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Washington Highlights: April 17, 2009

Draft Stem Cell Funding Guidelines Issued by NIH for Public Comment

The National Institutes of Health (NIH) April 17 published draft guidelines for federal funding of stem cell research by the NIH. President Obama's March 9 Executive Order lifting the Bush Administration's restrictions on human embryonic stem cell research ordered NIH to finalize such guidance within 120 days (July 7). This draft guidance is open for public comment for 30 days after its publication in the Federal Register, which is expected the week of April 20. Such a schedule should allow NIH to meet its July 7 mandate.

The guidelines limit federal funding to human embryonic stem cell lines derived from embryos created by in vitro fertilization (IVF) for reproductive purposes and that are in excess of clinical need. Stem cell lines derived from somatic cell nuclear transfer (SCNT), parthanogenisis, or via the IVF process if the embryo was created for research purposes will not be eligible for federal funding. Acting NIH Director Raynard Kington, M.D., Ph.D., said that NIH was unaware of any existing stem cell lines created by SCNT or from embryos expressly created for research. He said that NIH has "heard reports" of 700 or more human embryonic stem cell lines in circulation and that many of the lines will meet the requirements of the new federal guidelines. Federal funding of derivation activities remain prohibited by legislative fiat.

In addition, NIH will not fund research using otherwise eligible stem cell lines if the cells are introduced into non-human primate blastocysts or if the cells may have contributed to the germ line.

Institutions receiving funding for stem cell research would be required to provide an assurance that such research meets various procedural and donor informed consent requirements, as stated in the guidance. NIH reports it has not made a decision whether an NIH stem cell registry or the NIH-funded stem cell bank will be maintained. The question of whether the stem cell lines that were eligible for funding under the Bush policy will qualify under the new proposed NIH guidance is not clear. Such lines will need to be assessed following the issue of the final guidelines.

NIH also issued a notice providing interim guidance on the funding of on-going NIH funded stem cell research, as well as proposed stem cell research, before the NIH guidance is finalized on or before July 7.

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

Congress to Return from Spring District Work Period

The Senate will return from a two-week district work period April 20 and resume consideration the "Fraud Enforcement and Recovery Act of 2009" (S.386) [see Washington Highlights, March 6]. Majority Leader Harry Reid (D-Nev.) April 2 filed cloture on the motion to proceed to S.386, which if passed will end debate and require a vote on the bill. The House will return from the recess April 21, but a schedule has not been announced. Additionally, budget conferees are expected to meet to finish work on a final conference agreement for the House- and Senate-passed budget resolutions (H.Con.Res.85 and S.Con.Res.13) [see Washington Highlights, April 3].

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

AAMC Testifies Before CER Coordinating Council

The AAMC April 14 testified before the Federal Coordinating Council for Comparative Effectiveness Research, the new advisory body established by the American Recovery and Reinvestment Act (P.L. 111-5) [see Washington Highlights, March 20]. AAMC Scholar-in-Residence Eugene Rich, M.D., presented the statement to the panel during a public listening session designed to receive stakeholder input on comparative effectiveness research (CER) priorities and the council's activities.

Praising Congress for the $1.1 billion included for CER in the Recovery Act, Dr. Rich identified five AAMC priorities for investments in such research, including:

  • Investments to strengthen research methods to support CER, given promising new sources of data - such as electronic health records and expanded clinical registries - beyond randomized controlled clinical trials;
  • Sustained investment in clinical and translational research training and CER workforce development;
  • Investments to develop and maintain the national CER infrastructure, including support for expanded networks for evidence review, new clinical research databases, interdisciplinary research teams and academic-community partnerships;
  • Further investments in research to inform clinical care and delivery system reforms; and
  • Developing and using CER "through means that are synergistic with continued discovery of clinical innovations through biomedical science."

The council is charged with advising federal agencies and others on coordinating comparative effectiveness and related health services research. The council also will issue recommendations regarding priorities for spending $400 million provided through ARRA for CER to be allocated at the discretion of the Secretary of Health and Human Services.

