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Washington Highlights: January 23, 2009

House Panels Approve Economic Recovery Legislation

Three House committees approved portions of an economic recovery package that include $3.9 billion for the National Institutes of Health (NIH), a reversal of the FY 2009 cut to Indirect Medical Education (IME) payments made under Medicare's capital reimbursement system, a short-term extension of the current "Medicaid Moratorium," and state Medicaid relief.

The House Appropriations Committee Jan. 21 approved, 35-22, the portion of the package that includes $358 billion in discretionary spending. In addition to the NIH funding, the bill provides $600 million for primary care training through the Health Resources and Services Administration (HRSA), as well as funds for the Agency for Healthcare Research and Quality, comparative effectiveness research, and the Biomedical Advanced Research and Development Authority [see Washington Highlights, Jan. 16].

At the mark-up, House Appropriations Chair David Obey (D-Wis.) noted that it would be "irresponsible" for Congress to proceed with plans to reform the health care system without investing in such research and an expanded health care workforce. He also noted that health care is one of the few sectors of the economy in which jobs are increasing.

The House Ways and Means Committee Jan. 22 voted, 24-13, to approve economic recovery legislation that includes AAMC-supported provisions fully restoring FY 2009 capital IME payments to teaching hospitals ($175 million). It does not address the full elimination of the capital IME payments scheduled for FY 2010.

Also on Jan. 22, the House Energy and Commerce Committee approved its portion of the economic recovery package, which includes an extension until July 1, 2009, of the current moratorium prohibiting action related to the Medicaid GME proposed rule and Medicaid "IGT final rule" [see Washington Highlights, June 27, 2008]. Additionally, the legislation would provide a temporary (Oct. 1, 2008 to Dec. 31, 2010) 4.9 percent increase in the Federal Medical Assistance Percentage (FMAP) for all states. The bill establishes criteria whereby certain "high unemployment states" could receive additional FMAP increases. It also increases by 2.5 percent states' disproportionate share hospital (DSH) allotments for FY 2009 and FY 2010.

The three bills establish incentives to promote the adoption and "meaningful use" of health information technology (HIT). The HIT provisions also include increased health information privacy protections.

The three bills are expected to be combined and considered by the full House Jan. 28. The Senate is working on similar legislation, but as of press time, details were not available.

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

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

House Sign-On Letter Urges Obama Administration to Consider Hospital Relief in Stimulus Package

Led by Reps. Robert Brady (D-Pa.) and Joe Wilson (R-S.C.), a total of 130 House members (including 21 Republicans) signed a Jan. 16 letter to President Obama and his transition team, urging his strong support for economic recovery language that addresses several critical hospital issues.

Among the concerns raised by the letter is the immediate need to block cuts to Medicare's Capital IME payments (scheduled for full elimination by Oct. 1, 2009). The letter states that, "These unnecessary cuts ignore how vital these capital payments are to investment in the latest medical technology, ongoing maintenance and improvement of hospital facilities and importance of medical education."

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

Senators Reintroduce Physician Payments Sunshine Act

Senators Chuck Grassley (R-Iowa) and Herb Kohl (D-Wis.) Jan. 22 reintroduced the "Physician Payments Sunshine Act" (S. 301), which will require drug and medical device manufacturers to disclose all their payments and gifts to physicians, if the annual total to an individual physician is more than $100 [see Washington Highlights, Sept. 14, 2007]. 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 Department of Health and Human Services (HHS), on a quarterly basis, anything of value given to doctors, such as payments, gifts, honoraria, or travel. This would include funding given for continuing medical education and research grants.

The bill requires companies to report the name of the physician, the address of the physician's office, the value and the date of the payment or gift, its purpose, and what, if anything, was received in exchange. If a payment or other transfer of value was provided to an entity that the physician is employed by, has tenure with, has a significant ownership interest in, or to an organization in which the physician has a significant professional membership interest in, the company must report the entity and its primary place of business or headquarters. Companies that knowingly fail to report are subject to penalties up to $1 million, a change from the $100,000 maximum penalty in the previous bill.

The bill also requires HHS to establish no later than Nov. 1, 2009, procedures for companies to submit information and procedures for HHS to make the submitted information available to the public via a searchable online registry. The registry must be available to the public by Sept. 20, 2011. Reporting by companies would be mandatory beginning March 31, 2011.

The newly reintroduced legislation clarifies preemption provisions that were questioned in the previous version. The new bill specifies that states have the authority to collect additional information from companies as long as the information is not specifically covered by federal law. Additionally, related state law, such as the current ban on physician gifts in Massachusetts, would not be affected.

