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Washington Highlights: October 3, 2008

President Signs Spending Bill

President Bush Sept. 30 signed a continuing resolution (P.L. 110-329) to fund most of the federal government at FY 2008 levels through March 6, 2009, allowing Congress to negotiate final FY 2009 spending decisions with a new administration. The bill also includes the full FY 2009 spending bills for defense, homeland security, and military construction-VA, including increases over FY 2008 for VA medical care and VA research.

In a statement, President Bush noted that he was "disappointed" that Congress opted to postpone the appropriations process to March. The Senate Sept. 27 approved the package, 78-12, while the House voted Sept. 24, 370-58 [see Washington Highlights, Sept. 26].

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

AAMC Submits Joint Comment Letter on Human Subject Protection Training and Education

The AAMC, with the Council on Governmental Relations and Association of American Universities, Sept. 26 submitted a comment letter to the Office for Human Research Protections (OHRP), in response to a July 1 "Request for Information [RFI] and Comments on the Implementation of Human Subjects Protection Training and Education Programs" [see Washington Highlights, July 11]. The letter emphasizes the evolution of local educational and training programs, supports the role of the Federalwide Assurance (FWA), and denies the need for additional guidance or regulations on the issue of human subject protection and training. The letter also encourages OHRP to expand mechanisms to fund the development of training tools and modules at a national level.

Information:
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Sens. Schumer and Clinton Introduce Bill to Delay Capital IME Cuts

Senators Charles Schumer (D-NY) and Hillary Clinton (D-NY) Oct. 1 introduced the "Preserving Access to Healthcare (PATH) Act of 2008" (S. 3656), which retroactively delays for 6 months (from Oct. 1, 2008 until March 31, 2009) a 2-year phase-out of capital IME payments for teaching hospitals. Without legislative intervention, Medicare's FY 2009 Inpatient PPS Final Rule reduces by 50 percent the IME adjustment under the capital reimbursement system, effective Oct. 1, 2008. The Final Rule completely eliminates the capital IME adjustment in FY 2010 [see Washington Highlights, Aug. 8].

The bill also will delay by 6 months implementation of the Medicaid outpatient proposed rule, which was not addressed by the recently enacted "Medicaid Moratorium" (P.L. 110-252). The PATH Act fully offsets the costs of the capital IME provisions ($86 million over 5 years), Medicaid outpatient provisions ($45 million over 5 years), and other provisions in the bill, by establishing a Medicaid initiative to improve coding accuracy and by extending a California-based family planning demonstration program.

Information:
Travis W. Crytzer, Legislative Analyst
AAMC Government Relations
tcrytzer@aamc.org
(202) 828-0418

Congress Approves Conrad Visa Waiver Program Extension, Increases Flex-Slots

The Senate Sept. 26 and the House Sept. 27 approved legislation (H.R. 5571) to extend the Conrad 30 State J-1 visa waiver program through March 6, 2009. The bill also includes an AAMC-supported provision that doubles to 10 the program's "flex-slots," the number of physicians per state who may serve in facilities, often teaching hospitals, that are located outside medically underserved areas but that treat patients from those areas.

The State Conrad 30 program allows state departments of health to request waivers of the J-1 visa home country service requirement for up to 30 foreign physicians per year to work in federally designated health professions shortage or medically underserved areas. The House originally passed the bill in May with a 5-year authorization to 2013, but the Senate shortened the extension to 6 months by amendment and the House concurred with that change.

Sen. Kent Conrad (D-N.D.) had proposed more extensive reforms in a bill (S. 2672) introduced Feb. 27 [see Washington Highlights, Feb. 29]. AAMC President and CEO Darrell G. Kirch, M.D., sent an April 2 letter supporting the proposed reforms in S. 2672.

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

DeGette, Castle Introduce New Stem Cell Research Legislation

Reps. Diana DeGette (D-Colo.) and Michael Castle (R-Del.) Sept. 26 introduced a new "Stem Cell Research Enhancement Act of 2008" (H.R. 7141) that builds upon the original bill (H.R. 3) in preparation for the new administration and 111th Congress. In a Sept. 27 press release, Rep. DeGette indicated that the bill "not only reverses President Bush's draconian restrictions, but it also puts in place an overarching ethical framework for all stem cell research, adult and embryonic, to move forward."

The measure would require the National Institutes of Health (NIH) to develop federal guidelines for human stem cell research within 90 days of enactment and provides for periodic updates to the guidelines as scientifically warranted, but at least every 3 years. The bill also updates the reporting requirements section from H.R. 3 to comply with the biennial reporting requirements set out in the "NIH Reform Act of 2006" (P.L. 109-482).

The House passed H.R. 3 on Jan. 11, 2007 [see Washington Highlights, Jan. 12, 2007]. A nearly identical measure (S. 5) was approved by both the House and the Senate before President Bush vetoed it on June 20, 2007 [see Washington Highlights, June 22, 2007].

Rep. DeGette also introduced on Sept. 26, H.R. 7140, a bill to increase protections for human subjects in research. An earlier draft of that bill extended application of the Common Rule to all human subject research and required that the Secretary of Health and Human Services review the extent to which various human subject provisions can be harmonized.

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

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

IRS Sends Compliance Questionnaires to Colleges and Universities

The Internal Revenue Service (IRS) Oct. 1 announced that approximately 400 U.S. colleges and universities will receive compliance surveys in the next few days as part of the agency's focused effort to study key activities of tax-exempt institutions. According to the IRS press release, "the college and university questionnaire will focus on unrelated business income, endowments and executive compensation practices. The questionnaires are being sent to a cross-section of small, mid-sized and large private and public four-year colleges and institutions."

The IRS expects to receive most of the responses within the next several months, analyze the results of the compliance questionnaire and conduct examinations of a sample of the organizations. The agency expects to issue a report on the project in 2009.

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