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Washington Highlights: October 9, 2009

Reps. Schwartz and Tiberi Establish Congressional Academic Medicine Caucus

Reps. Allyson Schwartz (D-Pa.) and Patrick Tiberi (R-Ohio) Oct. 6 formally registered the new Congressional Academic Medicine Caucus (CAMC) in the House of Representatives. Reps. Schwartz and Tiberi will serve as co-chairs of the new bipartisan caucus which will focus on maintaining and strengthening the nation's medical schools and teaching hospitals. When establishing the new caucus, Reps. Schwartz and Tiberi wrote, "The new caucus will also strive to educate other members on the unique health care, research, and training missions of teaching hospitals and medical schools."

In an Oct. 6 press release, AAMC President and CEO Darrell G. Kirch, M.D., thanked Reps. Schwartz and Tiberi for "ensuring that academic medicine continues to have a strong voice and the support to continue to provide the best that American medicine has to offer." Dr. Kirch also stressed the importance of academic medicine saying "academic medicine is where patients, their families and other health care providers turn for hope. With the establishment of this caucus, the nation's medical schools and teaching hospitals will have a strong voice in Congress and the support they need to continue to provide the high-quality care that all Americans deserve, and pioneer the innovations that transform medicine and improve health. We look forward to working with Reps. Schwartz and Tiberi and all the members of this important new caucus."

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

Finance Committee Moves Closer to Final Vote on Health Care Reform

The Senate Finance Committee has scheduled an Oct. 13 vote on its health care reform package, the "America's Healthy Future Act of 2009" (see Washington Highlights, Oct. 2). In preparation for the vote, Committee Chair Max Baucus (D-Mont.) Oct. 7 released a preliminary Congressional Budget Office (CBO) analysis of the legislation that incorporates amendments adopted during the committee's two-week mark-up.

According to the CBO, the $829 billion cost of the Finance package is fully offset and reduces the federal deficit by $81 billion over ten years. Its coverage provisions will insure an estimated 94 percent of all legal residents (91 percent of all residents) over the same period. Approximately 25 million people will remain uninsured.

Upon release of the CBO analysis, Chairman Baucus stated that "Our balanced approach to health reform has paid off yet again." He added that the "legislation is a smart investment on the federal balance sheet" and "an even smarter investment for American families, businesses, and our economy."

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

Senate Panel Questions NIH on Recovery Act Funds for SBIR

The Senate Committee on Small Business and Entrepreneurship Oct. 5 held a hearing on the impact of the American Recovery and Reinvestment Act (ARRA, P.L. 111-5) on the small business community. One of the issues the hearing addressed was the Recovery Act's exemption of the National Institutes of Health (NIH) from the statutory requirements for funding the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.

Federal agencies with extramural research and development (R&D) budgets over $100 million are required to administer SBIR programs using an annual set-aside of 2.5 percent for small companies to conduct innovative research or R&D that has potential for commercialization and public benefit. Federal agencies with extramural R&D budgets over $1 billion are required to administer STTR programs using an annual set-aside of 0.30 percent. The Recovery Act exempted the $10.4 billion it provided to NIH from being included in the SBIR and STTR set-asides.

In her opening statement, Committee Chair Mary Landrieu (D-La.) noted this exemption "should not have made it in and needs to be changed." She said, "This provision cheated small businesses out of as much as $230 million in work, and it directly counters the goals of the Recovery Act to create high-paying jobs, spur innovation and boost America's competitiveness. The SBIR and STTR programs have a proven track record in these areas."

While Chairwoman Landrieu acknowledged, "NIH has made some efforts to include small businesses in their Recovery Act spending since we started raising the issue last spring," she added, "However, their efforts are small and have fallen well short of restoring the full amount of spending to the SBIR and STTR programs." She also noted, "The anger from the small business community over this exemption has not waned, and I am very interested to hear today about realistic ways to help NIH make up the $230 million that should have gone to SBIR and STTR."

Sally Rockey, Ph.D., NIH Acting Deputy Director for Extramural Research, told the committee that NIH has "developed a multifaceted strategy in implementing the ARRA program and small businesses were participants throughout the range of Recovery Act funding approaches." She added, "By including qualified small businesses in almost every ARRA funding opportunity offered by NIH, we were able to assure that small businesses had opportunities where they traditionally may not have participated in the past."

