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Washington Highlights: March 30, 2007

House, Senate Approve Budget Resolutions

The House and Senate each approved their respective FY 2008 budget resolutions. The House March 29 passed, 216-210, its plan (H.Con.Res. 99) [see Washington Highlights, March 23], with 12 Democrats voting against the measure. The measure sets a $1.1 trillion cap on discretionary spending and projects a $153 billion surplus in 2012 by observing strict pay-as-you-go budget rules. Alternatives proposed by Republicans, the Congressional Black Caucus, and progressive Democrats were all defeated.

The Senate March 23 passed its version (S.Con.Res.21) by a vote of 52 to 47 [see Washington Highlights, March 16]. The Senate also cleared by voice vote an amendment sponsored by Labor, Health and Human Services, and Education Appropriations Subcommittee Chair Tom Harkin (D-Iowa) and ranking member Arlen Specter (R-Pa.) to increase the amount provided for Function 550 discretionary health programs by $2.2 billion. The amendment specifies restoring National Institutes of Health funds to the FY 2005 inflation-adjusted level, an increase of $3.5 billion; increasing funds for the Centers for Disease Control and Prevention for facilities construction and revitalization; and restoring funds for the Title VII health professions programs to their FY 2005 levels. Unlike the House version, the Senate bill also was amended to spend its projected FY 2012 surplus on tax cut extensions and children's health care.

House Democrats hope to conference with the Senate by May 1.

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

House, Senate Pass FY 2007 Supplemental

The House March 23 (218-212) and Senate March 29 (51-47) passed their respective versions of the "U.S. Troop Readiness, Veterans' Health, and Iraq Accountability Act, 2007" (H.R. 1591). The Senate provides $123.2 billion for the emergency war spending measure, $1.5 billion greater than the House.

Both the House [see Washington Highlights, March 16] and Senate [see Washington Highlights, March 23] provide funding for domestic programs such as the State Children's Health Insurance Program (SCHIP), the Department of Veterans Affairs Medical and Prosthetic Research, and transfers from the National Institutes of Health for biodefense research programs.

In the Senate, a manager's amendment that was adopted by voice vote included language that would prevent the reorganization or relocation of the Armed Forces Institute of Pathology (AFIP) until the Secretary of Defense submits a plan and timetable for such action. The language directs the Secretary to submit the plan by Dec. 31, 2007, and to take into account the recommendations of an upcoming Government Accountability Office report that analyzes the impact of dismantling AFIP's various functions. Another amendment provides for a moratorium on certain Medicaid provisions (see related story). The House did not allow amendments to the committee-approved bill .

House Defense Appropriations Subcommittee Chair John P. Murtha (D-Pa.) said he hopes to have a conferenced version approved by both Chambers ready for the President by April 26. President Bush has vowed to veto the House bill because of binding language that would require withdrawal of troops from Iraq no later than the end of August 2008.

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

Senate Passes Medicaid Moratorium

The Senate March 29 approved legislation containing a 2 year moratorium of the Jan. 18 Medicaid Cost Limit/Unit of Government Proposed Rule. The amendment also delays for 2 years any proposal to restrict Medicaid funding for graduate medical education (GME). The provisions were passed as an amendment to the Senate's version of the "US Troop Readiness, Veterans' Health, and Iraq Accountability Act, 2007" (H.R. 1591) (see related story).

Sen. Richard Durbin (D-Ill.), who offered the amendment during the committee mark up of the bill on March 22 [see Washington Highlights, March 23], reiterated the need for its inclusion in the supplemental: "This is money that helps hospitals provide basic services to the uninsured and those with limited insurance."

Senate Finance Committee Ranking Minority Member Charles Grassley (R-Iowa) was prepared to offer an amendment to alter the Medicaid language, however Sen. Patty Murray (D-Wash.) objected. Referring to a letter from CMS Acting Administrator Leslie Norwalk, Grassley expressed concerns with the breadth of the amendment and that the Durbin language could "seriously limit the agency's ability to do the normal program oversight to ensure program integrity." Grassley also took issue that the subject matter had bypassed the Senate Finance Committee's consideration.

