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Washington Highlights: April 28, 2006

VA Research Letter Unveiled at Senate Committee Hearing

The Senate Committee on Veterans Affairs April 27 held a hearing entitled "VA Research: Investing Today to Guide Tomorrow's Treatment." At the hearing Chairman Larry Craig (R-Idaho) announced that he and Ranking Member Daniel Akaka (D-Hawaii), along with 60 additional co-signers, had sent a Dear Colleague letter to Sens. Kay Bailey Hutchinson (R-Texas) and Diane Feinstein (D-Calif.), the Chair and Ranking Member of the Appropriations Subcommittee on Military Construction and Veterans Affairs. The letter urges the appropriators to increase FY 2007 funding for the VA Medical and Prosthetics Research program to $432 million, a $20 million (4.9 percent) increase over FY 2006. The Friends of VA Medical Care and Health Research (FOVA) submitted testimony on the role of VA Research in the recruitment of physicians and on the FY 2007 appropriations, recommending $460 million for the VA Research program.

Undersecretary for Health Jonathan Perlin, M.D., Ph.D., and Chief Research and Development Officer Joel Kupersmith, M.D., testified on behalf of the Department of Veterans Affairs and lauded the long standing affiliations between the VA and academic institutions. A second panel of VA investigators echoed the praise of VA-academic collaborations and stressed the importance of additional VA funding for research and facilities improvement to sustain these essential affiliations.

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

AAMC Comments on HHS Financial Aid Guidelines

The AAMC April 28 sent a letter to Elizabeth M. Duke, Ph.D., administrator of the Health Resources and Services Administration (HRSA), recommending the eligibility requirements for all Department of Health and Human Services (HHS) loan programs be amended to allow for the waiver of parental financial information in extraordinary circumstances. The letter states, "As the administrators of these loans, financial aid officers have first-hand knowledge of the operation of these programs and of the students who participate in them. Considering this familiarity and expertise, financial aid officers' professional discretion is the best tool to evaluate a student's financial situation."

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

Budget Resolution Still Stalled in House

House GOP leaders spent the first week back in Washington following the April recess attempting to negotiate a deal on the FY 2007 budget resolution (H.Con.Res. 376). Leaders were working to resolve differences between Republicans on earmark rules, emergency spending restrictions and the level of spending on domestic programs.

Meanwhile, the House Appropriations Committee began to make plans to move forward with the FY 2007 spending bills without a budget deal. Congressional sources have indicated that a "deeming resolution" capping discretionary spending at $873 billion most likely will be attached to the first bill the House Appropriations Committee considers. An $873 billion spending cap would equal the President's budget request as recalculated by the Congressional Budget Office.

The conservative Republican Study Committee has indicated it will not support a budget plan that calls for than $873 billion in discretionary spending. This means that even if the House passes a budget resolution, it will have a difficult time reconciling it with the version (S.Con.Res. 83) passed by the Senate on March 16, which in effect includes an additional $16 billion in discretionary spending.

The House Appropriations Committee has released a tentative schedule for consideration of the FY 2007 appropriations bills at the subcommittee and committee levels and on the House floor. The schedule calls for the House to pass all appropriations bills by the July 4th recess. Subcommittee mark-ups of individual bills are set to begin the week of May 1, and the full committee is scheduled to approve the 302(b) subcommittee allocations on May 9, when it also considers its first bill, agriculture appropriations.

The Labor-HHS-Education Subcommittee is scheduled to mark up its FY 2007 bill on June 7, with full committee action on June 13, and floor consideration tentatively for June 21.

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

HHS Announces Status of Medicaid DSH Proposed Rule

The Department of Health and Human Services (HHS) announced April 24 in its Semi-Annual Agenda (71 Fed. Reg. 22538) that final action on an August 26, 2005, proposed rule establishing new reporting and auditing requirements for state disproportionate share hospital (DSH) payments is scheduled for January 1, 2007.

Under the proposed rule (70 Fed. Reg. 50262), states would have to provide the following information for each DSH hospital: Medicaid inpatient utilization rates; low income utilization rates; supplemental/enhanced Medicaid payments; indigent care revenues; transfers between the hospital and state/local government entities as a precondition to receiving Medicaid patients; and uncompensated care costs. The AAMC submitted an October 24, 2005, comment letter that highlighted deficiencies in the proposed rule that would have a serious detrimental impact on Medicaid DSH hospitals.

Information:
Christiane Mitchell, Director, Federal Affairs
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526