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Washington Highlights: February 20, 2009

Hospital Associations Comment on Physician Self-Referral Exception

The AAMC, the American Hospital Association, and the Federation of American Hospitals submitted a Feb. 17 letter to the Center for Medicare and Medicaid Services (CMS) on the proposed exceptions to the physician self-referral regulation for shared savings and incentive payment programs.

The exceptions would cover hospital incentives to physicians for such things as achieving quality improvement goals and pay for performance. While some of these arrangements may fit into current exceptions, such as the employment exception, many of them do not. The letter expresses concerns that the complexity and limitations of the CMS proposal make it unlikely that most providers would use the exception. The letter makes specific recommendations for an exception that balances the requirements of the Medicare program and the needs for hospitals to retain flexibility when working with physicians to structure arrangements to meet quality, patient safety and efficiency goals.

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

Hospital Associations Submit Letter to the HHS on Gainsharing Special Bulletin

The AAMC, the American Hospital Association, and the Federation of American Hospitals Feb. 17 sent a letter to the Department of Health and Human Services Office of the Inspector General (OIG) requesting that it withdraw the 1999 Special Advisory Bulletin concerning "Gainsharing Arrangements and Civil Monetary Penalties for Hospital Payment to Physicians to Reduce or Limit Services to Beneficiaries."

The letter further requests that the OIG promulgate a safe harbor for incentive payment and shared savings arrangements under the Antikickback statute. The letter states that "the many current and well-founded practices that foster quality improvement and more efficient delivery of care should support the OIG's revisiting of its interpretation of what Congress was trying to achieve [in the Civil Monetary Penalties statute]."

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


Department of Education Appoints COSFA Chair to Rulemaking Committee

The Department of Education has named Carrie Steere-Salazar to represent the AAMC and "4-year public institutions" on the upcoming negotiated rulemaking committee, "Team I--Loans-Lender/General Loan Issues." Ms. Steere-Salazar is director of Student Financial Services at the University of California, San Francisco, School of Medicine and chair of the AAMC Committee on Student Financial Assistance (COSFA).

The committee is charged with developing regulations for the "Higher Education Opportunity Act" (P.L. 110-315) [see Washington Highlights, Aug. 1, 2008], the Higher Education Act reauthorization package signed by the President Aug. 14, 2008. Among other issues, Negotiating Team I will address the following:

  • Borrower eligibility for deferment;
  • Changes to prohibited inducement provisions governing FFEL lenders and guaranty agencies;
  • FEL Consolidation Loan-borrower eligibility;
  • Definitions (Education loan, Private education loan, Lender, Preferred lender arrangement);
  • Required borrower notifications and lender disclosures or certifications;
  • Financial and economic literacy information for rehabilitated borrowers; and
  • Consumer education information provided by guaranty agencies.

The department tentatively has scheduled three negotiated rulemaking sessions in Washington, DC, for Feb. 23-26, March 30-April 1, and May 4-6.

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

Representatives Introduce Multiple Stem Cell-Related Bills

Reps. Diane DeGette (R-Colo.) and Mike Castle (D-Del.) Feb. 4 introduced the "Stem Cell Research Enhancement Act of 2009" (H.R. 873), which would lift the Bush Administration's restriction on federal funding for research using embryonic stem cells created after Aug. 9, 2001. The bill would allow in vitro fertilization clinics to donate embryos for research that otherwise would be discarded. This legislation is similar to legislation previously vetoed by President Bush [see Washington Highlights, June 22, 2007].

A second bill, the "Stem Cell Research Improvement Act of 2009" (H.R. 872), also would allow discarded embryos to be used for research, regardless of the date of creation. However, the bill also includes a more explicit ethical framework in the statute as well as a various reporting requirements [see Washington Highlights, Oct. 3, 2008].

In addition, Rep. J. Randy Forbes (R-Va.), an opponent of embryonic stem cell research, introduced the "Patients First Act of 2009" (H.R. 877), which would prohibit embryonic stem cell research while encouraging the use of adult stem cells.

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

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

House, Senate VA Chairs Introduce Bills for Advance Funding of Medical Care

House Veterans Affairs (VA) Committee Chair Bob Filner (D-Calif.) and Senate VA Committee Chair Daniel Akaka (D-Hawaii) Feb. 12 reintroduced legislation (H.R. 1016, S.423) to provide "advance appropriations" for veterans' health care. The House bill has 10 cosponsors while the Senate bill carries 18.

The "Veterans Health Care Budget Reform and Transparency Act of 2009" would authorize Congress to approve VA medical care appropriations one year in advance of the start of each fiscal year. The medical care appropriations include Medical Services, Medical Support and Compliance, and Medical Facilities.

Unlike proposals to convert VA health care to a mandatory funding program, an advance appropriation would not create PAYGO concerns since VA health care funding would remain discretionary. In a press statement, Chairman Filner noted, "an advance appropriation would provide VA with up to a year in which to plan how to deliver the most efficient and effective care to an increasing number of veterans with increasingly complex medical conditions."

The new legislation also would task the Governmental Accountability Office (GAO) with studying and reporting to Congress for the next three years on VA's budget forecasting model and estimates.

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