The bill must now be reconciled with the House version, which does not include the Medicaid moratorium language.

Information:
AAMC Government Relations

AAMC Endorses "Medical Education Affordability Act"

The AAMC March 29 endorsed the "Medical Education Affordability Act" (S.1066). The bill, introduced by Senator Christopher Dodd (D-Conn.) March 29 and co-sponsored by Senators John Kerry (D-Mass.), Richard Durbin (Dill), and Russ Feingold (D-Wis.), would allow physicians to defer repayment of their student loans while they complete their medical training. Currently, the Economic Hardship Deferment allows physicians that meet specific debt-to-income ratios to defer repayment of federal educational loans for up to three years. S. 1066 would extend this deferment to include the length of "post graduate medical or dental internship, residency, or fellowship programs."

In total, 22 medical and dental organizations joined AAMC as original endorsers of S.1066, including: American Academy of Dermatology Association; American Association of Colleges of Osteopathic Medicine; American Association of Neurological Surgeons; American College of Cardiology; American College of Physicians; American College of Surgeons; American Dental Education Association; American Geriatrics Society; American Medical Student Association; American Osteopathic Association; American Society for Investigative Pathology; American Society of Addiction Medicine; American Society of Plastic Surgeons; Association for Molecular Pathology; Association of Academic Health Centers; Association of Pathology Chairs; Congress of Neurological Surgeons; National Hispanic Medical Association; Society for Vascular Surgery; Society of Gynecologic Oncologists; Society of Interventional Radiology; and Society of Thoracic Surgeons.

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

Trauma, Stroke, Genetic-Nondiscrimination Bills Approved

The Senate March 29 passed by voice vote the "Trauma Care Systems and Development Act" (H.R. 727), after it was approved by the House March 27. The bill reauthorizes grants to states for enhancing their trauma care systems. The President is expected sign the measure into law.

The House March 27 also approved the "Stroke Treatment and Ongoing Prevention Act" (H.R. 477), which authorizes grants to educate health professionals on the diagnosis and treatment of stroke [see Washington Highlights, March 16]. Senators Thad Cochran (R-Miss.) And Edward Kennedy (D-Mass.) March 27 introduced a companion stroke bill (S. 999), with 7 other cosponsors.

The House Ways and Means Committee March 21 passed the Genetic Information Nondiscrimination Act (H.R. 493), followed by House Energy and Commerce Committee passage on March 23. The Ways and Mean Committee will reconcile the 3 different versions of the bill passed by these committees and the Education and Labor Committee, before it is sent to the floor.


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

Supreme Court Issues Decision on "Original Source" in Qui Tam Case

The Supreme Court March 27 issued a decision clarifying a law that allows for an individual, or "relator," with knowledge of past or present fraud committed against the US federal government to bring suit on its behalf under the False Claims Act (FCA). In December 2006, the Supreme Court heard arguments in an FCA case in which the AAMC submitted an amicus brief on behalf of Rockwell International Corporation, a government contractor. Although the case did not involve a health care organization, the issues being considered are of great import to any entity that could be the subject of FCA allegations.

The questions before the Supreme Court were jurisdictional; principally what are the requirements for a qui tam relator to be considered the "original source" of allegations, as required by the FCA. In the amicus brief, the AAMC argued that a "clear, consistent and strict 'original source' rule, applied in tandem with the [False Claims] Act's other gatekeeping mechanisms, gives courts and defendants a powerful tool to identify and ward off illegitimate qui tam strike suits like those sometimes aimed at amici's members. The relators who clear the False Claims Act's intentionally demanding gauntlet will have had their bona fides established, while less principled relators will be winnowed out."

The decision, written by Associate Justice Antonin Scalia, found that:

  • the relator must be the original source (i.e., have direct and independent knowledge) of the information on which his/her allegations; and
  • that publicly disclosed allegations do not meet the "original source" requirement.

In making this determination, the Supreme Court concluded that a court should consider the allegations in the original complaint, as amended.

Information:
Ivy Baer, Director & Regulatory Counsel
AAMC Health Care Affairs
ibaer@aamc.org
(202) 828-0490