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Washington Highlights: September 26, 2008

Congress Approves Continued Funding for Fiscal Year 2009

Congress Sept. 27 completed legislation to provide stop-gap funding for federal programs in the new fiscal year, which begins Oct. 1. The House voted (370-58) Sept. 24 and the Senate voted (78-12) Sept. 27 to approve the continuing resolution (CR) that will fund much of the federal government, including the NIH and Title VII health education programs, at the current FY 2008 levels through March 6. The CR was passed as an amendment to H.R. 2638, the FY 2008 homeland security spending bill, to permit it to bypass committee action on several portions of the package.At press time, the Senate continued to debate the CR but is not likely to vote on it before Sept. 27. Senate Majority Leader Harry Reid (D-Nev.) said he will move to limit debate, setting up a vote on cloture Sept. 27.

The CR was necessary because none of the 12 individual FY 2009 appropriations bills - which account for about 40 percent of the total federal budget - had been enacted into law. The CR includes the full FY 2009 spending bills for defense, homeland security, and military construction-VA. This portion of the package includes $40.4 billion for VA medical care, an increase of $3.46 billion (9.4 percent), and $510 million for VA research, a $30 million (6.3 percent) increase over FY 2008.

The CR includes a $22.9 billion disaster relief package and additional funding above the FY 2008 levels for a select number of programs, such as low-income energy assistance, Nutrition for Women, Infants and Children (WIC), and Pell Grants.

The White House has not issued an official reaction to the CR. The Administration had previously stated a preference for a CR through mid-November.

Summaries of the various parts of the legislative package, as well as the text of the legislation, are available on the House Appropriations Committee website.

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

Senate Rejects Economic Stimulus Plan

The Senate Sept. 26 rejected a proposal for a $56.2 billion economic recovery package that would have increased funding for medical and scientific research and public health. The package (S. 3604), released Sept. 25 by Senate Majority Leader Harry Reid (D-Nev.) and Senate Appropriations Committee Chairman Robert C. Byrd (D-W.Va.), also included $19.6 billion to reduce the states share of Medicaid costs by increasing the federal share by 4 percent. The Senate vote of 52-42 on a motion to proceed with consideration of the proposal fell 8 votes short of the 60 needed for passage.

Meanwhile, House Democrats released their own stimulus plan (H.R. 7110) Sept. 26 that focuses on creating jobs and funding infrastructure projects. The House proposal includes additional Medicaid funding for states but does not provide additional funding for research or public health. The House Rules Committee Sept. 25 approved by voice vote a rule that would permit the House to consider the package on Sept. 26.

The Reid-Byrd "Economic Recovery Act of 2008" included an additional $1.2 billion for NIH. According to a summary released by Senators Reid and Byrd, these funds would "restore some of the purchasing power of NIH that was lost because of inflation in the past five years and allow NIH to award at least 3,300 new research project grants." The Senate package also included $150 million for the Department of Energy's Office of Science, $46 million for the CDC for combating infectious diseases and investigating disease clusters and $905 million for the Public Health and Social Services Emergency Fund (PHSSEF) to enhance the Nation's preparedness to cope with a potential pandemic flu outbreak or the use of a biological weapon.

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

AAMC Asks HHS to Withdraw Provider Conscience Rule

The AAMC Sept. 23 submitted a comment letter to the Department of Heath and Human Service (HHS) in response to the proposed rule, "Ensuring That Department of Health and Human Services Funds Do Not Support Coercive or Discriminatory Policies or Practices in Violation of Federal Law" (73 Fed Reg 50274). The AAMC letter strongly urges the department to withdraw the rule, which seeks to ensure that HHS funds "do not support morally coercive discriminatory practices or policies in violation of already existing federal laws," as the department has produced no evidence that it is needed.

In its comment letter, the AAMC acknowledges that ethical and moral issues within the context of health care require a careful balance between the rights of the health care professional to avoid behavior that violates his/her moral or ethical code, and the right of a patient to receive legal health care services that are medically appropriate. However, the rights of the patient, who is in a more vulnerable position, must be given precedence. The letter indicates that view is woven into a physician's education, beginning in medical school and continuing throughout residency training.

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

AAMC Submits Comment Letter on DEA e-Prescribing Proposal

The AAMC Sept. 25 submitted a comment letter in response to a Drug Enforcement Administration (DEA) proposed rule, "Electronic Prescriptions for Controlled Substances," (73 Fed Reg 36772). The rule would set requirements for practitioners that use electronic prescriptions for controlled substances. The AAMC letter expresses reservations about the proposal and questions whether the requirements can be met given the current state of electronic health records.

The AAMC comment letter also suggests that the DEA establish a stakeholders group comprised of representatives of hospitals, physicians, pharmacies, electronic health records vendors, CMS staff, and other interested parties to develop a regulation that is consistent with existing federal and state requirements, relies on proven technologies currently in use, and acknowledges the wide variations in medical practice patterns.

