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Washington Highlights: July 7, 2006

Provider Groups Urge Congress to Address Medicare Payment Policies for Training in Non-Hospital Settings

The AAMC, along with 79 other hospital and physician groups, sent a June 27 letter to all Members of Congress requesting their support for the "Community and Rural Medical Residency Preservation Act" (S.2071, H.R.4403). The bipartisan bills are sponsored by Sen. Olympia Snow (R-Maine) and Reps. Kenny Hulshof (R-Mo.). The bills would clarify congressional intent regarding the costs hospitals must incur to count - for purposes of Medicare indirect medical education and direct graduate medical education payments - the time resident physicians train in non-hospital settings. Specifically, the bills would allow hospitals and non-hospital sites to determine what costs (in addition to the residents' stipends and benefits) the hospital would be required to pay [see Washington Highlights, Dec. 9, 2005].

The letter explains that current CMS policies effectively deny much of the time residents spend in non-hospital settings. Such policies, with very few exceptions, require that hospitals pay for physician supervisory time even when the physician is volunteering. The letter also states that the policy is having a "chilling effect" on the use of ambulatory sites in residency programs.

The new bills would allow for volunteer physician supervisors. The provider letter to Congress states that these bills establish "clear and concise guidelines on the use of ambulatory sites in teaching programs" which reflect "sound educational policy and a worthwhile public policy goal that Congress clearly mandated."

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

Hospital Group Letter Addresses New Medicaid Documentation Requirements

The AAMC, with seven other hospital groups, sent a June 28 letter to HHS Secretary Michael Leavitt, expressing concern about Medicaid's new citizenship verification equirements. The new requirements, established under Section 6036 of the "Deficit Reduction Act of 2005" (P.L. 109-171), became effective July 1, 2006.

The letter states that the new requirements will have a significant impact on the Medicaid enrollment process. It also identifies particular concerns related to CMS oversight of the regulations, an inadequate range of exempt populations, and the limited time allowed to produce necessary documents. In the letter, the hospital groups offer to work with the Secretary to achieve Medicaid reforms that are "paired with equal vigor to preserve the Medicaid safety net."

Also signing the letter were the American Hospital Association, Federation of American Hospitals, National Association of Public Hospitals and Health systems, NationalAssociation of Children's Hospitals, Catholic Health Association of the United States, Premier, and VHA Inc.

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

Senate Letter Opposes Proposed Medicaid Cuts

A bipartisan group of 44 Senators June 29 sent a letter to HHS Secretary Michael Leavitt, expressing concern about anticipated administrative changes that reduce Medicaid spending by $12.2 billion over 5 years. The changes were outlined in President Bush's FY 2007 budget proposal and would directly affect providers by limiting provider taxes and intergovernmental transfers. According to the letter, which was circulated by Sen. Gordon Smith (R-Ore.) and Sen. Max Baucus (D-Mont.), the Senators "do not believe it is appropriate for the Department...to make these changes."

The letter reminds the Secretary that Congress had rejected such proposals during debate over the "Deficit Reduction Act of 2005" (P.L. 109-171). It also explains that limiting such financing mechanisms would "undermine the quality of care" provided by safety net hospitals.

Stating that "proposed administrative changes that lower provider reimbursement rates are not the correct approach" to improving the Medicaid program, the letter encourages the Secretary to focus on "making Medicaid a smarter and better payer for health care services."

Earlier this year, the National Governor's Association June 27 and 82 House Republicans May 16 sent similar letters.

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

GAO, Grassley Call for Improved Medicaid Oversight

The Government Accountability Office (GAO) July 3 released a new report, entitled "Medicaid Financial Management," which examines several steps CMS has undertaken to improve the financial management of the Medicaid program. The report credits the agency for enhancing its ability to identify payment errors and improving its oversight of state funding practices.

However, the GAO criticizes CMS for neglecting to track whether these "prevention and mitigation steps" are "adequate and effective." It also faults the agency for not developing a strategic plan, not monitoring state activities to improve Medicaid oversight, and not using available data sets to improve the agency's claims analysis capabilities.

Additionally, the report recommends that CMS create new, permanent positions for "funding specialists" who would perform in-depth reviews of state Medicaid financing.

Senate Finance Committee Chair Charles Grassley (R-Iowa) June 30 issued a press release, advising CMS to "take the GAO's recommendations to heart." According to Chairman Grassley's statement, the GAO will continue to include the Medicaid program among its "high-risk series"- a compilation of federal programs most vulnerable to fraud, abuse, and mismanagement. In its 2005 high-risk series report, GAO found that inadequate fiscal oversight of the Medicaid program had "led to increased and unnecessary federal spending."

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

VA Announces Blue Ribbon Panel on Academic Affiliations

In a July 3 Federal Register notice, the Department of Veterans Affairs (VA) announced the establishment of a Blue Ribbon Panel on VA-Medical School Affiliations. According to the notice, the Panel will "advise the Secretary [of Veterans Affairs] and the Under Secretary for Health on a comprehensive philosophical framework to enhance VA's partnerships with medical schools and affiliated institutions… in light of changes in medical education, research priorities, and the health care needs of veterans."

Members of the panel will include VA and non-VA personnel appointed by the Secretary in the coming months. The panel's deliberation is expected to last approximately 18 months.

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

AAMC Comments on NCI Biorepository Guidelines

The AAMC June 29 sent a comment letter in response to an April 28 Federal Register notice regarding the National Cancer Institute (NCI) First-Generation Guidelines for NCI-Supported Biorepositories. Despite a few concerns, the AAMC believes that the guidelines have the potential to facilitate integration, resource sharing, and team science while setting high standards for biorepositories.

The comment letter commended NCI's effort to overcome the heterogeneity that exists across biorepositories, as biospecimens must meet uniform standards of the highest quality to attain meaningful data interpretation. The AAMC also applauded NCI's plan to iteratively revise the guidelines, require biorepository personnel to disclose financial conflicts of interest, and provide a sample informed consent that not only protects research participants, but also facilitates a wide-range of future research use.

The AAMC voiced concern that, although the guidelines are suitable for large-scale biorepositories, they impose administrative, regulatory, and financial burdens too great for smaller biorepositories to bear. In the letter, the AAMC suggests NCI pilot the guidelines with large-scale biorepositories, develop best practices, and then select specific practices that are applicable for smaller biorepositories.

A second concern relates to particular language that is more suggestive of regulation than guidance. This concern could be remedied by removing regulatory language in adherence with the Office of Management and Budget's "Good Guidance Practices."

Information:
Kim Wittenberg, Clinical Research Associate
AAMC Division of Biomedical and Health Research
kwittenberg@aamc.org
(202) 862-6134