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Washington Highlights: October 30, 2009

House Democrats Unveil $894 Billion Health Care Reform Legislation

House Democratic leaders Oct. 29 released an $894 billion health care reform package that is expected to expand coverage to an additional 36 million individuals. The Affordable Health Care for America Act (H.R. 3962) is largely a merged version of legislation passed earlier this year by the three House committees with jurisdiction over health care reform (Ways and Means, Energy and Commerce, and Education and Labor).

The nearly 2000-page bill establishes an individual insurance mandate and significantly expands Medicaid eligibility. It includes a public health insurance option that would reimburse providers using negotiated rates. According to the Congressional Budget Office (CBO), the cost of H.R. 3962 is partly offset by $426 billion in reductions to Medicare, Medicaid, and other federal health programs. The legislation does not include provisions to avert the scheduled 21.5 percent reduction in 2010 Medicare physician payment updates.

At a rally to unveil H.R. 3962, Speaker Nancy Pelosi (D-Calif.) stated that "the drive for health care reform is moving forward." According to Rules Committee Chair Louise Slaughter (D-N.Y.), the full House will begin debate on H.R. 3962 during the week of Nov. 2. Majority Leader Steny Hoyer (D-Md.) expects floor debate to begin with consideration of a manager's amendment to H.R. 3962.

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

AAMC Reiterates Health Reform Positions in Letter to Senate Leaders

AAMC Chief Advocacy Officer Atul Grover, M.D., Ph.D., Oct. 27 sent a letter to Senate leaders to reiterate AAMC positions on key provisions in the health reform legislation (S.1796) of greatest interest to the nation's medical schools and teaching hospitals. The letter was sent to Senate Majority Leader Harry Reid (D-Nev.), Senate Minority Leader Mitch McConnell (R- Ky.); Senate Finance Committee Chair Max Baucus (D-Mont.) and Ranking Member Charles Grassley (R-Iowa); and Senate Health, Education, Labor, and Pensions Committee Chair Tom Harkin (D-Iowa) and Ranking Member Michael Enzi (R-Wyo.).

The AAMC recommendations include:

  • Immediate and significant expansion of the physician workforce;
  • Reform the problematic physician payment methodology and avert the future cuts;
  • Careful review and identification of the many drivers of variations (e.g., income, race) in Medicare spending and resource use;
  • Support for provisions reauthorizing the existing health professions education and training programs under Title VII;
  • The adoption of the Health Care Innovation Zones (HIZs) Pilot Program (H.R. 3664) to health care reform legislation; and
  • Belief that the Medicare Payment Advisory Commission (MedPAC) already serves as an adequate independent advisory body to Congress.

The letters express the AAMC's "great appreciation for your continued commitment to achieving comprehensive health care reform that benefits all Americans." The AAMC pledges "continued collaboration" and will work to "assure enactment of policies that improve the health and security of our nation."

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

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

AAMC and CAMC Brief Capitol Hill on Healthcare Innovation Zones

The AAMC and the Congressional Academic Medicine Caucus (CAMC) co-hosted an Oct. 27 briefing titled "Accelerating Healthcare Delivery System Reform through Healthcare Innovation Zones." The briefing, which focused on the transformative potential of Healthcare Innovation Zones (HIZs) as part of national health care reform, was the first event for the caucus a new, bipartisan group of congressional members dedicated to maintaining and strengthening the nation's medical schools and teaching hospitals [see Washington Highlights, Oct. 9]. AAMC President and CEO Darrell G. Kirch, M.D., led the discussion, which also included Gordon Alexander, M.D., president of the University of Minnesota Medical Center, and Beth Felder, J.D., director of federal relations for Johns Hopkins University School of Medicine.

The HIZ concept, introduced in Rep. Allyson Schwartz (D-Pa.)'s Healthcare Innovation Zone Pilot Act of 2009 (H.R. 3664), would reduce costs and improve health outcomes by allowing multiple providers and payers to partner and create health care solutions tailored to their communities. "Most of what we as a nation have been thinking about is how to insure more people," said Dr. Kirch. "When we talk about reforming health care delivery, we sometimes seem to be hoping more than implementing. But we want to motivate those on the front lines to use the tools of innovation in a purposeful way. That's what healthcare innovation zones are all about."

The briefing highlighted several academic medical centers that are already testing new approaches to health care delivery. The University of Minnesota Medical Center, part of Fairview Health Services, is implementing 12 "care packages" that provide central treatment locations for patients with various chronic conditions and help reduce costs. "We need to fundamentally change payment structures, and find new solutions for care," said Dr. Alexander. "In the olden days, it was all about costs, but now, it's also about innovation."