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

AAMC, Other Groups Urge Investment in Pandemic Preparedness, Advanced Research and Development

The AAMC joined 24 other organizations of the Working Group on Pandemic Influenza Preparedness on an April 8 letter urging House and Senate appropriators to support increased investment in pandemic preparedness and advanced research and development activities. Addressed to the chairs and ranking members of the House and Senate Labor-HHS-Education Appropriations Subcommittees, the letter recommends that Congress complete the previous administration's request for $870 million in "no-year" funding for medical countermeasures, as well as provide ongoing funding for preparedness activities at the Centers for Disease Control and Prevention, National Institutes of Health, Food and Drug Administration, and Office of the Secretary of Health and Human Services. Additionally, the letter supports $350 million for states and localities to develop and implement pandemic response plans and to build medical surge capacity.

The groups also recommend that the committees provide at least $500 million for the Biomedical Advanced Research and Development Authority (BARDA) in FY 2010. Noting that "BARDA's budget must be substantial to allow for flexible decision-making and risk-taking and its portfolio diverse to encompass a range of conventional 'one bug, one drug' approaches to more novel, high-risk projects," the letter requests the funds be made avilable for two fiscal years.

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

MedPAC Continues Medical Education Discussion

The Medicare Payment Advisory Commission (MedPAC) April 8 continued the discussion it began at its March meeting on the role of medical education in supporting long-term delivery system reforms [see Washington Highlights, March 20]. The outcome of these discussions will be a chapter in the commission's June report.

MedPAC's June report will provide an overview of the educational process for physicians, including a discussion of the accreditation processes for both undergraduate and graduate medical education. The chapter also will include a summary of semi-structured interviews with 26 internal medicine program directors that were conducted by the RAND Corporation on MedPAC's behalf. The interviews focused on whether internal medicine program curricula address topics that MedPAC believes are important to support overall delivery system reform, such as systems-based practice that focuses on care coordination, cost awareness, and patient safety. There will be no recommendations in the chapter.

At the meeting, commissioners also discussed potential future work that MedPAC staff could pursue. Suggestions included examining how to increase residency training in nonhospital sites and how to improve resident's knowledge and skills for delivery system reforms. A key issue was how Medicare might use its leverage, through graduate medical education and indirect medical education payments, to improve education that supports more effective delivery of care in the future. For example, should Medicare "reward" institutions that are leaders in innovative care delivery which would translate into a better clinical educational environment for both medical residents and students? Commissioners agreed that the issue of Medicare's role in supporting medical education will be a focus of future meetings.

Other topics discussed at the April meeting included:

  • Accountable care organizations;
  • A mandated report on Medicare Advantage payments;
  • A mandated report on quality comparisons between Medicare fee-for-service and managed care; and
  • The impact of physician self-referral on use of imaging services within an episode.

The next public meeting of MedPAC is September 17-18.

The presentation slides for all of the sessions, as well as a transcript of the meeting is available on the MedPAC website.

Information:
Karen Fisher, Sr. Director, Health Care Affairs
AAMC Health Care Affairs
kfisher@aamc.org
(202) 862-6140

HHS Secretary-designate Sebelius Responds to Senate Panel Inquiries

The Senate Finance Committee has posted the responses of President Obama's nominee for Secretary of Health and Human Services (HHS), Gov. Kathleen Sebelius (D-Kan.), to questions from committee members that followed an April 2 confirmation hearing. The questions and responses for the record addressed issues of interest to medical schools and teaching hospitals including Medicare, Medicaid, health care reform, the National Institutes of Health (NIH), conflicts of interest, and health professions training.

In response to a question from Senator Stabenow (D-Mich.) regarding the Medicare disproportionate share hospital (DSH) program and its impact on acute care, Secretary-designate Sebelius recognized the concern and said, "We must ensure that the Medicare DSH program fulfills its goal of supporting true safety-net providers. If confirmed, I pledge to carefully review this issue and keep you informed of my findings." In response to a question regarding the scheduled physician payment cuts, Gov. Sebelius stated, "We [the Administration] believe that Medicare's payment system should support more primary care and a 21 percent cut in physician payments is simply unsustainable. I look forward to working with you to improve the Medicare payment system to promote broader reform goals."

