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Washington Highlights: September 25, 2009

Finance Committee Takes Up Health Care Reform Legislation

The Senate Finance Committee Sept. 22 began its mark-up of a health care reform package, the America's Healthy Future Act. The legislation (a "modified mark") is an amended version of language initially released Sept. 16 by Committee Chair Max Baucus (D-Mont.) [see Washington Highlights, Sept. 18]. With the number of amendments exceeding 500, the mark-up continued through Sept. 25, with the committee scheduled to resume deliberations on Sept. 29.

The modified mark alters the chairman's mark language that would redistribute unused residency training slots. Specifically, the modified mark narrows from 80 to 65 percent the portion of unused residency slots that would be eligible for redistribution. Additionally, the modified mark narrows the eligibility criteria established in the initial chairman's mark by reducing the number of institutions that qualify for the redistributed slots. The modified mark directs the redistributed slots to hospitals in the 10 states having the fewest residents per population and greatest population living in a health professions shortage area (HPSA).

Also, the modified mark establishes "teaching health centers" (THCs). The language allows community-based ambulatory patient care centers (e.g., community health centers, rural health centers, and health care centers for the homeless) to receive Medicare payments for direct graduate medical education expenses and "other indirect expenses associated with operating approved graduate medical residency training programs." The modified mark also authorizes $125 million in teaching health center development grants for fiscal years 2010 ($25 million), 2011 ($50 million), and 2012 ($50 million). The grants, made available under Title VII of the Public Health Service Act, could be used to establish or expand primary care residency programs at THCs.

The committee Sept. 24 adopted (15-3) an amendment (#10) offered by Sen. John Rockefeller (D-W.Va.), which clarifies the role, membership, and authority of the Medicare commission established in the chairman's mark [see Washington Highlights, Sept. 18]. Under the Rockefeller amendment, starting in 2014, the Commission would be required to implement "policies that successfully reduce cost growth in Medicare by at least 1.5 percent annually," but could not increase beneficiary premiums or deductibles. If such proposals do not achieve the 1.5 percent decrease, the Secretary of Health and Human Services would have the authority to "make up the balance of the decrease … through a cumulative reducing in provider reimbursement."

In anticipation of the mark-up, Sen. Orrin Hatch (R-Utah) filed an amendment (#121) that would add to the health care reform package AAMC-supported legislation (H.R. 3134) establishing a "health care innovation zone" (HIZ) demonstration project [see Washington Highlights, July 17]. An HIZ would comprise integrated health care delivery networks that include a teaching hospital, medical school, and a full spectrum of other inpatient, outpatient, post-acute, and preventative services for a designated geographic region. The amendment seeks to support innovation through new patient-centered models of care. The amendment also allows an HIZ to request and receive exemptions from regulatory and other barriers to provider alignment and integration.

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

Len Marquez, Director
AAMC Government Relations
lmarquez@aamc.org
(202) 862-6281

MedPAC Addresses Graduate Medical Education and Regional Variations

At its Sept. 17-18 meeting, the Medicare Payment Advisory Commission (MedPAC) discussed the Council on Graduate Medical Education (COGME) perspective on medical education, as well as results of a MedPAC analysis on regional variations in Medicare spending.

Russell Robertson, M.D., COGME Chair and Professor and Chair of Northwestern University's Department of Family and Community Medicine, highlighted the need to address the shortage of primary care physicians. According to Dr. Robertson's presentation, 65 percent of all physicians in the U.S. are specialists, while 35 percent are primary care physicians. He also discussed reasons for the imbalance in the proportion of generalists to specialists including lack of funding for graduate medical education (GME) and the perception, among medical students, that primary care does not result in the same levels of both professional satisfaction and income as other specialties.

Following the presentation, the commissioners discussed ways to increase the level of professional satisfaction in primary care specialties and decrease the income gap between generalists and specialists. According to Dr. Robertson, the medical home model holds promise, but any changes will take time to make an impact. Many commissioners expressed interest in how regulatory barriers can be removed to encourage training in nonhospital sites, especially since most primary care occurs in nonhospital settings rather than the hospital.

The commissioners also were interested in how and why some hospitals continue to fund residency positions that exceed their caps and discussed ways in which changes in GME policies could lead to an increase in the number of primary care residents and a decrease in the number of subspecialty residents.

The medical education discussion was a continuation of MedPAC's effort to explore ways Medicare can improve medical education to better address the needs of the population. MedPAC began to take a closer look at this issue in October 2008 and included a chapter on medical education in its June 2009 Report to the Congress.

In light of the increased interest by the Administration and Congress in achieving Medicare savings by reducing regional variation in spending highlighted by the Dartmouth Atlas study, MedPAC conducted its own analysis. The analysis shows that the magnitude of regional variation in service use is lower than the magnitude of regional variation in spending, indicating that regional differences are less dramatic than would be suggested by looking at raw spending. Another key finding is that both the high-use and low-use regions exhibit high growth.

