Washington Highlights: January 6,
2006
Contents
Prior Issues
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President Signs Appropriations Bills
President Bush Dec. 30 signed the FY 2006 Labor, Health and Human
Services, and Education appropriations bill (H.R.
3010, P.L. 109-149), which provides $142.5 billion in discretionary
funding. The President also signed Dec. 30 the FY 2006 Defense appropriations
bill (H.R.
2863, P.L. 109-148), which includes a 1 percent across-the-board
cut of all discretionary spending except for those programs under
the Department of Veterans Affairs, including VA medical care and
research [see Washington Highlights, Dec.
2].
The following funding levels include the 1 percent across-the-board
cut:
- $28.4 billion is included for the National Institutes of Health (NIH),
a cut of $81 million (0.3 percent) below FY 2005.
- $295 million is provided for Title VII and VIII health professions
programs, a 34.5 percent cut. This includes a 51.5 percent cut to
the Title VII health professions programs, and a 0.7 percent cut to
the Title VIII nursing programs.
- $125.5 million for the National Health Service Corps, a decrease of
$5.9 million (4.5 percent) below FY 2005.
- $319 million for the Agency for Healthcare Research and Quality
(AHRQ), level with last year. All money is derived from transfers
from other agencies, so this funding is not subject to the 1 percent
across-the-board cut.
- $495 million for the Health Resources and Services Administration's
Bioterrorism Hospital Preparedness program, which is $19 million less
than the program received in FY 2005.
- $5.83 billion for the Centers for Disease Control and Prevention for
a $1.33 billion increase. This includes $1.577 billion for the state
and local terrorism preparedness and response programs, $46 million
less than last year.
Information:
Dave Moore, Senior Director
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525
AAMC Joins AMA Amicus Brief on LabCorp v.
Metabolite
The AAMC Dec. 23 joined with the American Medical Association (AMA)
and several other medical organizations in filing a "friend
of the court" brief
in a patent case now before the U.S. Supreme Court. LabCorp v.
Metabolite concerns a patent on a diagnostic test for blood
homocysteine levels. The controversy concerns a single claim in
the patent that embraces the concept of correlating homocysteine
levels and deficiency in B vitamins, a factor in cardiovascular
and other disorders. Metabolite had sued LabCorp, a clinical diagnostics
firm, for infringing this claim of the patent. The lower courts
ruled that the claim provides the patent licensee (Metabolite) with
the right to exclude others from performing this correlation, no
matter what methods are used to determine homocysteine levels.
In October, the Supreme Court unexpectedly agreed to hear the question
whether the patent claims a natural law or principle, which are
not patentable under Federal statute. Our amicus brief argues that
the claim is illegal and that a physician who merely performs the
mental act of correlating a test result with the vitamin deficiency
should not be liable for patent infringement. "A physician
who learns - from the medical literature, colleagues, continuing
medical education, or other public sources - of the naturally occurring
association between homocysteine and vitamin deficiency cannot put
that knowledge out of mind. Knowledge of basic scientific facts
such as a correlation between a test result and a possible disease
state is essential to the practice of medicine."
While the issue may seem arcane, the case is being closely followed
by business, medical, and legal communities and by patient advocates.
Previous court deliberations on what constitutes "patentable
subject matter" have had far reaching consequences. AAMC and
its fellow amici believe that upholding the contested claim could
have highly deleterious consequences for medical practice and the
public health.
Information:
Susan Ehringhaus, Sr. Director & Regulatory Counsel
AAMC Biomedical Health Sciences Research
sehringhaus@aamc.org
(202) 828-0543
Stephen Heinig, Lead Science Policy Analyst
AAMC Biomedical Health Sciences Research
sheinig@aamc.org
(202) 828-0488
President Signs Cord Blood Bill
President Bush Dec. 20 signed legislation (H.R.
2520) to improve the collection of stem cells from umbilical
cord blood for treatment and research. The House originally passed
the bill May 24 [see Washington Highlights, May
27]. The Senate approved an amended version of the bill Dec.
16, and the House passed it the following day.
The Stem Cell Therapeutic and Research Act of 2005 (P.L.
109-129) authorizes $15 million a year for fiscal years 2007-2010
for the collection and storage of cord blood stem cells, with the
goal of reaching a total inventory of 150,000 units. The law also
merges the existing national bone marrow transplant system and with
the new cord blood program, and authorizes $186 million over 5 years
for new program, to be named the C.W. Bill Young Cell Transplantation
Program.
Information:
Dave Moore, Senior Director
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525
GAO Issues Report on FDLP Consolidation Loans
The Government Accountability Office (GAO) Jan. 5 released a report
requested by House Education and Workforce Committee Ranking
Member George Miller (D-Calif.) on the budgetary effects of consolidation
loans offered through the Federal Direct loan program (FDLP). The
report, entitled "Potential Effects of Making Fiscal Year 2006
Consolidation Loans Exclusively through the Direct Loan Program,"
estimates $3.1 billion could be saved on the basis of subsidy cost
estimates presented in the President's budget for FY 2006.
The GAO was also asked to consider the extent and reasons this
estimated budgetary effect might change as subsidy costs are re-estimated
in future years and how Federal Family Education Loan program (FFELP)
lenders and borrowers might be affected if consolidation loans were
made exclusively through FDLP. The GAO stresses that the estimated
savings in the report rely heavily on underlying assumptions, including
economic conditions, such as interest rates; loan performance, such
as the portion of loans that default; and loan volume. Additionally,
the report finds providing consolidation loans exclusively through
FDLP would "reduce lender revenues, the total volume of consolidation
loans originated, and certain borrower benefits, such as repayment
incentives provided by lenders, including lower interest rates,
for on-time borrower repayments."
Information:
Matthew Shick, Senior Legislative Analyst
AAMC Government Relations
mshick@aamc.org
(202) 862-6116
AHRQ Seeks Input on Effective Health Program
The Agency for Healthcare Research and Quality (AHRQ) is hosting
a Jan.
11 forum to solicit input on topics for its new Effective Health
Care Program. This program, authorized under Section 1013 of the
Medicare Modernization Act, reviews the effectiveness of alternative
treatments for significant health conditions. The program's first
report was released Dec. 14 [see Washington Highlights, Dec.
16].
Information:
Erica Froyd, Director, Public Health and Research Legislative Affairs
AAMC Government Relations
efroyd@aamc.org
(202) 828-0525
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