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Washington Highlights: January 19, 2007

AAMC Urges Increased Health Professions Education Funding

The AAMC signed two Jan. 12 letters urging Congressional leadership to provide more funding for health and education programs in the final appropriations for FY 2007. One letter, organized by the Coalition for Health Funding, requests $7 billion over the President's FY 2007 budget request for health and education programs. Democrats and moderate Republicans in the 109th Congress pushed for this amount in efforts led by Senators Arlen Specter (R-Pa.) and Tom Harkin (D-Iowa) and Rep. Mike Castle (R-Del.). According to the letter, the $7 billion would allow public health programs under the Labor-HHS-Education Appropriations bill to be funded at FY 2005 levels.

A second letter organized by the Health Professions and Nursing Education Coalition (HPNEC) urges House and Senate leadership to provide $155 million over FY 2006 levels for Title VII health professions programs, to return the programs to FY 2005 funding levels. The letter highlights the 51.5 percent cut to the Title VII programs in FY 2006, including the elimination or drastic reduction of funding for geriatric training, rural training, primary care training, and the Health Careers Opportunity Program and the Centers of Excellence diversity programs. Signers emphasize that with the additional $155 million, "Congress can revive the Title VII programs and avoid the far more costly expense of losing these unique programs that help resolve systemic workforce shortages and deliver care to our nation's most vulnerable communities."

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

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

Proposed Rule Addresses Medicaid Financing Policies

The Centers for Medicare and Medicaid Services (CMS) Jan. 18 published a proposed rule (72 Federal Register 2236) to "clarify" Medicaid statute regarding intergovernmental transfers (IGTs), certified public expenditures (CPEs), and reimbursement for "governmentally operated providers."

Under the proposed rule, state reimbursement to government-operated providers could not exceed costs. The proposed rule (estimated to cut Medicaid provider payments by $3.8 billion over five years) would also narrow the types of entities that may be "involved in the financing of the non-Federal share of Medicaid payments." Additionally under the proposed rule, states would have to assure the "appropriate documentation" of any CPEs used to fund the non-federal share of Medicaid expenditures. A new regulation in the proposed rule "explicitly" requires that Medicaid providers "receive and retain the total computable amount of their Medicaid payments."

President Bush had proposed similar "administrative proposals" in his FY 2007 budget proposal. AAMC President Darrell Kirch, M.D., American Hospital Association Executive Vice President Rick Pollack, and National Association of Public Hospitals and Health Systems President Larry Gage co-signed a Dec. 4 letter to current and incoming congressional leaders expressing "concern with the administration's plan to cut the Medicaid program through the regulatory process."

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

Genetics Nondiscrimination Bill Reintroduced

Reps. Louise Slaughter (D-N.Y.), Judy Biggert (R-Ill.), Anna Eshoo (D-Calif.), and Greg Walden (R-Ore.) Jan. 16 introduced the Genetic Information Non Discrimination Act (H.R. 493). The legislation, which has 143 sponsors, is identical to the bill passed unanimously by the Senate in February 2005. The same bill also was introduced in the House in the 109th Congress, but was held up in committee. In his remarks at a NIH Roundtable on Advances in Cancer Prevention, President Bush Jan. 17 urged the passage of legislation that makes genetic discrimination illegal. He stated, "if a person is willing to share his or her genetic information, it is important that that information not be exploited in improper ways -- and Congress can pass good legislation to prevent that from happening. In other words, we want medical research to go forward without an individual fearing of personal discrimination."

H.R. 493 seeks to prohibit discrimination on the basis of genetic information with respect to health insurance and employment. The bill also prevents employers and insurers from requiring applicants to submit to genetic tests, requires the strict use and disclosure requirements of genetic test information, and imposes penalties against employers and insurers who violate these provisions.

Senate Health, Education, Labor, and Pensions Committee Chair Edward Kennedy (D-Mass.) announced Jan. 18 that his committee would vote Jan. 24 on genetics discrimination legislation drafted by Senator Olympia Snowe (R-Maine). The Senate has passed similar bills in 2003 and 2005 on unanimous votes.

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

Bush Signs NIH Reauthorization

President Bush Jan. 15 signed the National Institutes of Health Reform Act of 2006 (H.R. 6164, P.L. 109-687). Congress approved the bill in the final hours of the 109th Congress. The bill authorizes appropriations for NIH through FY 2009, authorizes the restructuring of NIH's Institutes and Centers under certain conditions, creates a "Common Fund" to promote trans-NIH research, and redistributes funds for the State Children's Health Insurance Program (SCHIP) that were unspent in FY 2004 and FY 2005 to alleviate anticipated SCHIP funding shortages.

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

NRC Recommends Withdrawing OMB Risk Assessment

The National Research Council (NRC) Jan. 11 strongly recommended that a proposed bulletin governing federal agency risk assessments be withdrawn. The draft bulletin was released in January 2006 by the Office of Management and Budget and would have set standards and requirements for Federal agencies performing such assessments, usually as a prelude to regulation or other decision making. A press release and summary of the NRC report described the technical standards in OMB's proposed bulletin as "fundamentally flawed," stating that the agency was attempting to promote standards "beyond what previous reports have recommended and beyond the current state of the science." The committee also noted that OMB's definition of risk assessment is too broad and "in conflict with long-established concepts and practices."

In its comments on the bulletin last March, the AAMC cautioned that the standards, as proposed and without qualification, could interfere with critical decision making in the Public Health Service, such as a determination by a data safety monitoring board to intercede in a clinical trial.

In place of the proposed bulletin, the NRC recommends that the OMB outline goals and general principles to guide federal agencies in developing their own risk assessment guidelines and procedures. Agencies should be encouraged to collaborate in respective areas where risk assessments may overlap. The risk assessment bulletin and the request for the NRC review were issued by the OMB's Office for Information and Regulatory Affairs (OIRA), which in recent years has established sweeping guidance on the quality of information disseminated by Federal Agencies or used in rulemaking and policy. Potentially complicating a final decision about the bulletin, OIRA remains without a confirmed director. President Bush's nominee for that position, Susan Dudley, is awaiting confirmation by the Senate, but her nomination has been vigorously opposed by environmental activists. The President Jan. 10 appointed Dudley to be a Senior Advisor in the office, permitting her to begin work at OMB pending confirmation.

Information:
Stephen Heinig, Lead Science Policy Analyst
AAMC Biomedical Health Sciences Research
sheinig@aamc.org
(202) 828-0488