AAMC Home   Tomorrow's Doctors Tomorrow's Cures
  Home  Government Affairs   Newsroom   Meetings   Publications Shopping Cart   Site Map    

Washington Highlights: June 27, 2008

Congress Passes Bill Extending Medicaid Moratorium

The Senate June 26 voted 92-6 to adopt the House-passed FY 2008 emergency supplemental appropriations bill (H.R. 2642), which includes AAMC-supported provisions prohibiting until April 1, 2009, any CMS action related to the Medicaid GME proposed rule, the Medicaid final rule on cost limits/units of government (the "IGT rule"), and four other Medicaid regulations. The spending bill also includes the House-passed language providing $400 million in FY 2008 science funding, including $150 million for the National Institutes of Health [see Washington Highlights, June 20]. In a June 19 Statement of Administration Policy, President Bush indicated that he will sign the supplemental appropriations bill into law.

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

Senate, Administration Reject Legislation Averting Medicare Physician Payment Cuts

Senate Majority Leader Harry Reid (D-Nev.) June 26 attempted to invoke cloture and adopt a House-passed Medicare package (H.R. 6331) that would avert the 10.6 percent cut in Medicare physician payments scheduled for July 1. Unable to secure the three-fifths majority necessary to prevent a filibuster, Sen. Reid withdrew the bill from consideration. The Senate is expected to leave for its July 4 recess without taking further action to prevent Medicare cuts.

The House June 24 passed H.R. 6331, 355-59. The legislation, which was introduced by Ways and Means Committee Chair Charles Rangel (D-N.Y.) and Energy and Commerce Committee Chair John D. Dingell (D-Mich.), would extend the current Medicare physician payment update (0.5 percent) through Dec. 31, 2008 and establish a 1.1 percent update for calendar year 2009. It would also extend the availability of incentive payments for physician quality reporting through 2010. The cost of the bill is partially offset by a phase-out of IME payments made to Medicare Advantage plans. The cuts do not affect the IME payments made directly to teaching hospitals that treat Medicare Advantage beneficiaries.

In anticipation of the House and Senate votes, the AAMC June 23 sent letters to the leadership of the Finance, Ways and Means, and Energy and Commerce Committees, urging "swift passage" of physician payment relief. The Administration June 24, and again June 26, threatened to veto H.R. 6331, largely because it contained significant payment reductions for Medicare Advantage plans.

Reacting to the failed cloture vote, Sen. Reid stated that "seniors and the health care providers who care for them have only Senate Republicans to blame when Medicare payments are cut and other key protections expire." He added that "Senate Republicans insist on standing with President Bush to protect insurance companies at the expense of patients and providers. This is nothing short of putting politics above the seniors and people with disabilities who depend on Medicare."House roll call vote posted at: http://clerk.house.gov/evs/2008/roll443.xml

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

Travis W. Crytzer, Legislative Associate
AAMC Health Care Affairs/Government Relations
tcrytzer@aamc.org
(202) 828-0418

Senate Panel Approves HHS Funding

The Senate Appropriations Committee June 26 approved its FY 2009 Labor-HHS-Education appropriations bill on a 26-3 vote. The $153.1 billion measure provides $30.255 billion for the NIH, an increase of $1.025 billion (3.5 percent) over the FY 2008 funding level and the President's FY 2009 budget request. Senator Tom Harkin (D-Iowa), chair of the Labor-HHS-Education Appropriations Subcommittee, July 24 released a statement following the subcommittee's passage of the bill that says, "The Subcommittee's increase will allow the NIH to award the highest number of new research project grants in its history and keep up with the biomedical inflation rate for the first time in six years."

The committee adopted an amendment by Senators Harkin and Wayne Allard (R-Colo.) that would require NIH to monitor more closely possible conflicts of interest among extramural grantees. The amendment calls for the Secretary of Health and Human Services to issue a proposed rule, with an opportunity for public comment, within 6 months of the spending bill's enactment.

The bill also provides $135 million for the National Health Service Corps, an increase of $11.5 million (9.3 percent) over FY 2008 and $14 million more than the President's budget. The bill freezes the Agency for Healthcare Research and Quality (AHRQ) at the FY 2008 level of $334.6 million.

The committee has not yet filed the report and has released only limited details on the funding levels in the bill. The bill is unlikely to make it to the Senate Floor this summer. Senate Majority Whip Richard Durbin (D-Ill.) told reporters June 26 that the Defense appropriations bill would be the only one that Majority Leader Harry Reid (D-Nev.) will bring to the Senate Floor in July.

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

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

HHS Funding Bill Stalls in House Committee

The House Appropriations Committee June 26 abruptly cut short consideration of its Labor-HHS bill after Republicans tried to force votes on amendments related to expansion of domestic oil production. Efforts by Republicans to force consideration of the Interior bill to address rising fuel prices caused chaos and Democrats opted to vote to adjourn.

Concerned about continued Republican efforts to raise the energy issue, House Appropriations Committee Chair David Obey (D-Wis.) has threatened to shut down the appropriations process. He told reporters June 26, "I think we probably had our last meeting of the year, and this will probably go to a continuing resolution."

The bill, which was approved by the House Labor-HHS-Education Appropriations Subcommittee on June 19, proposes $30.380 billion for NIH, an increase of $1.150 billion (3.9 percent) over FY 2008 and the President's budget, and $125 million more than the Senate bill. (see related story)

The bill rejects the Administration's proposal to eliminate funding for Title VII health professions education and provides $244.1 million, a $50.2 million (25.9 percent) increase over last year. Within that total, the Title VII Centers of Excellence (COE) and Health Careers Opportunity Program (HCOP) each receive $28.4 million, increases of $15.7 million (122 percent) and $18.6 million (189 percent) respectively. The bill provides $36.9 million for the Title VII Area Health Education Centers (AHEC), an $8.7 million (30.9 percent) increase.