Senate Finance Committee Chair Max Baucus (D-Mont.) asked Secretary-designate Sebelius if she supported the creation of a Federal Health Board and how she would ensure accountability of such an entity if confirmed as the HHS Secretary. She acknowledged that better alignment of the health system will improve quality of care and lower costs and she "looks forward to working with Members of Congress on developing this [Federal Health Board] and other ideas about how to make the health system more effective and better for patients."

Responding to a question from Senate Finance Committee Ranking Member Charles Grassley (R-Iowa) regarding conflicts of interest, Secretary-designate Sebelius described an Advanced Notice of Proposed Rulemaking (ANPRM) that will seek public comment in the following areas:

  • Expanding the scope of the regulation and disclosure of interests (including questions addressing a new requirement for grantees to provide details regarding the nature of financial conflicts of interest and how they are managed, reduced, or eliminated)
  • Definition of ?significant financial interest
  • Identification and Management of Conflicts by Institutions
  • Assuring Institutional Compliance
  • Requiring Institution to provide additional information to the PHS
  • Institutional Conflict of Interest (institutional conflict of interest is an area of increasing concerning that currently is not addressed by the Federal regulations)

Gov. Sebelius also stressed the importance of NIH research and increased funding in response to numerous questions, noting "After a five year doubling initiated in the Clinton Administration, NIH has been essentially flat-funded since 2003. This has produced a 17 percent loss of buying power since 2003, and an acute fall in the success rates for grant applicants, now as low as 10 percent for many NIH Institutes." She continued in another response, "If confirmed, I will work to strengthen NIH, with leadership that focuses on the dual objectives of addressing the health care challenges of our people and maintaining America's economic edge through innovation."

In response to another question from Ranking Member Grassley regarding health care provider shortages, Secretary-designate Sebelius acknowledged the need for a multi-faceted approach. In particular, she emphasized the role of health professions programs at the Health Resources and Services Administration, noting "First, we need to expand support for workforce training programs, including Title VII, Title VIII, and National Health Service Corps programs, which incentivize students to pursue careers in the primary care health professions."

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

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

Nuclear Regulatory Commission Decides on Cesium Chloride Irradiators

The Nuclear Regulatory Commission (NRC) April 15 directed the agency's staff to continue enhancing the security of cesium chloride radiation sources, while encouraging research and further technological developments for alternative chemical forms of cesium-137 chloride. The isotope is used widely in research and clinical applications. Proponents of banning the use of cesium chloride are concerned that an intentional release into the environment would be effectively impossible to remediate. However, the commission agreed with staff's analysis that near-term replacement of cesium chloride sources in existing blood, research, and calibration irradiators is not practicable and would be harmful to the delivery of medical care, research, and emergency response capabilities. That evaluation was based on broad public input from many research and health care organizations, including the AAMC [see Washington Highlights, Oct. 10, 2008].

According to an April 15 NRC press release, NRC Chairman Dale E. Klein stated that "Banning or phasing-out cesium chloride radiation sources at this time - before a replacement form or other technology is available - would be counterproductive, because society would lose the many benefits these sources provide in medicine, industry and research." The commission noted that security controls already implemented over the past several years have significantly improved the security of these sources. However, it directed the staff to continue exploring new ways to improve their security further. Those efforts are to include working with federal and state agencies to define criteria for a "dispersible source of concern" that could then be used to guide research efforts to develop an alternative form of cesium. The staff also was directed to develop a commission policy statement detailing the commission's emphasis on security of cesium chloride sources.

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

FTC Proposes Rule on Personal Health Records

The Federal Trade Commission (FTC) April 16 released a proposed Health Breach Notification rule that applies to vendors of personal health records (PHRs), PHR-related entities, and third party service providers. The FTC is expected to publish the proposed rule in the Federal Register. The rule would require notification of U.S. citizens and residents when a vendor of PHRs discovers a breach of security of unsecured identifiable information that is in a personal health record maintained or offered by the vendor. Notification of the FTC also would be required in the case of a breach. The rule will not apply to HIPAA-covered entities or to an entity's activities as a business associate of a HIPAA-covered entity. Promulgation of this rule was required by the "American Recovery and Reinvestment Act" (P.L. 111-5).

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