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Washington Highlights: February 23, 2007

Senators Introduce Legislation to Increase Medicare Resident Caps

Senate Majority Leader Harry Reid (D-Nev.) and Senators Bill Nelson (D-Fla.) and Joe Biden (D-Del.) Feb. 14 introduced legislation (S. 588) that would increase the number of residency positions for which Medicare payments will be made to teaching hospitals in states with a shortage of resident physicians.

Entitled the "Resident Physician Shortage Reduction Act," S. 588 would allow teaching hospitals in states that have resident physician to 100,000 population ratios below the national median to be eligible to increase their resident caps, pending an allocation method determined by the Secretary of Health and Human Services. According to the bill's formula, teaching hospitals in 24 states would be eligible to receive additional resident cap slots.

The Secretary is required to take into account whether the hospital will be able to fill the positions over a 3-year period, as well as whether the filled positions will be in primary care, preventive medicine, or geriatrics. The total number of additional cap slots granted to teaching hospitals in each eligible state could not exceed 25 percent of the number of residents needed to increase that state up to the national median. Overall, approximately 1,200 additional cap slots would be added to the national resident limit. Increases in the number of positions eligible for federal funding would be phased in over a 5-year period.

In his introductory statement, Senator Nelson stated, "We believe this legislation is a critical first step towards ensuring an adequate supply of physicians in our health care system." A companion bill is expected to be introduced in the House shortly.

Information:
AAMC Government Relations

Bipartisan Senate Letter Urges Halt to Proposed Rule

A bipartisan group of 43 senators signed a Feb. 15 letter to Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Charles Grassley (R-Iowa) expressing "serious concern" about a Jan.18 proposed rule that would "clarify" the Medicaid statute regarding intergovernmental transfers (IGTs), certified public expenditures (CPEs), and reimbursement for governmentally operated providers [see Washington Highlights, Jan. 19]. The proposed rule would cut an estimated $3.87 billion from the Medicaid program over 5 years.

Circulated by Senators Richard Durbin (D-Ill.) and Elizabeth Dole (R-N.C.), the letter urges Senators Baucus and Grassley to "work with us to...prevent CMS from moving forward with the implementation of this rule" via "an appropriate legislative vehicle." The letter also criticizes the Administration for making "major policy changes" to the Medicaid program "while disregarding congressional input." Among the 43 signatures on the letter are 7 Finance Committee Democrats, as well as 13 Republicans. A similar letter was circulated in the House of Representatives and is expected to be finalized soon.

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

House, Senate Letters Request Title VII Program Extension

Letters sent Feb. 16 from Members of Congress to Secretary of Health and Human Services (HHS) Mike Leavitt and Health Resources and Services Administration chief Betty Duke requested that HHS extend by 1 year the no-cost extensions granted to the Title VII-supported Centers of Excellence (COE) and Health Careers Opportunity Program (HCOP). The programs' funding was eliminated in the FY 2006 budget and was not restored in FY 2007. The House letter has 52 signers, while the Senate letter has 19.

The letters, organized by Rep. Joseph Crowley (R-N.Y.) and Senator Richard Durbin (D-Ill.), state that one benefit of extending the no-cost extension for COEs and HCOPs is eliminating "the need to resubmit applications should funding become available for the programs in the future." Additionally, retaining grantee status allows the programs "to leverage additional sources of federal, state and institutional funding," specifically, COEs are able to apply for the endowment program administered by the National Institutes of Health's National Center on Minority Health and Health Disparities.

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

Senators Introduce Bill to Freeze Rehab Rule

Senators Ben Nelson (D-Neb.), Jim Bunning (R-Ky.), Debbie Stabenow (D-Mich.), Olympia Snowe (R-Maine), John Kerry (D-Mass.), Susan Collins (R-Maine), Jack Reed (D-R.I.), Hillary Clinton (D-N.Y.), and Robert Menendez (D-N.J.), Feb. 12 introduced the "Preserving Patient Access to Inpatient Rehabilitation Hospitals Act of 2007" (S. 543).

According to Senator Nelson's introductory statement, the bill would "make changes to a rule issued by the Centers for Medicare and Medicaid Services that has restricted the ability of rehabilitation hospitals to provide critical care." S. 543 would permanently "lock in" the current 60 percent compliance threshold required of inpatient rehabilitation facilities' (IRF) patient populations.

The regulation, commonly known as the "75 percent rule," will require at least 75 percent of an IRF's patient population to have 1 of 13 designated medical conditions for which intensive inpatient rehabilitation services are medically necessary. The current 60 percent threshold is scheduled to increase to 65 percent on July 1, 2007, and to 75 percent on July 1, 2008.

A companion bill sponsored by Reps. John Tanner (D-Tenn.), Nita Lowey (D-N.Y.), Kenny Hulshof (R-Mo.), and Frank LoBiondo (R-N.J.) will be introduced in the House shortly.

Information:
AAMC Government Relations

AAMC Supports FAFSA Drug Question Elimination

The AAMC Feb. 21 signed a letter with 170 organizations under the Coalition for Higher Education Act Reform, urging Members of Congress to co-sponsor and pass the soon-to-be-introduced Removing Impediments to Students' Education (RISE) Act, sponsored by Rep. Barney Frank (D-Mass.). The bill would reinstate aid to aspiring students by removing the confusing drug conviction question from the Free Application for Federal Student Aid (FAFSA).

The letter cites a Advisory Committee on Student Financial Assistance report that called the question "irrelevant" to determining eligibility and stated the "questions add complexity to the form and can deter some students from applying for financial aid."

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