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

Washington Highlights: September 21, 2007

Legislation Seeks to Extend Moratorium on Medicaid Rules

Reps. Eliot Engel (D-N.Y.) and Sue Myrick (R-N.C.) Sept. 14 introduced legislation (H.R. 3533) to extend by one year the moratorium related to the May 29 Medicaid final rule on cost limits/units of government and the May 23 Medicaid proposed rule on graduate medical education payments [see Washington Highlights, May 25]. Without congressional action, the current moratorium expires May 27, 2008.

According to H.R. 3533 ("The Public and Teaching Hospital Preservation Act"), publication of the May 29 final rule and May 23 proposed rule "was not anticipated by Congress and undermines the intent of the moratorium passed by Congress." It adds that "extension of the moratorium is necessary to effectuate Congressional intent." The legislation also states that implementation of the rule on graduate medical education payments "would force billions of dollars in payment reductions to teaching hospitals, thus hampering the ability ... to provide essential services including the education of the next generation of medical professionals despite a shortage of medical professionals."

As of Sept. 20, H.R. 3533 had 20 additional bipartisan cosponsors: Reps. Tim Bishop (D-N.Y.), Mary Bono (R-Calif.), Lois Capps (D-Calif.), Stephen Cohen (D-Tenn.), John Conyers (D-Mich.), Joe Crowley (D-N.Y.), Gene Green (D-Texas), John Hall (D-N.Y.), Alcee Hastings (D-Fla.), Robin Hayes (R-N.C.), Maurice Hinchey (D-N.Y.), Nita Lowey (D-N.Y.), Carolyn Maloney (D-N.Y.), Jim Matheson (D-Utah), James McGovern (D-Mass.), Gerald McNerney (D-Calif.), Michael McNulty (D-N.Y.), Jerrold Nadler (D-N.Y.), Ileana Ros-Lehtinen (R-Fla.), and Edolphus Towns (D-N.Y.).

On Sept. 11, Rep. Henry Waxman (D-Calif.) and Sen. Jeff Bingaman (D-N.M.) introduced joint resolutions (H.J. Res. 49/S.J. Res. 18) expressing "congressional disapproval" of the May 29 Medicaid final rule on cost limits/units of government. As of Sept. 20, the Senate measure had 22 cosponsors: Sens. Evan Bayh (D-Ind.), Sherrod Brown (D-Ohio), Robert Byrd (D-W.Va.), Maria Cantwell (D-Wash.), Bob Casey (D-Penn.), Hillary Clinton (D-N.Y.), Thad Cochran (R-Miss.), Russ Feingold (D-Wis.), Dianne Feinstein (D-Calif.), John Kerry (D-Mass.), Mary Landrieu (D-La.), Blanche Lincoln (D-Ark.), Patty Murray (D-Wash.), Bill Nelson (D-Fla.), Barack Obama (D-Ill.), Mark Pryor (D-Ark.), John Rockefeller (D-W.Va.), Ken Salazar (D-Colo.), Bernie Sanders (I-Vt.), Debbie Stabenow (D-Mich.), Jon Tester (D-Mont.), and Sheldon Whitehouse (D-R.I.). H.J. Res. 49 had no cosponsors.

Information:
Christiane Mitchell, Senior Legislative Analyst
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526

SCHIP Veto Threat Continues While Republicans Offer Legislation to Extend Current Funding Levels

President Bush Sept. 20 called on Congress to pass a "clean, temporary extension of the current [State Children's Health Insurance Program (SCHIP)] that I can sign" before the program expires on Sept. 30. His remarks came as House and Senate Democrats moved closer to an SCHIP reauthorization agreement reportedly based on the Senate-passed H.R. 976 [see Washington Highlights, Aug. 3]. The President has repeatedly promised to veto the Senate SCHIP package because it increases taxes and encourages families to choose "government run health care" over private coverage.

President Bush criticized Congress for waiting until SCHIP "is just about to expire" to "score political points in Washington." Senate Finance Committee Chair Max Baucus (D-Mont.) responded with a press release urging the President to "drop his threat to block this help for kids" and work with Congress "for a real renewal" of the program. The Baucus press release reported that the House and Senate were "coming together on a real renewal and improvement" of SCHIP before it expires. Similarly, a press statement by House Energy and Commerce Health Subcommittee Chair Frank Pallone (D-N.J.) reported that Congress would pass final legislation to reauthorize the program before Sept. 30. Ranking Member Charles Grassley (R-Iowa) also was "disappointed" by the President's reaction and advised that a bipartisan compromise is necessary.

House Republican leaders Sept. 19 reiterated support for a Presidential veto. Seeking to assure that both parties have "ample time" to act in a "more responsible fashion," the Republicans also have introduced legislation (H.R. 3584) to extend current SCHIP authorization levels for 18 months. In a Sept. 19 letter to Speaker of the House Nancy Pelosi (D-Calif.), House Minority Leader John Boehner (R-Ohio) and Minority Whip Roy Blunt (R-Mo.) urged her to schedule a vote on the bill "so partisan politics does not push this program into further peril as September 30 approaches." However, also on Sept. 19, a group of 17 House Republicans sent a letter to Speaker Pelosi stating that they "would be supportive of consideration of the Senate SCHIP bill."

