Washington Highlights: July 13,
2007
Contents
Prior Issues
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House Panel Approves HHS Spending Bill
The House Appropriations
Committee July 11 approved its FY 2008 Labor-HHS-Education spending
bill. The bill
provides $151.5 billion for FY 2008, an increase of $6.9 billion
(4.8 percent) above the current year's level. In general, the committee
endorsed the funding levels approved by the Labor-HHS-Education
Subcommittee June 7 [see Washington
Highlights, June 8].
For the National Institutes of Health (NIH), the bill includes
$29.650 billion, an increase of $750 million (2.6 percent) above
the current year's funding level and $1.029 billion (3.6 percent)
above the President's request. However, the bill also increases
the amount of the transfer from NIH to the Global HIV/AIDS fund
from the $99 million in FY 2007 to $300 million in FY 2008, which
means the net increase in the NIH budget is $549 million (1.9 percent)
over FY 2007. The bill retains the cap on extramural salaries at
Executive Level I ($186,600 in 2007).
The bill provides $228.3 million for Title VII health professions
programs, a $43.6 million (23.6 percent) increase over FY 2007.
The Title VII Centers of Excellence and Health Careers Opportunity
Programs each receive $28.4 million, for a $16.6 million (139.3
percent) increase and $24.5 million (618.2 percent) increase, respectively.
The primary care medicine and dentistry programs are level funded
at $48.9 million, while the AHECs receive a $2.5 million (8.9 percent)
increase over the current funding level.
The bill also includes $131.5 million for the National Health Service
Corps (NHSC), a $5.8 million (4.6 percent) increase over FY 2007.
It provides $329.6 million for the Agency for Healthcare Research
and Quality, which is a $10.6 million (3.3 percent) increase above
FY 2007. The Centers for Disease Control and Prevention receives
$6.449 billion, an increase of $246 million (4 percent) over FY
2007.
The bill is scheduled to go to the House floor July 17. The Senate
Appropriations Committee approved its FY 2008 Labor-HHS bill (S.
1710, S. Rpt. 110-107) on June 21 [see Washington
Highlights, June 22.]
Information:
Dave Moore, Senior Director
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525
Tannaz Rasouli, Senior Legislative Analyst
AAMC Government Relations
trasouli@aamc.org
(202) 828-0525
Matthew Shick, Senior Legislative Analyst
AAMC Government Relations
mshick@aamc.org
(202) 862-6116
AAMC Comments on HEA Reauthorization
The AAMC July 11 sent a comment letter
to the chairs and ranking members of the House and Senate education
committees regarding the Higher Education Act (HEA) reauthorization.
The letter addresses a number of issues important to medical schools
and students, including expanding the economic hardship deferment,
increasing Stafford loan limits, student loan oversight, and institutional
accreditation.
Specifically, the AAMC recommends the final HEA reauthorization
package include the following:
- The House language to remove the three-year limit on the Economic
Hardship Deferment;
- Language directing Secretary of Education to define the health
professions students aggregate combined Stafford loan limit
in regulation and increase the limit to account for 12 month
educational programs and recent increases in annual Stafford
loan limits;
- The Senate student loan oversight language with the addition
of the House proposed private loan notification requirement;
and
- Report language to exempt (in the interest of public health)
medical programs and institutions from proposed "mission"-related
accreditation standards.
The House July 11 passed (273-149) the "College Cost Reduction
Act of 2007" (H.R.
2669), which is the second piece of its HEA reauthorization
package [see Washington
Highlights,
June 15]. In a July 10 Statement
of Administrative Policy, the President threatened to veto H.R.
2669, because "it fails to target aid to the neediest students
currently in college and creates new mandatory Federal programs
and policies that are poorly designed and would have significant
long-term costs to the taxpayer."
The Senate hopes to consider its HEA reauthorization package before
the end of July.
Information:
Matthew Shick, Senior Legislative Analyst
AAMC Government Relations
mshick@aamc.org
(202) 862-6116
Finance Committee Gears Up for SCHIP Reauthorization
Senate Finance Committee members Charles Grassley (R-Iowa), Orrin
Hatch (R-Utah), and Pat Roberts (R-Kan.) wrote President Bush and
Secretary of Health and Human Services Michael Leavitt requesting
that they ensure "the Department refrains from granting or
extending waivers for adult coverage" under the State Children's
Health Insurance Plan (SCHIP). The senators believe that Congress
should exclude the adult populations from SCHIP reauthorization
and return the program "to its focus on low-income children."
