Washington Highlights: June 2, 2006
Contents
Prior Issues
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Congress Examines Hospital Accreditation
Senate Committee on Finance Chair Charles Grassley (R-Iowa) sent
a May
18 letter to Dennis O'Leary, M.D., President of the Joint Commission
on Accreditation of Healthcare Organizations (JCAHO), asking the
commission to comply by June 8 with a lengthy request for documents
and written responses to questions regarding JCAHO's accreditation
process. The letter, co-signed by Sen. Max Baucus (D-Mont.), ranking
Democrat on the Finance Committee, and Rep. Peter Stark (D-Calif.),
ranking member on the House Ways and Means Subcommittee on Health,
warned that "it is our expectation that you will comply promptly
and completely with this request. Failing that, additional avenues
will be pursued."
The letter referenced a July 2004 Government Accountability Office
(GAO) investigation that found serious deficiencies in JCAHO's accreditation
process. Currently, GAO is conducting a second investigation relating
to possible conflicts of interest and other concerns at JCAHO and
its subsidiaries. The letter noted that "Federal law deems
hospitals that are accredited by the commission to be compliant
with Medicare requirements, and thus eligible to treat Medicare
patients and be reimbursed by Medicare for doing so. No other health
care accreditation program shares this unique statutory authority."
In addition to requesting information about the accreditation process,
the letter asked for detailed information about both JACHO and Joint
Commission Resources, Inc. (JCR), a consulting subsidiary of JCAHO.
The request includes the names of all current board members for
both JCAHO and JCR; the compensation for each between FY 2003 and
FY 2005; any luxury items owned by JCAHO; and the number and percentage
of JCR clients that are surveyed by JCAHO and subsequently receive
accreditation.
An accompanying press release indicates that Chairman Grassley,
Sen. Baucus, and Rep. Stark plan to introduce a revised version
of legislation they sponsored in 2004 (S.2698,
H.R.
4877), which would bring JCAHO's accreditation process under
the authority of the Centers for Medicare and Medicaid Services
(CMS). The new legislation will be based on CMS oversight of the
accreditation of healthcare facilities other than hospitals and
a number of factors including any new findings of the GAO.
Information:
Ivy Baer, Director & Regulatory Counsel
AAMC Health Care Affairs
ibaer@aamc.orc
(202) 828-0490
Stafford Interest Rates Set To Increase
The Department of the Treasury May 30 auctioned the last three-month
Treasury bill (91 day T-bill) of May, setting the index for most
outstanding Stafford loans in the academic year following July 1,
2006. Currently, variable Stafford loan interest rates are 4.70
percent during the in-school or grace periods and 5.30 percent during
repayment. The new 4.84 percent bond equivalent rate of the 91 day
T-bill will increase the interest rate for outstanding Stafford
loans, made on or after July 1, 1998, to 6.54 percent during in
school and 7.14 percent during repayment.
Under the current law, beginning July 1, 2006, new Stafford loans
will have a fixed 6.8 percent rate and borrowers will not be able
to consolidate outstanding Stafford loans during the in-school period
or grace periods.
The Department of Education issued a May 30 Dear
Colleague Letter (FP-06-09) that provides guidance for lenders
to help borrowers obtain the lowest interest rate on their consolidation
loans.
Information:
Matthew Shick, Senior Legislative Analyst
AAMC Government Relations
mshick@aamc.org
(202) 862-6116
Senate Passes Immigration Reform Bill
The Senate May 25 passed the "Comprehensive Immigration Reform
Act of 2006" (S.2611).
Disagreements over the illegal immigration prevention and "amnesty"
provisions have stalled the bill's approval since March. S. 2611
includes a provision that would eliminate the expiration of J-1
visa waiver programs, which allow physicians to waive their 2 year
home service requirement after they complete their residency training
in the U.S. on a J-1 visa. Participants in the program receive an
H-1B visa and are required to practice in underserved areas as determined
by the Department of Health and Human Services.
Further provisions exempt non-immigrant physicians who "have
been awarded medical specialty certification based on post-doctoral
training and experience in the United States" from the H-1B
visa cap. Similarly, physicians who "have been awarded medical
specialty certification based on post-doctoral training and experience
in the United States preceding their application for an immigrant
visa" are exempted from permanent immigrant caps.
A difficult conference is expected with the House-passed "Border
Protection, Antiterrorism, and Illegal Immigration Control Act of
2005" (H.R.4437).
This bill, approved Dec. 16, 2005, does not contain the J-1 waiver
programs permanency or physician cap exemption language.
Information:
Matthew Shick, Senior Legislative Analyst
AAMC Government Relations
mshick@aamc.org
(202) 862-6116
Commerce Dept. Withdraws Deemed Export Proposed
Rule
The U.S. Department of Commerce May
31 announced the withdrawal of the 2005 proposed rulemaking
on "deemed export controls" [see Washington
Highlights, April 1, 2005]. The proposed rule, which would
have markedly restricted access and heightened institutional reporting
requirements for managing "dual use" technologies, was
met with strong objection from the academic community. The department
May
22 announced the creation of a Deemed Export Advisory Committee
that will review and provide recommendations to the department on
deemed export policy.
Information:
Susan Ehringhaus, Sr. Director & Regulatory Counsel
AAMC Biomedical Health Sciences Research
sehringhaus@aamc.org
(202) 828-0543
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