Information:
Christiane Mitchell, Senior Legislative Analyst
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526

Opponents Seek Nullification of New SCHIP Mandates

Sens. Ted Kennedy (D-Mass.), Gordon Smith (R-Ore.), John Rockefeller (D-W.Va.), Olympia Snowe (R.-Maine), Robert Menendez (D-N.J.), and John Kerry (D-Mass.) Sept. 12 introduced bipartisan legislation (S. 2049) to nullify the Aug. 17 requirements regarding State Children's Health Insurance Program (SCHIP) expansions [see Washington Highlights, Sept. 7]. The legislation (which applies to any state plan amendment/waiver expanding SCHIP income eligibility levels) also prohibits promulgation or implementation of any requirement, rule, or provision "that is similar to any requirement in the August 17, 2007 letter." Cosponsors of S. 2049 include Sens. Claire McCaskill (D-Mo.) and Bob Casey (D-Pa.). Upon introduction of the bill, Sen. Smith described the new requirements as "unrealistic standards."

Similarly, 30 governors signed a Sept. 17 bipartisan letter to Secretary of Health and Human Services Michael Leavitt opposing the new SCHIP mandates. The governors (from N.Y., Calif., Iowa, Wash., N.J., Mich., Kan., Ohio, Ill., Conn., Okla., N.H., Ore., Ariz., N.M., Pa., Del., La., Vt., Ark., Maine, Colo., S.D., Wyo., Mass., Md., R.I., W.Va., P.R., and V.I.) call for immediate rescission of the requirements. Explaining that they are "deeply troubled" by the "mandates that limit state flexibility," the governors state that the new rules "undermine the foundation of the state-federal partnership upon which SCHIP was built."

Information:
Christiane Mitchell, Senior Legislative Analyst
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526

Congress Approves FDA Compromise

Both the House and Senate have approved a comprehensive legislative package to reauthorize drug industry user fees, provide greater incentives for pediatric drug testing, and require reporting of clinical trial results. The House passed the measure Sept. 19, 405-7, under suspension of the rules, while the Senate passed it by unanimous consent the following day.

The final legislation (H.R. 3580) reflects a compromise between House and Senate bills to reauthorize various programs at the Food and Drug Administration (FDA) [see Washington Highlights, July 13]. The measure reauthorizes through FY 2012 the Prescription Drug User Fee Amendments (PDUFA) and the Medical Device User Fee Amendments (MDUFA), which expire Sept. 30, and includes a number of provisions intended to improve drug safety.

Also included in the bill is a provision expanding the ClinicalTrials.gov data bank at the Library of Medicine to include registry information for clinical trials of all drugs, biologics, and devices, as well as results information for clinical trials of approved products. The compromise measure does not require that submitted information conform to the International Clinical Trials Registry Platform data set of the World Health Organization, as required in both the House- (H.R. 2900) and Senate-passed (S. 1082) bills. However, the measure does direct the Secretary of Health and Human Services to "consider the status of the consensus data elements set for reporting clinical trial results of the World Health Organization." According to a summary prepared by the House Committee on Energy and Commerce, the compromise also directs the Secretary to expand the data bank further to include unapproved products and additional data elements through rulemaking.

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

OMB Releases Risk Assessment Memorandum

The White House's Office of Management and Budget (OMB) and Office of Science and Technology Policy (OSTP) released a Sept. 19 memorandum announcing that OMB was retracting its proposed guidelines on risk assessment issued in 2006 [see Washington Highlights, March 17, 2006]. The National Academies of Sciences had strongly criticized the proposed guidelines, which would have set standards for federal regulatory and science agencies tasked with assessing health, environmental, and other risks, as being too restrictive and setting requirements beyond what the current state-of-art could justify. The AAMC criticized the guidelines as potentially constraining the ability of public health officials to make timely decisions and communications on the basis of available risk information. The OMB/OSTP memorandum reinforces a 1995 policy guiding risk assessment and updates the Administration's policy at some length, including citations to more recent reforms such as the Information Quality Guidelines.

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

NIH Awards Second Round of CTSA Funding

The National Institutes of Health (NIH) Sept. 18 announced it has expanded its clinical and translational research consortium, adding another 12 academic health centers to the original group of 12 named last October. The participating institutions, funded through Clinical and Translational Science Awards (CTSAs), will work to translate research rapidly into prevention strategies and clinical treatments for patients. When fully implemented in 2012, 60 institutions will belong to the consortium. The following academic health centers received new funding awards: Case Western Reserve University; Emory University/Morehouse School of Medicine; Johns Hopkins University; University of Chicago; University of Iowa; University of Michigan; University of Texas Southwestern Medical Center; University of Washington; University of Wisconsin; Vanderbilt University/Meharry Medical College; Washington University in St. Louis; and Weill Cornell Medical College/Hunter College. According to NIH, total funding for these new awards will be approximately $574 million over a 5-year budget period.

A third funding opportunity for CTSAs has been announced. Applications are due Nov. 7.

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

Report Addresses Rate of SCHIP "Crowd-Out"

The Centers for Medicare and Medicaid Services (CMS) Sept. 19 released the "National Evaluation of the State Children's Health Insurance Program," a report examining SCHIP's impact on coverage and access to care. The report also reviews the effectiveness of outreach initiatives and the substitution of SCHIP for private coverage ("crowd-out"). While the CMS report states that "some amount of substitution is unavoidable," it explains that various data sources and methodologies "yield wide ranging estimates" on the magnitude of crowd-out. Population-based studies indicate a substitution rate of up to 56 percent, while enrollee-based studies that exclude "involuntary loss of coverage" (e.g., divorce, job loss) show a rate of up to 15 percent. The Congressional Budget Office estimates that the House- and Senate-passed SCHIP reauthorization bills would produce a crowd-out rate of 33 percent, prompting veto threats from President Bush.

Information:
Christiane Mitchell, Senior Legislative Analyst
AAMC Government Relations
cmitchell@aamc.org
(202) 828-0526