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Washington Highlights: May 16, 2008

Emergency War Spending Bills Include Extension of Medicaid Moratorium; White House Threatens Veto

The House of Representatives May 15 amended its emergency supplemental appropriations legislation (H.R. 2642) to include provisions that extend until April 1, 2009 the current Medicaid moratorium prohibiting CMS action on the regulations affecting graduate medical education ("GME proposed rule") and cost limits/units of government ("IGT final rule"). Passing by a vote of 256-166, the amendment also temporarily delays action on five other Medicaid regulations and increases other types of domestic spending (eg, unemployment insurance and education benefits for veterans).

The 32 House Republicans voting in support of the amendment included: Reps. Buyer (Ind.); Capito (W.Va.); Hayes (N.C.); Johnson (Ill.); Jones (N.C.); Petri (Wisc.); Platts (Pa.); Porter (Nev.); Ramstad (Minn.); Renzi (Ariz.); Ros-Lehtinen (Fla.); Castle (Del.); Dent (Pa.); Emerson (Mo.); English (Pa.); Fortenberry (Neb.); Fossella (N.Y.); Gilchrest (Md.); King (N.Y.); Kirk (Ill.); Knollenberg (Mich.); LaHood (Ill.); LaTourette (Ohio); LoBiondo (N.J.); McHugh (N.Y.); Miller (Mich.); Murphy (Pa.); Shays (Conn.); Smith (N.J.); Upton (Mich.); Whitfield (Ky.); and Young (Alaska).

The 7 Democrats voting against the amendment include: Reps. Bean (Ill.); Boren (Okla.); Lampson (Texas); Mahoney (Fla.); Donnelly (Ind.); Ellsworth (Ind.); and Matheson (Utah).

Potentially complicating but not necessarily preventing a final bi-cameral agreement on H.R. 2642, the House unexpectedly failed to pass (141-149) an amendment to actually fund the wars in Iraq and Afghanistan. Expressing their overall opposition to the wars, 147 Democrats voted against allowing additional funding, while 132 Republicans voted "Present" in opposition to a bill conservative Republican Study Commission member Mike Pence called "a backroom deal that included billions in unrelated domestic spending."

The Senate is scheduled to reconvene on Monday, May 19, when it is expected to begin its floor debate on supplemental appropriations legislation. While a final floor strategy remains uncertain, the Senate could choose to take up the House bill and then amend it by substituting portions of the emergency appropriations bill approved by the Senate Appropriations Committee on May 15. The committee's bill, which passed by a voice vote, also includes AAMC-supported language to extend the Medicaid moratorium affecting the GME proposed rule and IGT final rule. The Senate bill also reportedly includes additional FY 2008 funding for the NIH [see Washington Highlights, May 9], among billions of dollars in other domestic spending unrelated to the war.

Meanwhile, a May 15 White House Statement of Administration Policy (SAP) warned Congress that the President would veto the House supplemental appropriations legislation if "presented to the President in its current form." The SAP criticizes the bill for altering current war policies; adding "unrequested domestic spending," including the extension of the current Medicaid moratorium, and increasing taxes. The SAP states that Congress "must remain focused on our troops and national security" and not make the supplemental appropriations bill "a vehicle for additional domestic spending."

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

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

AAMC Endorses Senate's Physician Payments Sunshine Act

AAMC President and CEO Darrell G. Kirch May 2 sent a letter to Senate Finance Committee Ranking Member Charles Grassley (R-Iowa) endorsing the Senate's amended version of the "Physician Payments Sunshine Act" (S. 2029). The letter states, "An effective and principled partnership between academic medical centers and various health product industries is critical to realize fully the benefits of biomedical research and ensure continued advances in the prevention, diagnosis, and treatment of disease… A fundamental principle that should guide these interactions is that they should be transparent."

The legislation will require drug, device, or medical supply manufacturers that receive payments through Medicare, Medicaid, or the State Children's Health Insurance Program (SCHIP) to disclose to the Secretary of Health and Human Services on a quarterly basis anything of value given to doctors, such as payments, gifts, honoraria, or travel. Companies also must submit annual summaries of the information reported [see Washington Highlights, March 28]. The amended Senate version eliminates the threshold to determine which companies will be required to report. It also lowers the cap on mandatory reporting from $25 to $15. In addition, the amended Senate bill will preempt any state laws.

