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Washington Highlights: May 12, 2006

Readership Survey

Leadership Still Negotiating House Budget Resolution

House Majority Leader John Boehner (R-Ohio) announced late in the day on May 11 that he would not bring the FY 2007 budget resolution (H.Con.Res. 376) to the floor for a vote, as anticipated. He hopes to bring it to the floor next week.

The budget approved by the House Budget Committee March 29 includes the $873 billion discretionary spending cap proposed by the President [see Washington Highlights, March 31]. In response to the efforts of Republican moderates, led by Reps. Mike Castle (Del.) and Nancy Johnson (Conn.), and the combined advocacy of the health, education, and labor communities, the House leadership agreed to move funds from defense and foreign aid to domestic programs. On May 9, the House Appropriations Committee approved its subcommittee allocations (also known as 302(b) allocations). The Labor-HHS-Education subcommittee received an allocation of $141.9 billion, which is $843 million (0.6 percent) over the FY 2006 enacted level and $4.136 billion (3 percent) more than the President proposed.

The AAMC joined more than 800 health, education, and labor organizations on a May 8 letter to the House Committee leadership. The letter, organized by the Coalition for Health Funding and the Committee on Education Funding, calls on Congress to add $7 billion to the budget in discretionary funding for health, education, and labor programs.

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

NIH Seeks Comments on NRSA Policy Changes

The National Institutes of Health (NIH) May 3 announced it is seeking comments on proposed policy changes to the Ruth L. Kirschstein National Research Service Award (NRSA) program. The NIH is proposing changes to its policies for funding tuition, fees, and health insurance for these awards, arguing that these costs are increasing at rates that are beyond NIH's fiscal capacity to sustain. The new policy would institute a cap on the reimbursement of tuition and fees of $16,000 per year for pre-doctoral trainees, $4,500 per year for post-doctoral trainees, and $21,000 per year for trainees in a combined dual-degree training program. The NIH also proposes providing an additional fixed amount of funding toward reimbursement of health insurance costs.

The NRSA program supports individual and institutional training grants at the pre-doctoral and post-doctoral levels. Last November, AAMC submitted a comment letter to NIH and was among the presenters at a Town Hall meeting convened to address several NRSA changes then under consideration [see Washington Highlights, Dec. 2, 2005].

Information:
Jodi Lubetsky, Staff Associate
AAMC Biomedical Health Sciences Research
jlubetsky@aamc.org
(202) 828-0485

MedPAC Chair and Vice Chair Reappointed

The Comptroller General of the United States has reappointed the chair and vice chair and appointed four new members to the Medicare Payment Advisory Commission (MedPAC), an independent federal body that advises Congress on issues affecting the Medicare program.

The Commission comprises 17 members who bring diverse expertise in the financing and delivery of health care services. Commissioners are appointed to three-year terms (subject to renewal) by the Comptroller General and serve part time. Appointments are staggered; the terms of five or six commissioners expire each year.

Despite already serving two terms (6 years) - the traditional length of service of MedPAC commissioners - chair Glenn M. Hackbarth, J.D., and vice chair Robert D. Reischauer, Ph.D., each were reappointed to another 3-year term. Mr. Hackbarth, currently an independent consultant, was chief executive officer and one of the founders of Harvard Vanguard Medical Associates, a multispecialty group practice in Boston that serves as a major teaching affiliate of Harvard Medical School. He also has held positions at the Department of Health and Human Services, including deputy administrator of the Health Care Financing Administration (now Centers for Medicare and Medicaid Services). Dr. Reischauer is the president of The Urban Institute and was director of the Congressional Budget Office (CBO) from 1989 to 1995.

The newly appointed members, whose terms will expire in 2009, are:

  • Mitra Behroozi, J.D., executive director of 1199SEIU Benefit and Pension Funds, where she oversees eight major benefit and pension funds for health care workers;
  • Karen R. Borman, M.D., professor of surgery and vice chair for surgical education at the University of Mississippi Medical Center;
  • Ronald D. Castellanos, M.D., an independent practicing physician specializing in urology in Fort Myers, Florida; and
  • Douglas Holtz-Eakin, Ph.D., director of the Maurice R. Greenberg Center for Geoeconomic Studies at the Council on Foreign Relations. He served as director of the CBO from 2003 to 2005 and chief economist for the President's Council of Economic Advisors from 2001 to 2002.

Information:
Karen Fisher, Sr. Director, Health Care Affairs
AAMC Health Care Affairs
kfisher@aamc.org
(202) 862-6140

Denise Dodero, Sr. Director, Health Care Affairs
AAMC Health Care Affairs
ddodero@aamc.org
(202) 828-0493

House Appropriations Committee Freezes VA Research Funding

The House Committee on Appropriations May 10 approved a $94.7 billion FY 2007 spending bill for the Department of Veterans Affairs (VA). The bill includes 25.4 billion for Medical Services, a $2.6 billion increase over FY 2006, but $100 million below the President's request. During the mark-up, this $100 million was shifted from Medical Services to Medical Administration to "ensure that care is being administered effectively and to help avoid potential shortfalls in funding." The bill does not contain the Administration's proposed copays and enrollment fees.