Additionally, the HIZ model would allow institutions and providers to not only test and expand new care models, but also to track results and measure outcomes. According to Ms. Felder, current Johns Hopkins innovations have improved health outcomes and reduced costs for approximately 160,000 Medicaid patients. "It would provide academic medical centers around the country with an opportunity to take what they know and design a system that works best for their community," said Ms. Felder. "We can then study and evaluate what we do and share that knowledge."

H.R. 3644 is not currently included in the pending House or Senate health care reform proposals.

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

Congress Approves Second Funding Extension

Congress Oct. 29 approved a second stop-gap funding measure to keep the federal government running until Dec. 18. The funding extension -- known as a continuing resolution (CR) -- is included in the House-Senate conference agreement on the FY 2010 Interior-Environment appropriations bill (H.R. 2996), which the House passed 247-178 and the Senate passed 72-28. President Obama is expected to sign the measure before Oct. 31, the expiration date for the initial CR that Congress passed as part of the Legislative Branch spending bill (H.R. 2918) [see Washington Highlights, Oct. 2].

Like its predecessor, the second CR funds most of the federal government at FY 2009 levels for its duration but continues temporary increases for the Veterans Health Administration and the Census that were included in the initial funding extension.

The Interior-Environment bill would be the fifth of the 12 regular FY 2010 appropriations bills that Congress has cleared for the president. The House has passed all 12 bills while the Senate has approved seven. Among the five bills awaiting Senate action is Labor-HHS-Education (H.R. 3293).

Congressional strategy for dealing with the remaining bills most likely will involve wrapping them into a small omnibus package, which some on Capitol Hill are calling a "minibus." Democratic leaders reportedly are considering using the Defense spending bill (H.R. 3326) as the legislative vehicle to move the minibus, but any of the remaining spending measures could be used for that purpose.

A further complication is the need for Congress to approve an increase in the federal debt limit. The House automatically passed, without a roll call vote, a $925 billion debt limit increase when it adopted the FY 2010 budget resolution (S.Con.Res. 13). Senate Democratic leaders are said to be considering attaching the debt limit increase to the Defense bill to avoid a straight up-or-down vote on the debt. However, Senator Judd Gregg (N.H.), the ranking Republican on the Budget Committee, has said he will raise a point of order to strike the debt limit increase language because it was not included in either the House or Senate passed Defense bill. Democrats would need 60 votes to waive such a point of order.

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

AAMC, Higher Education Associations Renew Support for Patent Reform Bill

A coalition of higher education associations that includes the AAMC has reiterated support for the Patent Reform Act of 2009 (S. 515), which would be the first major reform of the patent system in more than a half century. The associations' position was stated in an Oct. 22 letter to Secretary of Commerce Gary Locke, in response to the secretary's own correspondence expressing the administration's views on S. 515. The Senate Judiciary Committee approved S. the bill for full Senate consideration on April 2 [see Washington Highlights, April 3].

In expressing support for the legislation, the coalition -- including the AAMC, the Association of American Universities (AAU), the American Council on Education (ACE), the Association of Public and Land-grant Universities (APLU), the Association of University Technology Managers (AUTM), and the Council on Governmental Relations (COGR) -- noted that the legislation balances concerns and interests across many sectors, and also addresses concerns raised earlier by universities. This balance is reflected in compromise provisions on the allocation of damages from patent infringement. The bill also specifically addresses university interests, such as by inclusion of a "grace period" permitting inventors to publish their discoveries quickly without invalidating subsequent patent applications (a provision critically important to faculty scientists).

The associations expressed hope that, if the bill moves forward in the Senate and in negotiation with the House, further modifications might be made S. 515 relating to establishment of a mechanism by which outside parties could challenge patent awards within the Patent and Trademark Office. Specifically, the associations recommend language that would make help prevent using post-grant opposition process would to harass inventors with repetitive challenges. The coalition of university associations also strongly opposed any further expansion within the legislation of "prior user rights", which allow industries to avoid penalties for infringement if they had previously used a technology newly covered by someone else's patent. The associations argue that the Constitution's intent for the patent system is to promote disclosure society of inventions and discoveries, and not to grant immunity to trade secrets, as would be conferred by expansion of prior user rights.

Information:
Stephen Heinig, Lead Science Policy Analyst
AAMC Biomedical Health Sciences Research
sheinig@aamc.org
(202) 828-0488

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

Congress Postpones SBIR Reauthorization to January

The House Oct. 28 and Senate Oct. 29 voted to extend temporarily through Jan. 31, 2010, the current authorization for the Small Business Innovation Research (SBIR) program and other programs under the Small Business Act and the Small Business Investment Act of 1958. The extension (S. 1929) the third since the programs were scheduled to expire July 31 allows lawmakers to continue working on legislation that permanently reauthorizes the programs past Oct. 31 [see Washington Highlights, Oct. 2].

Among other items, House- and Senate-passed reauthorization bills differ on whether to increase the percentage of their budgets that major federal research agencies, including the National Institutes of Health, 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. AAMC opposes increasing the allocation [see Washington Highlights, June 26]. The House bill (H.R. 2965) does not increase the set-aside.