MedPAC intends to produce a policy brief on this issue by mid-October rather than develop a chapter in its annual reports to the Congress. The purpose of the policy brief is to examine service use variations resulting from differences in practice patterns and care decisions and help policymakers focus on factors that can help control program spending.

Information:

Mark Lyles, Director
AAMC Health Care Affairs
mlyles@aamc.org
(202) 828-0493

Diana Mayes, Specialist
AAMC Health Care Affairs
dmayes@aamc.org
(202) 828-0498

House Approves Continuing Resolution with Legislative Branch Spending Bill

The House Sept. 25 approved a continuing resolution (CR) to keep most of the federal government operating at FY 2009 funding levels through the end of October, while Congress completes work on the 12 annual spending bills. House and Senate negotiators on the FY 2010 Legislative Branch spending bill (H.R. 2918) attached the stopgap funding measure to the bill before approving the conference agreement Sept. 24.

To date, the House has approved all its spending bills, while the Senate has approved five; without the continuing resolution, funding for federal programs will expire Sept. 30. The measure provides temporary increases for the Veterans Health Administration and the Census during the one-month extension.

Republicans object to pairing the CR with the legislative branch spending bill.

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

House Approves SBIR Extension

The House Sept. 23 approved another short-term extension of the Small Business Innovation Research (SBIR) program. The measure (H.R. 3614) extends the programs through Oct. 31, while House and Senate negotiators continue to work on legislation to reauthorize the programs.

House-passed and Senate-passed reauthorization bills differ on whether to increase the percentage of their budgets that major federal research agencies must devote to the SBIR program. The Senate-passed bill (S. 1233) includes a provision to increase the allocation for the SBIR program from 2.5 percent to 3.5 percent of any federal agency budget that provides more than $100 million for research, including the National Institutes of Health. AAMC opposes increasing the allocation [see Washington Highlights, June 26].

Originally scheduled to expire July 31, Congress approved a two-month extension of the program on July 29 [see Washington Highlights, July 31].

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

NIH Begins Stem Cell Line Approval Process

The National Institutes of Health (NIH) Sept. 21 announced it is now accepting requests from owners of human embryonic stem cell lines for approval to use in NIH-funded research. The final NIH Stem Cell Guidelines issued on July 7 outlined the approval process [see Washington Highlights, July 10].

Following the submission of requisite documentation, the NIH staff and a new working group of the Advisory Committee to the Director will recommend whether existing stem cell lines should be made eligible. The review largely will center on the informed consent process used during the derivation process.

NIH also announced the members of the new Working Group for Human Embryonic Stem Cell Eligibility Review. Jeffrey R. Botkin, M.D., M.P.H., professor of pediatrics at University of Utah's School of Medicine, will chair the panel. He is also the associate vice president for research integrity at the University of Utah. The other members of the working group include representatives from several AAMC member institutions:

  • Dena S. Davis, J.D., Ph.D., professor of law, Cleveland-Marshall College of Law, Cleveland State University;
  • Pamela B. Davis, M.D., Ph.D., dean of the School of Medicine, Case Western Reserve University;
  • David A. Grainger, M.D., M.P.H., director, Center for Reproductive Medicine; associate dean for research; professor, Department of Obstetrics and Gynecology; director, Division of Reproductive Endocrinology; University of Kansas School of Medicine-Wichita;
  • Richard P. Lifton, M.D., Ph.D., chair, Department of Genetics; professor of genetics, medicine and molecular biophysics and biochemistry, Yale School of Medicine; investigator, Howard Hughes Medical Institute;
  • Bernard Lo, M.D., professor of medicine; director, Program in Medical Ethics; Department of Medicine, University of California, San Francisco;
  • Terry Magnuson, Ph.D., professor and chair of the Department of Genetics of the School of Medicine, University of North Carolina at Chapel Hill;
  • Jeffrey C. Murray, M.D., professor of neonatology and genetics; professor of biological sciences, dentistry, and epidemiology in the College of Public Health; Department of Pediatrics, University of Iowa Children's Hospital; and
  • Carlos Pavão, M.P.A., training and technical specialist, Education Development Center. Inc.; member, NIH Director's Council of Public Representatives.

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

House Panel Holds Additional Health Reform Markup

The House Committee on Energy and Commerce Sept. 23 held a supplemental markup to consider a limited number of additional amendments to the America's Affordable Health Choices Act of 2009 (H.R. 3200), in accordance with an agreement reached by Chair Henry Waxman (D-Calif.) and Ranking Member Joe Barton (R-Texas) before the committee approved a modified version of the bill July 31 [see Washington Highlights, July 31].