The FY 2007 VA Medical and Prosthetics Research program is frozen at $412 million despite an amendment offered by Rep. David Price (R-N.C.) that would have added an additional $23 million. The proposed amendment failed on a party line vote. The minor construction budget is increased by $12 million to start upgrading VA medical research facilities nationwide.

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

Senate Republicans Pull Medical Liability Bills

Senate leaders May 8 pulled two Republican-supported medical liability reform bills [see Washington Highlights, May 5] from consideration on the Senate floor, following two unsuccessful votes to invoke cloture and avert filibusters.

The 48-42 vote to limit debate over the "Medical Care and Access Protection Act of 2006" (S. 22) fell short of the 60 votes needed to invoke cloture. The cloture vote on the bill, which was introduced by Sen. John Ensign (R-Nev.), was split primarily along party lines, with three Republicans voting against cloture: Sens. Richard Shelby (Ala.), Lindsey Graham (S.C.), and Mike Crapo (Idaho). Republican Sens. Sam Brownback (Kan.), Conrad Burns (Mont.), Tom Coburn (Okla.) and John McCain (Ariz.) did not vote.

A subsequent 49-44 vote to limit debate over the "Healthy Mothers and Healthy Babies Access to Care Act" (S. 23) also fell short of the required 60 votes. Sens. Shelby, Graham, and Crapo voted against cloture for S. 23, which had been introduced by Sen. Rick Santorum (R-Pa.). Republican Sens. Brownback, Burns, and McCain did not vote.

As a member of the Health Coalition on Liability and Access (HCLA), the AAMC has endorsed S. 22 and S. 23.

Information:
Christiane Mitchell, Senior Legislative Analyst
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526

CMS Publishes Medicare Psychiatric Facility Final Rule

The Centers for Medicare and Medicaid Services (CMS) May 9 published its annual Medicare final rule for the inpatient psychiatric facility (IPF) prospective payment system (PPS) in the Federal Register. Changes will be effective for discharges occurring July 1, 2006, through June 30, 2007 (known as "rate year" (RY) 2007).

Under the final rule changes, CMS estimates that Medicare payments to psychiatric facilities will increase by 4.0 percent in RY 2007. Major teaching psychiatric facilities will see a 4.3 percent average increase in payments compared to a 3.8 percent increase for non-teaching psychiatric facilities.

For RY 2007, CMS retains the current teaching adjustment of 5.15 percent to the federal per diem base rate. The final rule also defines a new graduate medical education (GME) program as a medical education program that received initial accreditation by the appropriate accrediting body or begins training residents on or after Nov. 15, 2004.

CMS increases the fixed-dollar loss threshold amount for outlier payments from $5,700 to $6,200 to keep the overall estimated outlier payments at two percent of total payments.

Information:
Karen Fisher, Sr. Director, Health Care Affairs
AAMC Health Care Affairs
kfisher@aamc.org
(202) 862-6140

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

HRSA Announces Personnel Changes

Elizabeth Duke, Ph.D., Administrator of the Health Resources and Services Administration (HRSA), announced May 9 that Bureau of Primary Health Care Associate Administrator Michelle Snyder will be Associate Administrator of the Bureau of Health Professions, effective May 28. Current head of health professions, Kerry Nesseler, will be the first director of the new Office of Commissioned Corps Affairs, effective May 15. The Bureau of Health Professions administers the Title VII and VIII health professions and nursing education and training programs.

Additionally, National Health Service Corps (NHSC) Acting Director Jennifer Burks will serve as a senior policy analyst in the HRSA Office of Planning and Evaluation. A new NHSC director is not named. Dr. Duke states these changes are designed to realign HRSA leadership, noting that "the (HHS) Secretary has already announced a major transformation of the commissioned corps and other changes to our operations are likely to result from the Department's response to the White House recommendations on emergency preparedness."

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

FDA, APHIS and NIH Sign MOU to Promote Laboratory Animal Care

The Food and Drug Administration (FDA), Animal and Plant Health Inspection Service (APHIS), and the National Institutes of Health (NIH) have announced a Memorandum of Understanding (MOU) regarding the framework for reciprocal cooperation that will assist each agency in meeting its responsibilities in promoting laboratory animal care and welfare. The MOU, which became effective Feb.14, was published in the May 3 Federal Register (71 FR 26095). The substance of the agreement provides for the sharing of information between the individual agencies regarding animal welfare matters. Specifically, FDA, APHIS and NIH agree:

  • To share information contained in their respective registries/inventories/listings of organizations that fall under their purview.
  • To provide one another with information concerning significant adverse findings regarding animal care and use at organizations investigated, inspected, or site-visited, and the actions taken by the agency in response to the findings.
  • To provide one another with information regarding evidence of serious noncompliance with required standards or policies for the care and use of laboratory animals at organizations that fall under the authority of the participating agencies.
  • To coordinate successive evaluations and to avoid redundant evaluations of the same entities.
  • To consult and coordinate with each other on regulatory or policy proposals and significant policy interpretations involving animal care and use under consideration by each agency, and
  • To provide each other with resource persons for scientific and educational seminars, speeches, and workshops related to laboratory animal welfare.

Information:
Tony Mazzaschi, Senior Associate Vice President
AAMC Biomedical Health Sciences Research
tmazzaschi@aamc.org
(202) 828-0059