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Washington Highlights: September 12, 2008

AAMC Joins Medical Associations Comment Letter to Department of Education

The AAMC Aug.14 joined almost 100 medical organizations in a comment letter to the Department of Education in response to a notice of proposed rulemaking, to implement the "College Cost Reduction and Access Act of 2007" (P.L. 110-84) [See Washington Highlights, July 11]. The letter thanks the Department for its work in the negotiating sessions and urges it "to reinstate the 20/220 pathway permanently or provide an equivalent funding mechanism for loan deferments so that medical residents continue to have an option to postpone loan payments, without facing financial penalties, during a crucial time in their training."

Effective July 1, 2009, the proposed regulations eliminate the "20/220 pathway" of the economic hardship deferment, which allows medical residents to postpone repayment of their student loans for up to 3 years without the additional interest of forbearance. The new regulations also define public service for a new loan forgiveness program and implement the income-based repayment program authorized by the legislation.

The public comment period for the proposed rule ended Aug. 15. A final rule is expected to be published in November.

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

Emergency GME Regulations Finalized in Inpatient Final Rule

The Centers for Medicare and Medicaid Services (CMS) Aug. 19 included previously "interim final" regulations issued in 2006 and 2007 in the FY 2009 Medicare inpatient final rule. These regulations address continuation of direct Graduate Medical Education (GME) and Indirect Medical Education (IME) payments when hospitals located in emergency or disaster areas must temporarily suspend operations (73 Fed. Reg. 48638). As finalized, the emergency GME regulations allow affected hospitals to enter into GME resident cap affiliation agreements and transfer their caps to any other hospital in the country, thus bypassing the geographic requirements contained in the non-emergency cap affiliation agreements. The hospitals involved also do not need to have shared residency rotational arrangements, another requirement of the non-emergency regulations.

CMS had originally issued interim final regulations in early 2006 to help teaching hospitals located in New Orleans and other areas affected by hurricanes Rita and Katrina. Without a provision to allow for the affected hospitals to transfer their resident cap slots to other teaching hospitals, hospitals that were at their cap maximums but still took on the additional residents would not receive the IME and GME payments associated with the additional residents.

The new regulations will be published in the Oct. 1, 2008, version of volume 42 of the Code of Federal Regulations, sections 413.75(b) and 413.79(f).

Information:
Karen Fisher, Sr. Director, Health Care Affairs
AAMC Health Care Affairs
kfisher@aamc.org
(202) 862-6140

CMS Posts Evidentiary Priorities for the Elderly Population

The Center for Medicare and Medicaid Services (CMS) Aug. 8 posted on its website "Evidentiary Priorities for the Elderly Population" identifying the top priorities for the research community in the domain of eldercare. This is the first time that such a list has been provided to the public on the CMS Coverage website.

A workshop of participants from 13 of the National Institutes of Health, the Centers for Disease Control, the Agency for Healthcare Research and Quality, and CMS worked in collaboration with a panel of the Medicare Evidence Development & Coverage Advisory Committee (MedCAC).

CMS grouped the Medicare Evidentiary Priorities into three categories: Diagnostics and Screening, Interventions, and Policy Issues. The agency encourages researchers to consider these research priorities when designing studies that directly affect the health of the elderly. Additional information including the full listing of research priorities can be found of the CMS website.

Information:
Will Dardani, Constituent Services Specialist
AAMC Health Care Affairs
wdardani@aamc.org
(202) 828-0541

CMS Publishes ICD-10 Proposed; Electronic Transaction Rules

The Centers for Medicare and Medicaid Services (CMS) Aug. 22 published a proposed rule that would replace the current ICD-9 codes set, used to report health care diagnoses and procedures on health care transaction claims, with a new version, known as ICD-10. If finalized, hospitals, physicians and other entities would be required to use the new code set effective Oct. 1, 2011.

A primary reason for moving to ICD-10 is that the ICD-9 system is running out of new codes, which are needed to accommodate advances in medicine and medical technology; ICD-9 has 17,000 codes compared to 155,000 codes in the ICD-10 system. CMS also states that the ICD-10 code set would better support value-based purchasing and quality initiatives. The costs associated with learning the new codes and updating transaction software has been a chief concern of providers, particularly physicians.

Also on Aug. 22, CMS published a separate proposed rule that would require adoption of new electronic transaction standards for health care and pharmacy claims. If finalized, this requirement would be effective April 2010.

Comments on both proposed rules are due October 21.

Informaton:
Karen Fisher, Sr. Director, Health Care Affairs
AAMC Health Care Affairs
kfisher@aamc.org
(202) 862-6140

Patient Safety Common Formats Released

The Agency for Healthcare Research and Quality (AHRQ) Aug. 29 published in the Federal Register the Common Formats, Version 0.1 Beta for implementation of the "Patient Safety and Quality Improvement Act of 2005" (P.L. 109-41). Requested by the Secretary of Health and Human Services, the Common Formats provides a set of common definitions and reporting requirements for standardized and uniform collection of patient safety data that would allow for national aggregation.

AHRQ is soliciting comments on the beta version of the Common Formats and has contracted with the National Quality Forum (NQF) to assist with gathering and analyzing input and feedback. This will allow for multi-stakeholder involvement and input. AHRQ expects that a second version of the formats will be released within 6 to 9 months based on the feedback received and then updated on a yearly basis going forward.

The "Patient Safety and Quality Improvement Act," which establishes a network of Patient Safety Organizations (PSOs) designed to collected patient safety data, was enacted to help address the barriers in analysis and implementation of improvement strategies pertaining to patient safety nationwide. The PSOs will be designed not only to assist hospitals, but to aggregate patient safety data on a national level to identify and eliminate systemic errors across the healthcare system.

Information:
Jennifer Faerberg, Director, Health Care Affairs
AAMC Health Care Affairs
jfaerberg@aamc.org
(202) 862-6221

AHRQ Seeks Comments on New Innovations Portfolio

The Agency for Healthcare Research and Quality (AHRQ) Aug. 15 published in the Federal Register a notice seeking recommendations for priority topics and activities to include as part of a new "Innovations" research portfolio. According to the notice, the new portfolio will support "high impact" research projects "substantially different from those already being pursued by AHRQ," with an aim of "problem solving" in health care organization, delivery, and management.

Comments should be submitted to AHRQ by Oct. 14. AAMC member institutions submitting comments are requested to also send a copy to the AAMC.

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

NSF Reports "Unprecedented" Decline in Federal Support for Research

The National Science Foundation (NSF) Aug. 27 issued a report indicating that federal funding for scientific research and development (R&D) at academic institutions has declined for the second consecutive year, adjusting for inflation. According to the report, this is the only instance in which federal support of academic R&D has failed to keep pace with inflation for two years running since the data series began in 1972.

According to NSF, federally funded academic R&D expenditures rose in current dollars 1.1 percent in FY 2007 to $30.4 billion. "After adjusting for inflation, this represents a 1.6 percent decline from FY 2006 and follows a 0.2 percent decline from the FY 2005 level." Overall, university R&D rose by 0.8 percent, adjusting for inflation due to other sources of support, including institutions' own funds. The federal government remains the largest share (62 percent in FY 2007) of support for university research. Medical and biological sciences continue to make up more than half of all federal research expenditures, predominantly performed at U.S. medical schools. The NSF also reports expenditures at minority institutions, including for the first time at "high-Hispanic enrollment institutions."

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