The bill also provides $310 million for children's graduate medical education, an increase of $8.4 million (2.8 percent). For the National Health Service Corps, the bill provides $135 million, an increase of $11.5 million (9.3 percent) over FY 2008 and equal to the Senate bill. The bill also boosts the Agency for Healthcare Research and Quality (AHRQ), providing $375 million in program level funding. The funding level represents a $40.4 million (12.1 percent) increase over FY 2008 and includes $50 million designated for clinical effectiveness research, a $20 million (66.7 percent) increase.

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

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

House Committee Approves VA Appropriations

The House Committee on Appropriations June 24 approved its FY 2009 Military Construction and Veterans Affairs spending bill. According to a Committee press release, the bill includes "$30.9 billion, $1 billion above the President's request and $2.8 billion [6.2 percent] above 2008" for VA Medical Services. The bill includes $5 billion for VA Medical Facilities, an increase of $900 million (22 percent) over FY 2008 and $339 million over the President's request. For VA Research, the Committee approved $500 million, a $20 million (4.2 percent) increase over FY 2008 and $58 million more than the President's request. The Senate is expected to consider its VA spending bill when they return from the July 4 recess.

The Friends of VA Medical Care and Health Research (FOVA) recommend $555 million for VA research in FY 2009, a $75 million (15.6 percent) increase over FY 2008. The AAMC is a member of the FOVA executive committee.

Information:
Matthew Shick, Legislative Analyst
AAMC Government Relations
mshick@aamc.org
(202) 828-0525

House Panel Approves NSF Increase

The House Appropriations Committee June 25 approved an FY 2009 spending bill that reportedly matches the President's requested $6.854 billion for the National Science Foundation (NSF). The funding level represents a $789.1 million (13 percent) increase over the funding provided in the FY 2008 Consolidated Appropriations Act. According to a statement released by the House Appropriations Committee, "this increase would put NSF on track to see its funding doubled over ten years."

The bill reportedly provides $50 million more than the President's requested $790 million for NSF education activities, a $115 million (15.9 percent) increase over FY 2008. The House Commerce-Justice-Science Appropriations Subcommittee approved the bill June 12.

The Senate Appropriations Committee approved its version of the bill (S. 3182, S.Rept. 110-397) June 19 [see Washington Highlights, June 20], also providing $6.854 billion for NSF. Within that total, the Senate bill provides $5.527 billion for research and related activities, a $772.5 million (16.2 percent) increase as recommended by the President. The Senate bill also fulfills the President's request of $790.4 million for science education activities.

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

Energy and Commerce Subcommittee Approves HIT, Privacy Measure

The House Energy and Commerce Subcommittee on Health June 25 approved health information technology (HIT) and privacy legislation with the understanding that some of the bill's privacy provisions will be refined before full committee consideration.

The "Protecting Records, Optimizing Treatment, and Easing Communication through Healthcare Technology Act of 2008," or the PRO(TECH)T Act (H.R. 6357), was introduced June 24 by Committee Chair John Dingell (D-Mich.), Committee Ranking Member Joe Barton (R-Texas), Subcommittee Chair Frank Pallone (D-N.J.), and Subcommittee Ranking Member Nathan Deal (R-Ga.). The measure aims to promote HIT adoption through improved federal HIT standards, incentives to implement HIT, and new information privacy and security protections.

Three amendments were offered and withdrawn at the mark-up, including two by Rep. Mike Rogers (R-Mich.) that sought to avoid "unintended consequences" that would result from "adding another layer" to existing privacy protections in the Health Insurance Portability and Accountability Act (HIPAA). Chairman Pallone agreed to discuss the proposed amendments with Rep. Rogers, but cautioned that he could not promise to change certain provisions since they had been carefully negotiated with Rep. Barton. The third amendment, offered by Rep. Henry Waxman (D-Calif.), would have enabled state attorneys general to enforce civil penalties for HIPAA violations and other privacy breaches.

The subcommittee had held a June 4 hearing to consider an earlier draft of the measure [see Washington Highlights, June 6]. According to a summary prepared by committee staff, the revised PRO(TECH)T Act responds to comments from various stakeholders.

In response to Rep. Rogers' urging that the subcommittee engage in a dialogue with physicians, hospitals and others that would be required to implement the bill's provisions, Chairman Pallone noted that the subcommittee will continue to reach out to the full range of stakeholders.

A section-by-section analysis of the bill, a summary of changes, and an archived webcast of the mark-up are available on the Energy and Commerce Committee website.

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

Congress Approves Temporary Extension of HEA

The Senate June 23 and the House June 25 approved a "clean" one-month extension (S. 3180) of the Higher Education Act (HEA), making no policy changes but allowing uninterrupted administration of the programs authorized under the law. Congress last completed a full reauthorization of HEA in 1998.

The AAMC May 15 sent a letter to the House Committee on Education and Labor and the Senate Committee on Health, Education, Labor, and Pensions regarding ongoing conference of the "College Opportunity and Affordability Act of 2007" (H.R. 4137) and the "Higher Education Amendments of 2007" (S.1642). The letter comments on provisions of the HEA reauthorization bills that could affect medical education, including loan repayment, financial aid, institutional grant programs, and accreditation [see Washington Highlights, May 16]

Information:
Matthew Shick, Legislative Analyst
AAMC Government Relations
mshick@aamc.org
(202) 828-0525

Correction: The June 20 Washington Highlights article on the FY 2008 emergency supplemental should have stated the Medicaid moratorium does not apply to the proposed rule affecting certain outpatient clinic and hospital services.