPAC's quarterly meeting. PVRP collects clinical information on 36 quality measures through special codes on claims data and reports back to physicians and physician group practices. CMS specifically requested input on: physician reaction to using claims data; how to maximize physician participation; other data sources or methods that could be used to capture data; and whether hospital quality data could be used to measure physician quality.

PPAC responded that claims data seemed the least burdensome data collection method in the short run, since most physicians still do not have Electronic Health Records (EHRs). It noted that there will still be significant costs associated with collecting data through claims, including educating coders, redesigning office flow, and adjusting current claims processing software. To maximize participation, CMS should implement pay-for-reporting, similar to the hospital pay-for-reporting system, and assure the physician community that the results will be confidential. Capturing data from electronic records could be assisted if CMS identified standard data to be collected and incorporated these into certification processes of EHRs. Finally, PPAC did not consider hospital data sufficient to measure physicians, in part because many physician services are performed in an office or outpatient environment.

Other items covered at the meeting include: update on the previous recommendations; update on Physician Regulatory Issues Team (PRIT); overview of final physician fee and outpatient fee schedule; overview of oncology demonstration project; and updates on competitive acquisition program (CAP) and recovery audit contractors (RAC).

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

CBO Assesses Potential Influenza Pandemic Impact

In response to a request from Senate Majority Leader Bill Frist (R-Tenn.), the Congressional Budget Office (CBO) Dec. 8 released a paper assessing the economic effects of a potential avian flu pandemic and discussing preparedness policy options. The paper examines the effects of both a severe pandemic, in which an estimated 2 million people would die in the United States and the gross domestic product (GDP) would decrease by about 5 percent, and a mild pandemic scenario, in which about 100,000 die and GDP drops by 1.5 percent.

CBO notes that preparedness for an influenza pandemic is dependent upon the nation's capacity to address public health emergencies, which has been under increased scrutiny following the 2001 terrorist attacks. The paper also asserts that the effectiveness of the nation's response to an outbreak will depend not only on the federal government but also on the state and local health authorities and the private sector. In the longer term, the nation needs to significantly expand its existing tools and resources to be adequately prepared for a serious influenza pandemic.

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