Dr. Rockey testified that, as of September 30, NIH has dedicated almost $150 million of ARRA funds to small businesses; approximately $97 million of stimulus dollars to meritorious small business concerns for FY 2009 and about $50 million in additional stimulus funds for second-year commitments of the FY 2009 awards. She added that additional Recovery Act funds will be expended in FY 2010 for new programs that target the small business community, along with potentially additional supplement and competing revision awards.

Dr. Rockey also described two new NIH programs specifically targeted at small business. The Biomedical Research, Development, and Growth to Spur the Acceleration of New Technologies (BRDG-SPAN) pilot program is intended to address the funding gap and provide a critical bridge across the so-called "Valley of Death" between discovery and commercialization for U.S. commercial enterprises. NIH received 742 applications for this program and anticipates completing the review process and making funding decisions in early FY 2010. NIH has designated at least $30 million for this program.

The Small Business Catalyst Awards for Accelerating Innovative Research (Catalyst) program is designed to encourage high-risk, high-reward ideas with high commercial potential to lead to products that will improve public health and generate significant value and economic stimulus. Applications from small business concerns and entrepreneurs of exceptional creativity without a history of prior NIH funding are especially encouraged for the Catalyst program, which utilizes the SBIR Phase I funding mechanism. This program received 689 applications, and funding decisions are expected in early FY 2010. NIH has designated at least $5 million for this program.

In response to a question from Chairwoman Landrieu about declining numbers of SBIR applications, Dr. Rockey said that Phase I applications have fallen from a peak of 6,141 in 2003 to 3,312 in 2008. Dr. Rockey expressed concern about the declining applications and said NIH is committed to increasing outreach to the small business community.

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

House Chairs Object to Harm Standard in Breach Notification Rule

Leaders of the House Committees on Energy and Commerce and Ways and Means sent an Oct. 1 letter urging the Department of Health and Human Services (HHS) to revise its interim final rule on notification requirements for breaches of unsecured protected health information [see Washington Highlights, Aug. 21].

The letter objects to HHS's proposal that covered entities and business associates must perform a risk assessment to determine if an impermissible use or disclosure of protected health information triggers breach notification requirements added to the HIPAA Privacy Rule through the American Recovery and Reinvestment Act (ARRA, P.L. 111-5). According to the legislators, the HHS approach "is not consistent with Congressional intent" because when the legislation was crafted, "Members considered the comments they received, the practices of States, and ultimately decided against inclusion of a harm standard."

Signed by House Energy and Commerce Committee Chair Henry Waxman (D-Calif.), Ranking Member Joe Barton (R-Texas), Chairman Emeritus John Dingell (D-Mich.), Health Subcommittee Chair Frank Pallone (D-N.J.), Ways and Means Committee Chair Charles Rangel (D-N.Y.) and Ways and Means Health Subcommittee Chair Pete Stark (D-Calif.), the letter urges HHS "to revise or repeal the harm standard provision included in its interim final rule at the soonest appropriate opportunity."

In a Sept. 24 comment letter on the rule, the AAMC praised HHS for its efforts to implement the "breach notification requirement in a way that fulfills the goals of the legislation while recognizing the burden that covered entities face in complying with it." The AAMC letter also described the risk assessment as a "reasonable approach" that allows covered entities to gauge the harm that may result from a breach before fulfilling the notification requirements.

Comments on the interim final rule are due Oct. 23 and should be labeled with reference number RIN 0991-AB56.

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

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

HHS; Labor; Treasury Release Interim Final Rule to Implement GINA

The departments of Health and Human Services (HHS), Labor, and the Treasury Oct. 7 published in the Federal Register an interim final rule "Prohibiting Discrimination Based on Genetic Information in Health Insurance Coverage and Group Health Plans." The HHS Office for Civil Rights (OCR) also issued an Oct. 7 proposed rule modifying the HIPAA privacy rule to prohibit insurers from using or disclosing genetic information for underwriting purposes.

The interim final rule and the notice of proposed rulemaking implement Title I (Sections 101 through 103) of the Genetic Information Nondiscrimination Act of 2008 (GINA, P.L. 110-233). Under GINA, health plans and insurers in both group and individual health insurance markets are prohibited from:

  • Increasing premiums for the group or individual based on the results of individual genetic information;
  • Denying coverage based on genetic information;
  • Imposing pre-existing condition exclusions based on genetic information;
  • Requesting, requiring or buying genetic information for underwriting purposes or prior to and in connection with enrollment; and
  • Asking individuals or family members to undergo a genetic test.

