Washington Highlights: December
22, 2006
Contents
Prior Issues
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President Signs Tax Relief and Health Act
President Bush Dec. 20 signed the "Tax Relief and Health Act"
(H.R.
6111), which overall will increase Medicare and Medicaid spending
by $4.8 billion and $200 million over 10 years (2007-2016), respectively
[see Washington Highlights,
Dec. 15]. Of particular importance to medical schools and teaching
hospitals, the bill:
- freezes CY 2007 physician payments at 2006 levels;
- extends for one year the work-related geographic practice cost
index floor;
- creates quality reporting systems for physicians and hospital
outpatient departments;
- reduces allowable Medicaid provider tax rates;
- promotes Medicare program integrity efforts; and
- extends for one year research and development tax credits
and individual tax deductions for higher education.
Information:
Lynne Davis Boyle, Assistant Vice President
AAMC Government Relations
ldavisboyle@aamc.org
(202) 828-0526
President Bush Adjusts Federal Salary Levels
President Bush Dec. 21 issued an executive
order setting 2007 salary levels for federal employees. The
Executive Level I salary
level (PDF, 1 page) has been set at $186,600, a $3,100 increase (1.7 percent)
over the 2006 level. The current cap on extramural salaries
for National Institutes of Health (NIH), Agency for Healthcare Research
and Quality, and Substance Abuse and Mental Health Services Administration
grants are tied to this salary level. The House FY 2007 Labor-HHS-Education
appropriations bill (H.R.
5647; H. Rept. 109-515) had adopted the Administration's FY
2007 budget request to reduce the salary cap to Executive Level
II ($165,200). This legislation failed to pass in the 109th Congress.
Information:
Tony Mazzaschi, Interin Chief Scientific Officer, Senior Director
AAMC Scientific Affairs
tmazzaschi@aamc.org
(202) 828-0059
White House Examines Pandemic Flu Preparedness
The White House Dec. 18 released a report
assessing the federal government's progress with respect to pandemic
flu preparedness activities listed in the President's May 2006 National
Strategy for Pandemic Influenza Implementation Plan. The report
finds that 92 percent of action items due within six months have
been completed, with 8 percent "in progress." The due
dates for twelve items related to community containment are postponed
to Feb. 1, 2007, for additional analysis, and were not included
in the report. Activities listed as complete included:
- emergency response training led by the Department of Homeland
Security (DHS) and in collaboration with the Department of Health
and Human Services (HHS) and other agencies;
- a community planning guide to assist medical professionals,
community planners and other entities at institutional, state
and federal levels respond to a mass casualty event;
- and a pandemic guidance document for the local Medical Reserve
Corps.
Information:
Tannaz Rasouli, Senior Legislative Analyst
AAMC Government Relations
trasouli@aamc.org
(202) 828-0525
GAO Identifies Barriers to Drug R&D
The Government Accountability Office (GAO) Nov. 17 released a report
(PDF, 52 pages) on factors that hamper the development of new pharmaceuticals in
the United States. The study was requested by Rep. Henry Waxman
(D-Calif.), Sen. Richard Durbin (D-Ill.), and incoming Senate Health,
Education, Labor, and Pensions Committee Chair Edward Kennedy (D-Mass.).
The GAO report notes that while pharmaceutical industry spending
- adjusted for inflation - increased from $16 billion to nearly
$40 billion (147 percent) from 1993 to 2004, the number of new drug
applications annually submitted to the Food and Drug Administration
(FDA) increased by only 38 percent. The increase was much smaller
(7 percent) for "new molecular entities" that represent
especially novel advances. Among those factors limiting the pipeline
for new drugs are technical and regulatory difficulties in translating
laboratory findings into human applications, the economic and business
climate in which many industry decisions are made, and "certain
intellectual property protections." Among sources cited by
the GAO in its analysis is a report (PDF, 45 pages)
jointly produced by the AAMC and FDA in 2005 that examined the critical
interface between academic institutions and industry as related
to drug discovery.
Information:
Stephen Heinig, Lead Science Policy Analyst
AAMC Biomedical Health Sciences Research
sheinig@aamc.org
(202) 828-0488
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