AAMC Home   Tomorrow's Doctors Tomorrow's Cures
  Home  Government Affairs   Newsroom   Meetings   Publications Shopping Cart   Site Map    

Washington Highlights: August 31, 2007

AAMC Comments on CMS Clinical Research Proposal

The AAMC Aug. 15 submitted comments to the Centers for Medicare and Medicaid Services (CMS) on the proposed second reconsideration of the Clinical Research Policy. [see Washington Highlights, July 27] The AAMC urges that the agency not finalize the proposed national coverage decision, but instead approach coverage of clinical trials through a rulemaking that will allow for a longer comment period and a reasonable transition from the current rules to the new ones.

If CMS decides to finalize the current proposal, the AAMC requests (among other revisions) a reinstatement of the "deemed status" that previously was accorded to certain federally-funded or reviewed trials. In addition to these proposed changes, the AAMC comments on the standards for clinical research. The AAMC also voices concern about what will occur if a hospital or other provider bills CMS for a study that is later found not to meet CMS standards and suggests discussing the issue with the HHS Office of Inspector General.

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

AAMC Endorses Rule Change for "Multi-PIs"

The AAMC Aug. 15 endorsed a change to regulations proposed by the National Institutes of Health (NIH) on the definition of "principal investigator" for the agency's research grant awards. The new definition would allow for more than one "principal investigator" on some research project grants and similar awards, as appropriate for the scope and design of the project.

In its comment letter to NIH, the AAMC reiterated its position that recognition of "multi-PIs" could benefit interdisciplinary, multidisciplinary, and other collaborative research. The AAMC also noted that the language of the NIH's proposed rule reinforces the special prerogatives and responsibilities of PIs. The AAMC emphasized "the unique importance of the principal investigator in ensuring leadership and accountability, in respect to both the science and the administration of research projects, distinct from the many other vital roles played by other members of a research team." The Association added, "In the absence of such emphasis, 'principal' investigators could proliferate in ways that actually would be counterproductive and even injurious to the goals of strengthening collaborative research."

The NIH also proposed a change in rules that would allow the agency to make multiple awards from a single application. The AAMC did not endorse the latter change in rules, but requested more information on the rationale for the change and for discussion of the alternatives. The NIH published its notice of proposed rulemaking in the Federal Register on June 25.

Information:
Howard Dickler, Director
AAMC Biomedical Health Sciences Research
hdickler@aamc.org
(202) 828-0567

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

NIH Issues Policy for Sharing of Data from Genome-Wide Association Studies

The National Institutes of Health (NIH) Aug. 28 released its Policy for Sharing of Data Obtained in NIH Supported or Conducted Genome-Wide Association Studies. Such studies are expected to advance the health of the nation by identifying genetic factors that influence health and disease, improve the prediction of disease and outcomes, and ultimately lead to the realization of personalized medicine. AAMC previously provided comments regarding this policy to the NIH and is gratified that the final policy addressed these comments.

The protections that will maintain the privacy of individuals whose information and specimens are included have been strengthened and made explicit, and the legitimate interests of the investigators who submit data to the registry have been recognized by lengthening the period of exclusive publication rights to 12 months. Other important principles on access to data and best practices regarding disposition of intellectual property relating to genomic information also are affirmed in the document. An additional suggestion by AAMC to provide support for the efforts required of individual investigators and institutions to comply with this policy was not specifically addressed. However, future grant applications that will be subject to this policy may request such support.

Information:
Howard Dickler, Director
AAMC Biomedical Health Sciences Research
hdickler@aamc.org
(202) 828-0567

CMS "Clarifies" the Application of SCHIP "Crowd-Out Procedures"

In an Aug. 17 letter to state health officials, the Centers for Medicare and Medicaid Services (CMS) "clarify" that states seeking State Children's Health Insurance Program (SCHIP) expansions must adopt "reasonable procedures" to prevent the substitution of public coverage for private coverage ("crowd-out"). The clarification applies to any SCHIP plans or SCHIP-related 1115 demonstration waivers that extend eligibility beyond 250 percent of the Federal Poverty Level (FPL). CMS expects full state compliance within 1 year, "or CMS may pursue corrective action."