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

Congress Passes NHSC Reauthorization

The Senate Sept. 24 and the House Sept. 25 approved by voice vote a bill (H.R 1343) that reauthorizes the National Health Service Corps (NHSC) through FY 2012. The "Health Care Safety Net Act of 2008" authorizes initial funding from $131.5 million for NHSC increasing each year to $185.6 million in FY 2012. The final package more closely resembles the Senate companion bill (S.901) than the original House legislation, which did not include a NHSC reauthorization provision. The Consolidated Appropriations Act of 2008 provided $123.5 million for the NHSC.

The bill also removes the current provision that requires health centers and clinics to demonstrate eligibility as a health professions shortage area every 6 years. The legislation also requires that each qualifying site demonstrate "willingness to support or facilitate mentorship, professional development, and training opportunities for Corps members," and directs the Secretary of Health and Human Services to facilitate professional relationships among Corps members and other health professionals. Specifically, the measure emphasizes faculty appointments at health professions schools, and relationships with hospitals, academic medical centers, and Title VII Area Health Education Centers (AHEC) and Health Education Training Centers (HETC).

The reauthorization is part of a package that also reauthorizes the Community Health Centers Program and the Rural Health Care Programs. Additionally, the measure includes a GAO study on the delivery of care to medically underserved and underinsured populations and a GAO study concerning the implications of extending Federal Tort Claims Act coverage to health care professionals who volunteer to furnish care to patients of health centers.

AAMC President and CEO Darrell G. Kirch, M.D., Aug. 7 sent a letter to Congress in support of a $300 million NHSC authorization in the final version of the reauthorization bills [see Washington Highlights, Aug. 8].

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

House and Senate Pass Compromise Mental Health Parity Legislation

The House and Senate Sep. 24 both passed compromise mental health parity legislation, the "Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008" (H.R. 6983). The Senate voted 84-11 to add the legislation as an amendment to the "Renewable Energy and Job Creation Act of 2008" (H.R. 6049). With parity included, the package later passed 93-2. The House passed the parity bill (H.R. 6983) 376-47 as a stand-alone piece of legislation. The two chambers will now have to agree on one vehicle for the legislation before it can be sent to the President.

The proposed mental health parity legislation attempts to prevent discrimination in group health plans against people with mental illness by closing loopholes included in the "Mental Health Parity Act of 1996" (P.L. 104-204). The current proposed legislation would:

  • apply to all group health plans that already provide mental health coverage, but exclude plans offered by employers of less than 50 people, as did the 1996 legislation;
  • prohibit limitations on treatment and financial obligations that are different than those applied for other medical or surgical services; and
  • eliminate loopholes that permit discrimination in terms of co-pays, deductibles, maximum out of pocket expenses, and length-of-stay and visit limitations that currently exist in health insurance plans.

Information:
Abigail Schopick, Legislative Analyst
AAMC Government Relations
aschopick@aamc.org
(202) 828-0525

NCRR Advisory Council Rolls Out Strategic Plan

The National Institutes of Health's National Center for Research Resources (NCRR) presented its new strategic plan at the Sept. 16 meeting of the center's advisory council. The plan, developed over the past year [see Washington Highlights, April 25], provides for NCRR's priorities and goals for research infrastructure, informatics, and biomedical research workforce needs from fiscal years 2009 to 2013. The NCRR is the only major component of the NIH that provides for infrastructure and resource needs for all areas of biomedical research.

The council meeting also included presentations on the Clinical and Translational Science Awards (CTSA) program, including a presentation by Daniel Ford, M.D., Vice Dean for Clinical Investigation at Johns Hopkins School of Medicine, on efforts by CTSA institutions to improve management of clinical trials.

In a Sept. 10, 2007, comment letter [see Washington Highlights, Sept. 14, 2007], the AAMC urged the NCRR to emphasize initiatives to overcome the so-called "second translational block;" i.e., moving validated medical innovations into clinical practice. The AAMC also urged development of mechanisms for facilitating collaborations among academic institutions. Both recommendations are reflected in the final strategic plan.

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

Dr. Zerhouni to End Tenure as NIH Director

Elias Zerhouni, M.D., Sept. 24 announced that he will step down as the 15th Director of the National Institutes of Health (NIH), effective in late October, 2008. Dr. Zerhouni said he will pursue writing projects and explore other professional opportunities.

In a Sept. 24 statement on Dr. Zerhouni's announcement, AAMC President and CEO Darrell G. Kirch, M.D., noted "Since his appointment in 2002, Dr. Zerhouni has tackled the dual challenges of leading the NIH during the final years of the doubling and unprecedented investment in research, and the difficult years that followed as the agency experienced consistently flat funding….The nation's medical schools and major teaching hospitals thank Dr. Zerhouni for his many contributions and service to our country."

Dr. Zerhouni, a radiologist, was confirmed by the U.S. Senate as NIH Director on May 2, 2002. Prior to joining the NIH, Dr. Zerhouni served as executive vice-dean of Johns Hopkins University School of Medicine, chair of the Russell H. Morgan department of radiology and radiological science, and Martin Donner professor of radiology, and professor of biomedical engineering.

Information:
Tony Mazzaschi, Senior Director
AAMC Scientific Affairs
tmazzaschi@aamc.org
(202) 828-0059