The July 11 letter
expresses concern that some SCHIP programs cover more adults than
children. Such policies, the Senators believe, "should not
have been approved by HHS from the beginning." According to
the Senators, "some of these very states" cover adults,
despite having high rates of uninsured children. The letter further
criticizes these states for expecting Congress "to bail them
out of funding shortfalls" related to adult coverage.
The letter was sent one day after Senate Finance Committee Chair
Max Baucus (D-Mont.) announced
that his colleagues "are coming together" on a reauthorization
agreement. Tentatively scheduled for a July 17 mark-up, the legislation
reportedly will reauthorize SCHIP at $35 billion over 5 years. According
to a statement from Finance Committee member Gordon Smith (R-Ore.),
the amount would cover about 2 million additional children. A 61-cent
increase in federal tobacco taxes reportedly will offset the bill's
cost. In his FY 2008 budget proposal, President Bush assumed a $4.8
billion increase in SCHIP funding over 5 years. Congress' final
FY 2008 budget agreement established a non-binding, budget neutral
SCHIP reserve fund of up to $50 billion over 5 years.
Information:
Christiane Mitchell, Senior Legislative Analyst
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526
CMS Issues Changes to Clinical Trial Policy
The Centers for Medicare and Medicaid Services (CMS) July 9 issued
a memo
outlining changes to its Clinical Trial Policy (CTP). The memo clarifies
that Medicare will cover items or services under investigation if
they would be covered outside of the clinical research trial. AAMC
requested in a June 27 letter
that CMS clarify this issue [see Washington
Highlights, July 6, 2007].
The memo also adds Coverage with Evidence Development (CED) to the
CTP. This will allow Medicare coverage for items and services in
clinical research trials for which there is some evidence of significant
medical benefit, but for which there is insufficient evidence to
support a "reasonable and necessary" determination.
CMS also states that it will issue a new proposed national coverage
determination "so that providers, practitioners, and suppliers
can be assured of the circumstances in which Medicare payment will
be available." CMS states that it "shortly" will
propose changes to the regulations that pertain to clinical trials
and Medicare payment and will implement changes to claims processing
instructions. No dates have been provided for when these items will
be published.
Information:
Ivy Baer, Director & Regulatory Counsel
AAMC Health Care Affairs
ibaer@aamc.org
(202) 828-0490
House Approves FDA Reauthorization Bill
The House July 11 approved drug safety legislation (H.R.
2900) under suspension of the rules. The legislation renews
the Food and Drug Administration's (FDA) authority to collect fees
from drug companies and device manufacturers for product review,
approval, and subsequent safety monitoring. The current authority
expires Sept. 30. The measure also includes a series of drug safety
regulations and establishes a new online drug and device clinical
trials registry and separate results database.
The bill does not include controversial language addressing biogeneric
drugs. The Senate, which passed its own FDA reauthorization bill
(S.
1082) on May 9 [see Washington
Highlights, May 11], plans
to include in conference a biogenerics provision (S.
1695) approved June 27 by the Senate Committee on Health, Education,
Labor, and Pensions. Conference negotiations are expected to occur
prior to the August recess to avoid layoffs at FDA.
The House approved H.R.
2900, 403-16, far exceeding the two-thirds majority required
for passage. The House Committee on Energy and Commerce had approved
the bill on June 21 [see Washington
Highlights, June 22].
Information:
Tannaz Rasouli, Senior Legislative Analyst
AAMC Government Relations
trasouli@aamc.org
(202) 828-0525
House Panel Approves NSF Funding Bill
The House Appropriations Committee July 12 approved the FY 2008
Commerce-Justice-Science spending bill, which funds the National
Science Foundation (NSF). The bill provides $6.509 billion for the
NSF, an increase of $593.4 million (10 percent) over FY 2007. Within
that figure, Research and Related Activities receives $5.140 billion,
an increase of $376.3 million (7.9 percent) over FY 2007. The Commerce,
Justice, and Science Appropriations Subcommittee approved the bill
June 11 [see Washington Highlights,
June 15]. The Senate Appropriations Committee approved its version
of the bill June 28, providing $6.553 billion for NSF [see Washington
Highlights, June 29].
Information:
Tannaz Rasouli, Senior Legislative Analyst
AAMC Government Relations
trasouli@aamc.org
(202) 828-0525
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