The interim final rule will take effect on Dec. 7, 2009, and comments are due by Jan. 5, 2010. Comments on the OCR proposed rule must be submitted no later than Dec. 7.

Information:
Irena Tartakovsky, Senior Science Policy Analyst
AAMC Biomedical and Health Sciences Research
itartakovsky@aamc.org
(202) 862-6134

AAMC Mourns Passing of Dr. Kirschstein

Former Acting National Institutes of Health (NIH) Director Ruth L. Kirschstein, M.D., passed away late Oct. 6 at 82 after battling a long illness. In 1974, Dr. Kirschstein was the first woman to serve as director of an NIH institute ? the National Institute of General Medical Sciences (NIGMS) ? and served as acting NIH director on several occasions.

In an Oct. 7 statement, AAMC President and CEO Darrel G. Kirch noted "Dr. Ruth Kirschstein's death is a tremendous loss to patients, researchers, and all Americans who value medical research and the [NIH] … From her work on the Sabin vaccine to her many leadership positions at the NIH, she maintained a singular focus on scientific excellence, while demonstrating a steadfast devotion to public service. Dr. Kirschstein leaves a legacy that will continue to enrich the scientific enterprise and the health of the American people for generations to come."

Senate HELP Committee Approves President Obama's Surgeon General Nominee

The Senate Health Education Labor and Pensions (HELP) Committee Oct. 7 unanimously approved Regina Benjamin, M.D., M.B.A., as U.S. Surgeon General, clearing her nomination for the full Senate's consideration. President Barack Obama announced Dr. Benjamin as the Surgeon General-nominee on July 13 [see Washington Highlights, July 17].

In a July 14 statement, AAMC President and CEO Darrell G. Kirch, M.D., praised Dr. Benjamin as "a gifted physician with a strong commitment to caring for the underserved and community health." Dr. Kirch noted that "this nomination also appears to mark the first time that a former participant in the National Health Service Corps (NHSC) could serve as our chief public health official," observing that the program is "critically important to America's future health care needs."

Dr. Benjamin is founder and CEO of the Bayou Le Batre Rural Health Clinic in Alabama, a primary care facility that treats all patients regardless of their ability to pay. Her service within the medical community includes her work as the Associate Dean for Rural Health at the University of South Alabama College of Medicine and as Chair of the Federation of State Medical Boards of the United States.

The Senate has not scheduled a vote for Dr. Benjamin's confirmation.

On the Agenda in Washington

Oct. 13: Senate Finance Committee Markup of Health Care Revision
10 a.m.; 216 Senate Hart Building.
The full Senate Finance Committee is scheduled for a final vote to markup draft comprehensive health care revision legislation.

Oct. 14: HIT Standards Committee Meeting
9 a.m. - 3 p.m. ; The Omni Shoreham Hotel, 2500 Calvert Street, NW, Washington, DC.
The HIT Standards Committee will meet to discuss reports from its Clinical Operations, Clinical Quality, and Privacy and Security Workgroups and will take testimony from invited experts in the field of health information technology security.

Oct. 14: House VA Committee Oversight Hearing
10 a.m.; 334 Cannon House Office Building.
The full House Committee on Veterans Affairs is scheduled to hold an oversight hearing on the "State of the Department of Veterans Affairs."

Oct. 14: House Education and Labor Subcommittee on Higher Education, Lifelong Learning, and Competitiveness Hearing
10 a.m., 2175 Rayburn House Office Building.
Higher Education, Lifelong Learning, and Competitiveness Subcommittee of House Education and Labor Committee will hold a hearing on efforts to ensure student eligibility requirements for federal aid.

Oct. 20: HIT Policy Committee Information Exchange Workgroup Meeting
9 a.m. -3 p.m.; The Omni Shoreham Hotel, 2500 Calvert Street, NW, Washington, DC.
HIT Policy Committee Meeting's Information Exchange Workgroup will meet to hear testimony from invited experts and stakeholders in the area of electronic exchange of laboratory information.

Oct. 27-28: HIT Policy Committee
10 a.m.; The Omni Shoreham Hotel, 2500 Calvert Street, NW, Washington, DC.
The full HIT Policy Committee will meet to hear presentations from the Meaningful Use, Certification/Adoption, and Information Exchange Workgroups and will hear testimony from experts on the mapping of core Meaningful Use objectives and existing measures to medical specialties, small practices, and small hospitals.