The Senate Oct. 26 had approved a version of S. 1929 that extended the current authorization through April 30, 2010. House lawmakers shortened the extension before approving the bill and sending it back to the Senate for a final vote.

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

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

GAO Releases Report on the Medicare per Capita Method for Profiling Physicians

The Government Accountability Office (GAO) Oct. 26 released a report titled "Medicare: Per Capita Method Can Be Used to Profile Physicians and Provide Feedback on Resource Use." The report, at the request of House Ways and Means Health Subcommittee Chair Pete Stark (D-Calif.), examines the "use of per capita method to profile physicians based on their patients' level of resource use, and discusses the development and influence of feedback reports."

The report found that despite high patient turnover, specialist physicians displayed considerable stability in resource use suggesting per capita resource use is an acceptable method because "it reflects distinct patterns of a physician's resource use" and not the population seen by the physician. The report also found with regard to the per capita method, "patients of high resource use physicians used more institutional services than patients of low resource use physicians."

The Centers for Medicare and Medicaid Services (CMS), agreeing with the findings of the report, affirmed its "commitment to developing meaningful, actionable, and fair measurement tools for physician resource use that, along with quality measures, will provide comprehensive assessment of performance."

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

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

HIT Policy Committee to Develop Strategic Plan; Standards Committee Announces Blog

The Health Information Technology (HIT) Policy Committee Oct. 27 announced that it will begin to create the Federal Health Information Technology Strategic Plan required by the American Recovery and Reinvestment Act (ARRA, P.L. 111-5). The committee stated that its work on the strategic plan will be in addition to its ongoing work on defining "meaningful use" criteria for 2013 and 2015 and developing other HIT-related recommendations. The committee intends to continue its work through the following five workgroups: Meaningful Use; Adoption of HIT / Electronic Health Records (EHRs); Privacy and Security; Nationwide Health Information Network and Health Information Exchanges; and Strategic Planning.

During its Oct. 27 and 28 meeting, the committee also heard testimony on the use of registries and quality measures, the unique concerns of specialists, small providers, and providers meeting the needs of the underserved in becoming "meaningful users" of EHRs. Testimony addressed a wide variety of stakeholder perspectives on "meaningful use" issues and included discussions about how to define meaningful use criteria for specialists, how to define and set goals for registries, and how best to encourage all providers to take advantage of the ARRA HIT incentives.

The HIT Standards Committee's Implementation Workgroup Oct. 29 also heard testimony from stakeholders regarding "real world" standards implementation experiences. The testimony focused on lessons learned about standards implementation both inside and outside of the healthcare industry and on challenges in collecting data and calculating performance measures. Aneesh Chopra, chair of the workgroup, encouraged the public to contribute to this discussion through the new Federal Advisory Committee Act (FACA) blog.

The meeting agendas and all written testimony from the presentations are available on the HIT Policy Committee and Standards Committee Web sites. More detailed summaries of the meetings will be posted to the AAMC HIT Web page.

Information:
Lori K. Mihalich-Levin, J.D., Senior Policy Analyst
AAMC Health Care Affairs
lmlevin@aamc.org
(202) 828-0599

Senate Confirms Benjamin as U.S. Surgeon General

The Senate Oct. 29 approved by a voice vote Regina Benjamin, M.D., M.B.A., as U.S. Surgeon General. 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.

On the Agenda in Washington

Nov. 2-3: VA Research Advisory Committee on Gulf War Veterans' Illnesses Meeting
8 a.m.; Room 230, Department of Veterans Affairs, 810 Vermont Ave, N.W.
The Department of Veterans Affairs Advisory Committee on Gulf War Veterans' Illnesses will meet to review VA program activities related to Gulf War Veterans' illnesses and updates on relevant scientific research published since the last committee meeting.

Nov. 2-3: Meeting of the CDC/HRSA Advisory Committee on HIV and STD Prevention and Treatment
8 a.m.; Hyatt Regency Bethesda, 7400 Wisconsin Ave., (One Bethesda Metro Center), Bethesda, Md.
The Center for Disease Control and Prevention (CDC)/Health Resources and Services Administration (HRSA) Advisory Committee on HIV and STD Prevention and Treatment will meet to discuss issues pertaining to HIV/STD/HCV prevention, treatment and care in Federally Qualified Health Centers; biomedical approaches to HIV prevention; and the role of surveillance in informing CDC and HRSA activities.

Nov. 5: Senate Veterans Affairs Committee hearing on VA-Indian Health Service Cooperation
10 a.m.; 418 Senate Russell Building
The full Senate Veterans Affairs Committee is scheduled to hold a hearing on cooperation between the Department of Veterans Affairs (VA) and the Indian Health Service (IHS).