According to the letter, such states must adopt "five general crowd-out strategies:"

  • A minimum 1-year waiting period between private coverage disenrollment and SCHIP enrollment;
  • SCHIP cost-sharing is "in approximation to the cost of private coverage." SCHIP cost-sharing requirements must represent at least 1 percent of family income (unless the state has imposed a 5 percent family cap);
  • Monitor health insurance status upon application (including coverage provided by noncustodial parents);
  • Verify family health insurance status (including coverage related to noncustodial parents); and
  • Prevent employers from making coverage policies that favor a shift to public coverage.

States must also "make assurances" that:

  • At least 95 percent of eligible children under 200 percent FPL are enrolled in SCHIP or Medicaid;
  • The number of potentially eligible but privately covered children does not drop by more than 2 percent over 5 years; and
  • They are "current" with all SCHIP/Medicaid reporting requirements, and they generate monthly reports "relating to the crowd-out requirements."

In the letter, CMS states that they "would not expect any effect on current enrollees." CMS expects the "clarification" to strengthen SCHIP "by the focus on effective and efficient operation of the program for the core...targeted population."

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

CMS Issues Stark III Final Regulation

The Centers for Medicare and Medicaid Services (CMS) Aug. 27 issued the final phase (III) of the Medicare physician self-referral regulations, commonly referred to as "the Stark law."

The rule finalizes and responds to public comments regarding the Phase II interim final rule published in 2004. It contains some minor clarifications regarding the Academic Medical Center (AMC) exception. For example, to determine whether a hospital meets the requirement that a majority of physicians on the medical staff consists of faculty members, the affiliated hospital "must include or exclude all physicians holding the same class of privileges (e.g., physicians holding courtesy privileges)." CMS also clarifies that "where a physician is paid by more than one component of the academic medical center, each such payment arrangement must meet the requirement that it not take into account the volume or value of referrals or other business generated by the referring physician within the academic medical center."

The AAMC is reviewing the complete regulations, which will be published in the Federal Register on Sept. 5.

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

CBO Report Cites Health Care Costs' Role in Poor Fiscal Forecasts

In its August budget and economic update, the Congressional Budget Office (CBO) reported that the costs per beneficiary under Medicare and Medicaid have increased about 2.5 percentage points faster per year than the national gross domestic product (GDP) over the past four decades, and are a principle reason for CBO's pessimistic forecast. The report stated "Over the long term, the budget remains on an unsustainable path. Unless changes are made to current policies, growing demand for resources caused by rising health care costs and the nation's expanding elderly population will put increasing pressure on the budget." If current trends hold, the report predicted Medicare and Medicaid spending would rise from 4.6 percent of the GDP in 2007 to 5.9 percent of GDP in 2017 - an increase of nearly 30 percent in just 10 years.

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

Congressional Casualty List

Running for President
Rep. Duncan Hunter (R-Calif.), will not seek re-election

Running for Senate
Rep. Tom Allen (D-Maine) Rep. Mark Udall (D-Colo.)

Retiring
Rep. Dennis Hastert (R-Ill.)
Rep. Ray LaHood (R-Ill.)
Rep. Chip Pickering (R-Miss.)
Rep. Deborah Pryce (R-Ohio)
Rep. Rick Renzi (R-Ariz.)
Sen. Wayne Allard (R-Colo.)

Resigned
Rep. Marty Meehan (D-Mass.)

Died
Rep. Juanita Millender-McDonald (D-Calif.), succeeded by state Rep. Laura Richardson (D)
Rep. Charlie Norwood (R-Ga.), succeeded by Paul Broun, M.D. (R)
Sen. Craig Thomas (R-Wyo.), succeeded by John Barrasso, M.D. (R)