The AAMC endorsed the previous version of the Physician Payments Sunshine Act in the 110th Congress [see Washington Highlights, May 16, 2008]. The bill has two cosponsors and has been referred to the Senate Committee on Finance.

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

Obama Administration Undertakes Regulatory Review

Rahm Emanuel, Assistant to President Obama and Chief of Staff, issued a Jan. 20 memorandum to heads of executive departments and agencies with instruction for regulatory activity moving forward. The memorandum directs federal departments and agencies to:

  • Not send to the Office of the Federal Register any proposed or final regulations unless approved by an Obama appointee;
  • Withdraw all proposed or final regulations that have not been published in the Federal Register so they can be reviewed and approved; and,
  • Consider a 60 day extension in the effective date of regulations that have been published but have not yet taken effect "for the purpose of reviewing questions of law and policy raised by those regulations."

This memorandum will be published in the Federal Register.

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

HHS Consolidates Registration of Institutional Review Boards

The Department of Health And Human Services (HHS) Office for Human Research Protections (OHRP) Jan. 15 announced new regulations to require the registration of institutional review boards (IRBs) that review human subjects research conducted or supported by HHS and that are designated under an assurance of compliance approved for federal-wide use by OHRP. The registration will require IRBs to submit information previously provided on a voluntary basis.

The Federal Drug Administration (FDA) Jan. 15 issued a final rule allowing the operation of a single HHS IRB registration system. The final rule is effective July 14. All IRBs must comply with the initial registration requirement and, if necessary, make required revisions to their registrations by Sept. 14, 2009.

OHRP states that the IRB registration system is compatible with FDA IRB registration requirements. IRBs may register on the OHRP website.

Information:
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FDA Releases Final Guidance on Adverse Event Reporting

The Food and Drug Administration (FDA) Jan. 15 released its final guidance document on clinical trial adverse event reporting. The new guidance clarifies the types of unanticipated problems that must be reported to the institutional review board (IRB), and suggests that for multi-site studies the sponsor instead of the investigator assume responsibility of assessing whether an adverse event is an unanticipated problem.

According to the guidance, investigators and sponsors should only consider an adverse event to be an unanticipated problem if the adverse event is "unexpected, serious, and would have implications for the conduct of the study," therefore requiring considerable, safety-related protocol or consent changes.

The guidance describes the categories of unanticipated problems that need to be reported to the IRB. The final document lists two categories of unanticipated problems not mentioned in the initial draft guidance issued in April 2007: when the adverse event is not associated with the study drug but is not common in the studied population; and when there is a clinically significant increase in rate of occurrence of an anticipated serious adverse event.

The guidance also clarifies requirements for reporting of "unanticipated adverse device effect" (UADE) to the sponsor and IRB.

Information:
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FDA Seeks Comments on Participation in Clinical Drug Trials

The Food and Drug Administration (FDA) Jan. 13 published a Federal Register notice requesting information and comments from medical product manufacturers, institutional review boards (IRBs), academic researchers, and patient groups on issues related to the participation of elderly, children, racially and ethnically diverse communities, and medically underserved populations in clinical trials.

Written or electronic comments should be submitted online or to the Division of Dockets Management by Feb. 27, 2009.

Information:
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Besser to Serve as Acting Director of CDC

Richard Besser, M.D., was named Acting Director of the Centers for Disease Control and Prevention (CDC) upon the departure of outgoing Director Julie Gerberding, M.D., M.P.H., who stepped down Jan. 22, after six years. Dr. Besser, a board certified pediatrician, has a strong background in public health, and has worked with the CDC for many years. Dr. Besser has served in the CDC's Epidemic Intelligence Service, working on tracking food borne diseases and various other infectious disease issues. He has also been a leader in the fight to prevent overprescribing of antibiotics. Additionally, Dr. Besser worked on public health emergency preparedness and emergency response, as the Director of the Coordinating Office for Terrorism Preparedness and Emergency Response.

On the Hill...

Secretary of State Hillary Clinton was sworn in Jan. 21 shortly after the Senate voted to confirm her nomination. New York Gov. David Paterson (D) is expected to name Rep. Kirsten Gillibrand (D) to fill the Senate seat vacated by Secretary Clinton.

Retired Army Gen. Eric K. Shinseki took the oath of office Jan.21 as the nation's seventh Secretary of Veterans Affairs, assuming the leadership of the Department of Veterans Affairs following his Jan. 20 confirmation by the Senate.

The Senate Jan. 21 unanimously approved Arne Duncan as Education Secretary. Duncan had previously served as Chief Executive Officer of the Chicago Public Schools.