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Washington Highlights: May 26, 2006

AAMC Opposes Student Loan Rescissions

AAMC President Jordan J. Cohen, M.D., in a May 24 letter urged the House and Senate Appropriations Committees not to approve any further rescissions to the Title VII health professions student loan programs. In each of the past two years, Congress has rescinded the "unobligated balance" from the Health Professions Student Loan, Primary Care Loan, Loans for Disadvantaged Students, and Nursing Student Loan programs. In addition, the Administration's FY 2007 budget proposes to recall the "Federal portion of all of the liquid assets of such fund," which it estimates to be over $100 million.

In the letter, Dr. Cohen asks appropriators to consider that the demand for these affordable loans will increase in the coming years as interest rates rise and that these programs pose no burden on the American taxpayer. The letter also states, "Rescinding funds from these programs not only neglects financially disadvantaged and minority students, but also threatens the stability of our nation's healthcare infrastructure."

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

House Passes FY 2007 VA Appropriations

The House May 19 passed the FY 2007 Military Quality of Life and Veterans Affairs appropriations bill (H.R. 5385). The bill includes $412 million for the VA Medical and Prosthetic Research program, the same as in FY 2006. The VA minor construction budget for FY 2007 is increased by $12 million to begin upgrading VA medical research facilities nationwide.

The House bill does not specify funding for Gulf War Veteran's Illness (GWVI) research. In the FY 2006 appropriation, Congress dedicated $15 million for GWVI research, indicating in accompanying report language that the appropriation was part of a 5-year commitment to GWVI research.

The House bill includes $25.412 billion for VA Medical Services, a $2.9 billion (12.7 percent) increase over FY 2006, but $100 million below the President's request. $2.8 billion of the Medical Services appropriation is dedicated to specialty mental health care, compared to the $2.2 billion dedicated for this purpose in FY 2006. VA Medical Administration is funded at $3.277 billion, a $419 million (14.7 percent) increase over FY 2006, and VA Medical Facilities receives $3.954 billion, a $296 million (9 percent) increase over FY 2006.

The House-passed bill does not contain the Administration's proposed enrollment fees and copays. The Senate has not yet scheduled consideration of the VA appropriations bill.

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

House Republican Letter Addresses Medicaid Documentation Requirements

Rep. Rick Renzi (R-Ariz.) is circulating a Medicaid sign-on letter among his House Republican colleagues. The letter to HHS Secretary Michael Leavitt expresses concern about the Medicaid documentation requirements established by Section 6036 of the Deficit Reduction Act [P.L. 109-171]. Section 6036, which is effective July 1, requires beneficiaries to provide specified "documentary evidence" of citizenship or nationality, such as a U.S. passport or Certificate of Naturalization.

The letter advises that the policy "could create enrollment barriers for millions of low-income citizens who otherwise meet all Medicaid eligibility requirements." It adds that the policy should "minimize any negative impact on Medicaid beneficiaries and the ability of states and healthcare providers to enroll patients in the program."

According to the letter, many Native Americans lack paper birth records, as do older Americans who were born at home. Citizens in emergency situations, Alzheimer's patients, and homeless individuals also could lack the appropriate documentation.

The AAMC May 12 sent a similar letter to Secretary Leavitt [see Washington Highlights, May 19]. The letter was also signed by the American Hospital Association, Catholic Health Association of the United States, Federation of American Hospitals, National Association of Children's Hospitals, National Association of Public Hospitals and Health Systems, Premier, and VHA Inc.

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

House Committee Approves Preparedness Changes

The House Energy and Commerce Committee May 24 approved legislation (H.R. 5438), which returns the National Disaster Medical System (NDMS) to the Department of Health and Human Services (HHS) from the Department of Homeland Security (DHS). NDMS was first moved from HHS when DHS was created in 2002. The "Public Health and Medical Emergency Coordination Act of 2006," sponsored by Committee Chairman Joe Barton (R-Texas) and Ranking Member John Dingell (D-Mich.), also designates HHS as responsible for coordinating the federal government's response to medical emergencies, including bioterrorist attacks.

The NDMS, currently housed within the Federal Emergency Management Agency, was first created under the Public Health Security and Bioterrorism Response Act of 2001 (P.L. 107-188). It is a collaborative effort among federal and state agencies and private health entities, including hospitals, to provide health services to victims of public health emergencies.

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

Senate Panel Approves Ryan White Reauthorization Bill

The Senate Health, Education, Labor and Pensions (HELP) Committee May 17 approved legislation (S. 2823) to reauthorize the Ryan White CARE Act (P.L. 101-381). Sponsored by HELP Committee Chairman Michael Enzi (R-Wyo.) and co-sponsored by Ranking Member Edward Kennedy (D-Mass.), the bill attempts to address changes in the AIDS epidemic since the act's last reauthorization in 2000.

Specifically, the bill includes a provision to include the number of HIV cases in addition to AIDS cases for funding formulas; requires that 75 percent of funds be spent on "core medical services;" and attempts to more evenly distribute funds between rural and urban areas, a contentious issue among lawmakers. The committee voted 19-1 in favor of the measure, with Sen. Hillary Clinton (D-N.Y.) voting against it on the grounds that New York will lose $20 million under the new formula.

Information:
Tannaz Rasouli, Senior Legislative Analyst
AAMC Government Relations
trasouli@aamc.org
(202) 828-0525

CMS Updates PPAC on Pay-for-Performance

The Centers for Medicare and Medicaid Services (CMS) May 22 updated the Practicing Physicians Advisory Council (PPAC) on its pay-for-performance metrics. Specifically, the staff outlined the analytic work that CMS is conducting to measure efficiency and resource use. In addition, CMS provided an update on the physician voluntary reporting program (PVRP), which encourages physicians to report voluntarily on quality measures through administrative claims data.

CMS staff also reported that they expected an initial release of the proposed rule for the 2007 physician fee schedule in May. The proposed rule will list the projected changes to the work component of the physician fee schedule as part of the 5-year review required by law. In addition, CMS will outline the proposed methodology to calculate the practice expense (PE) component of the fee schedule. Overall, the work component accounts for approximately half of the physician payment, PE accounts for about 45 percent, and professional liability accounts for the final 5 percent.

Other topics discussed include updates on Physicians Regulatory Issues Team (PRIT) activities, Medically Unbelievable Edits (MUEs), and disease management demonstrations.

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

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

HHS Seeks Information on Storage of Personal Information in Emergencies

The Department of Health and Human Services (HHS) May 23 published a request for information (RFI) about the availability or feasibility of private sector services that store personal informal in the event of an emergency, such as Hurricane Katrina. HHS is seeking a synthesis of ideas and does not intend this request to be part of any procurement process.

The RFI poses a series of questions related to: approach, finance, sustainability, and roles; function, capabilities, and performance; rights, rules, responsibilities, and enforcement; security and standards; and potential federal roles. Respondents are asked to differentiate between already existing capabilities and those which are planned or desirable in the future. Responses must be submitted by July 24.

Information:
Ivy Baer, Director & Regulatory Counsel
AAMC Health Care Affairs
ibaer@aamc.org
(202) 828-0490