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

AAMC Responds to Proposed HPSA Rule

In a May 15 letter to Secretary of Health and Human Services (HHS) Michael Leavitt, AAMC President and CEO Darrell G. Kirch, M.D., urged HHS to extend by at least six months the public comment period for the proposed rule, "Designation of Medically Underserved Populations and Health Professional Shortage Areas" (73 FR 11232). The letter continues to recommend that HHS convene a panel of affected stakeholders and community experts for a public discussion of proposed new methodology.

The proposed rule revises and consolidates the criteria for designating medically underserved populations (MUPs) and health professional shortage areas (HPSAs) into a single new methodology called the Index of Primary Care Underservice. HHS proposed the rule Feb. 29 and originally provided a 60-day period for written comments. In response to requests for an extension, HHS pushed back the deadline an additional 30 days to May 29 [see Washington Highlights, May 2].

The AAMC letter notes that limited federal funding and the pending workforce shortage warrant a careful examination of the current designation methodology. Further, the letter states "While we appreciate the significant effort made to develop the proposed rule, many basic questions remain regarding its implementation and the potential impact on many safety net providers… The AAMC is concerned that a narrow comment period with one opportunity for community input does not allow for a constructive dialogue between involved parties."

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

Rajeev Sabharwal, Senior Research Associate
AAMC Medical School Affairs
rsabharwal@aamc.org
(202) 828-0979

AAMC Comments on HEA Reauthorization Conference

The AAMC May 15 sent a letter to the House and Senate education committees regarding ongoing Conference of the "College Opportunity and Affordability Act of 2007" (H.R. 4137) and the "Higher Education Amendments of 2007" (S.1642). The letter comments on provisions of the Higher Education Act (HEA) reauthorization bills that could affect medical education including loan repayment, financial aid, institutional grant programs, and accreditation. Congress has not completed a full reauthorization of HEA since 1998.

The letter urges conferees to reinstate the debt-to-income ratio (20/220 pathway) of the economic hardship deferment. The economic hardship deferment allows residents who meet certain debt and income criteria to postpone loan repayments during their training, without the additional interest that accrues in forbearance. On March 5, 2008, the Department of Education announced that they would no longer use its regulatory authority to continue the 20/220 pathway, and would stop accepting applications effective July 1, 2009. [see Washington Highlights, March 14]

The letter notes that the AAMC supports full transparency in medical schools' lender relationships. However, the AAMC "opposes the House language that would prohibit financial aid administrators from participating on lender advisory boards. The AAMC encourages the reimbursement of domestic travel and "reasonable expenses" for these purposes and recommends adoption of the Senate language to promote the valued guidance of the institutional financial aid community with disclosure of their interactions."

The letter is also supportive of:

  • Proposed increased Perkins Loan limits, expanded intuitional Graduate Assistance in Areas of National Need (GAANN) grants;
  • A new loan forgiveness program for "medical specialists;" and
  • House report language that clarifies the addition of institutional mission-related accrediting criteria is not intended to alter current accreditation requirements for training health professionals.

Conferees aim to wrap up negotiations on the HEA reauthorization bills before adjourning for the Memorial Day recess.

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

Congress Clears Farm Bill with Language on Class B Study, AWA Fines

The House May 14 and the Senate May 15 approved the conference agreement for agricultural policy legislation (the "farm bill," H.R. 2419) that includes a provision examining the use of "Class B" random source cats and dogs in research supported by the National Institutes of Health (NIH). The conference report directs the U.S. Department of Agriculture (USDA) to report the results and recommendations of a pending NIH-commissioned study on the issue to the House and Senate Committees on Agriculture. In response to biomedical research concerns, the conference report does not include language eliminating Class B dealers.

The conference agreement also increases from $2,500 to $10,000 the maximum fine the USDA can levy for violations of the Animal Welfare Act (AWA).

The White House had issued a May 13 statement expressing disappointment in the cost of the farm bill package and the President's intent to veto the bill. The overwhelming vote margins in both chambers (318-106 and 81-15 in the House and Senate, respectively), however, are well over the two-thirds majorities required to overturn a veto.

Information:
Tannaz Rasouli, Senior Legislative Analyst
AAMC Government Relations
trasouli@aamc.org
(202) 828-0525

On The Hill

Democrat Travis Childers (Miss.) defeated Republican challenger Greg Davis in a May 13 special election for Mississippi's 1st district House seat. Rep.-elect Childers will finish the term of former Rep. Roger Wicker (R), who was appointed to succeed former Sen. Trent Lott (R). The victory marks a third gain for Democrats as a result of special elections in the 110th Congress.