The committee agreed to a motion offered by Chairman Emeritus John Dingell (D-Mich.) to send the additional adopted amendments to the House Rules Committee for consideration as it works to combine versions of H.R. 3200 approved by the House Committees on Ways and Means, Education and Labor, and Energy and Commerce.

The committee also adopted a manager's package of amendments offered by Chairman Waxman. Among other provisions, the amendment authorizes grants and contracts for a health sciences training program to prepare secondary school students for careers in health professions. Another amendment, offered by Reps. Barton, Gene Green (D-Texas), and Michael Burgess (R-Texas) would require information transparency and plan disclosure among states on the actual cost of Medicare and Medicaid procedures. The committee adopted the amendment, 51-0.

Information:

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

Len Marquez, Director
AAMC Government Relations
lmarquez@aamc.org
(202) 862-6281

House, Senate Panels Hold Hearings on Biosafety Laboratories

The Government Accountability Office (GAO) Sept. 22 testified before three Congressional committees regarding security practices and oversight of laboratories that deal with dangerous pathogens.

Nancy Kingsbury, Ph.D., GAO managing director of applied research and methods, testified before the House Energy and Commerce Subcommittee on Oversight and Investigations and the Senate Judiciary Subcommittee on Terrorism and Homeland Security. As noted in the GAO's Sept. 21 report on high containment laboratories, Dr. Kingsbury testified that no single federal agency is responsible for overseeing the labs and that a national strategy could help ensure that the number of labs does not exceed the nation's need.

Meanwhile, the Senate Homeland Security and Governmental Affairs Committee heard testimony from Gregory D. Kutz, GAO managing director of forensic audits and special investigations. The testimony focused on updates to previous reports on perimeter security at biosafety level 4 (BSL-4) labs. Committee Chair Joe Lieberman (ID-Conn.) and Ranking Member Susan Collins (R-Maine) Sept. 8 introduced legislation that would expand significantly the Department of Homeland Security's role in regulating such research [see Washington Highlights, Sept. 11].

Information:

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

On the Hill…

Massachusetts Gov. Deval Patrick (D) Sept. 24 named Paul Kirk, a former Democratic National Committee chair and a former aide to the late Sen. Edward Kennedy (D-Mass.), to fill Sen. Kennedy's seat until a permanent replacement is named in a Jan. 19 special election.

Rep. John M. McHugh (R-N.Y.) Sept. 21 resigned from Congress, shortly before he was sworn in at the Pentagon as the new secretary of the Army. In his 9th term, Rep. McHugh served on the House Committee on Oversight and Government Reform and as Ranking Member of the Armed Services Committee.

On the Agenda in Washington

Sept. 28-29: NSF Advisory Committee Meeting
8:30 a.m.; National Science Foundation, 4201 Wilson Blvd., Arlington Va.
The National Science Foundation (NSF) Advisory Committee will meet to discuss activities and initiatives for the coming year for programs of the Office of International Science and Engineering.

Sept. 29-30: National Emergency Medical Services Advisory Council Meeting
8 a.m.; Crystal Gateway Marriott, 1700 Jefferson Davis Highway, Arlington, Va.
National Emergency Medical Services Advisory Council of the National Highway Traffic Safety Administration holds a two-day meeting that includes committee reports, a discussion on emerging issues and an H1N1 "swine flu" virus panel.

Sept. 29: Senate Small Business and Entrepreneurship Full Committee Hearing
11 a.m.; 562 Senate Dirksen Building
The Senate Small Business and Entrepreneurship Committee is scheduled to hold a hearing titled "Reform Done Right: Sensible Health Care Solutions for America's Small Businesses."

Sept. 30: The Senate Veterans Affairs Full Committee Hearing
9:30 a.m.; 418 Senate Russell Building
The Senate Committee on Veterans Affairs Committee will hold a hearing on the Department of Veterans Affairs (VA) contracts for health services.

Sept. 30: Rescheduled Senate HELP Committee Ryan White AIDS Act Reauthorization Markup
10 a.m.; 430 Senate Dirksen Building
The full Senate Committee on Health, Education, Labor and Pensions will hold an executive session to markup the Ryan White AIDS Act Reauthorization.

Sept. 30: Senate Special Aging Committee Hearing
11 a.m.; 106 Senate Dirksen Building
The Senate Special Aging Committee will hold a hearing on how successful health systems keep costs low and quality high.

Oct. 1-2: Emerging Technology and Research Advisory Committee Meeting
8:30 a.m.; 4830 Commerce Department, 1401 Constitution Ave. NW
The Emerging Technology and Research Advisory Committee of the Bureau of Industry and Security, Commerce Department, will hold a partially closed meeting to discuss "deemed" export control methodology.