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Washington Highlights: July 2, 2009

AAMC Urges CMS to Rescind Capital IME Elimination in Inpatient Comment Letter

In its June 30 comment letter on the Medicare hospital inpatient proposed rule, the AAMC urged the Centers for Medicare and Medicaid Services (CMS) to rescind a regulation that would eliminate capital indirect medical education (IME) payments scheduled to occur on Oct. 1. The elimination would result in approximately $380 million in lost payments to teaching hospitals annually.

In other areas, the AAMC also urged CMS to reduce a proposed 1.9 percent cut to the update factor (as a result of perceived coding improvements). The letter also urges CMS not to finalize a reduction to the "labor-related" share to which a hospital's area wage index applies. Reducing the labor-related share would result in lower payments to most teaching hospitals because of their higher wage index values. The AAMC also opposed the proposal to increase the outlier payment threshold which would reduce outlier payments for teaching hospitals that treat high-cost patients.

On the graduate medical education (GME) front, the AAMC urged CMS to rescind a purported "clarification" of when a residency program is considered "new" when a nonteaching hospital begins training residents and is in the process of establishing its Medicare resident cap level. The letter states that not only is the "clarification" ambiguous, but also that the current regulatory definition - which allows the accrediting bodies to determine when a program is new - is appropriate and should be endorsed by CMS in the final rule.

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

AAMC Submits Comments to HIT Policy Committee on "Meaningful Use" Matrix

The AAMC June 25 submitted to the Office of the National Coordinator for Health Information Technology (ONC) a comment letter urging the Health Information Technology Policy Committee to refine its proposed definition of "meaningful use" and to consider the essential role teaching hospitals and faculty practices will play in achieving widespread use of electronic health records (EHRs). At the full committee's June 16 meeting, the committee's "meaningful use" workgroup released and solicited comments on a draft document defining what it means to be a "meaningful user" of an EHR [see Washington Highlights, June 19].

In the comment letter, the AAMC indicates its support for "the establishment of initial reporting measures that are achievable by large numbers of hospitals and physicians by 2011 or 2012; increasing the requirements incrementally over time; and ensuring that all measures are consistent with quality reporting programs already established by CMS." The AAMC also emphasizes that requirements related to qualifying as a "meaningful user" of EHRs must not create impediments to comparative effectiveness and other research.

The letter expresses concern about many ambiguities in the measures listed in the proposed matrix, including questions about how the measures are defined, their applicability, and the ability of hospitals and eligible professionals to collect and report data required for each measure.

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

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

CMS Releases 2010 Physician Fee Schedule

The Centers for Medicare and Medicaid Services (CMS) July 1 released its proposed rule for the Medicare 2010 Physician Fee Schedule. CMS estimates the update for physician services will decrease by 21.5 percent from calendar year 2009. The current update formula is based on a statutory formula that calculates targets for physician spending. The formula has produced negative updates since 2002; however, from 2004-2009, Congress approved a series of legislation that prevented the cuts from being enacted. While CMS cannot modify the formula, it is proposing to use its authority to remove physician administered drugs from the update calculation. This action does not impact 2010 rates, but does reduce the number of years physicians are projected to receive a negative update.

The rule also makes several suggestions to modify payments, including a proposal to no longer pay for consultations and to use new practice expense data. CMS estimates the payment changes, without considering the negative update, may shift total allowed charges to specialties by as much as negative 24 percent to positive 8 percent.

The rule makes several suggested changes to the Physician Quality Reporting Initiative (PQRI) and the Electronic Prescribing Incentive Program, such as including a group reporting option and allowing data submission from electronic health records.

The 60-day comment period ends on Aug. 31. The AAMC will be submitting comments.

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

Mary Patton, Senior Specialist
AAMC Health Care Affairs
mpatton@aamc.org
(202) 862-6297

HHS Council, IOM Release Comparative Effectiveness Reports

Two advisory bodies released reports on comparative effectiveness research (CER) authorized under the American Recovery and Reinvestment Act (ARRA, P.L. 111-5).

The Federal Coordinating Council for Comparative Effectiveness Research (FCCCER) June 29 published its "Report to the President and Congress." The report provides the definition of CER that the Department of Health and Human Services (HHS) has said will guide allocation of $700 million in ARRA CER funds for the Agency for Healthcare Research and Quality (AHRQ) and the National Institutes of Health (NIH). The council also fulfilled its ARRA-mandated responsibilities to describe current Federal activities in CER and to make recommendations on how the HHS Secretary should spend an additional $400 million in ARRA funding to accelerate the development and dissemination of CER.

The report advises that "the primary investment for this funding should be data infrastructure" and notes that these efforts in data infrastructure could include "linking current data sources to enable answering CER questions, development of distributed electronic data networks and patient registries, and partnerships with the private sector." The AAMC testified before the council April 14 [see Washington Highlights, April 17].

Following the FCCCER report, the Institute of Medicine (IOM) Committee on Comparative Effectiveness Research Prioritization June 30 published its ARRA-authorized report to establish a list of research questions that would have the highest priority for study. The IOM study also will inform use of the aforementioned $400 million in ARRA funds under the HHS Secretary's discretion. Prepared with extensive stakeholder input (such as public testimony from multiple stakeholders, including AAMC, and input from 1,758 respondents to a web questionnaire) the report offers a list of 100 priority topics relevant to CER. Included among the top 25 are the following:

  • Compare the effectiveness of treatment strategies for atrial fibrillation including surgery, catheter ablation, and pharmacologic treatment;

  • Compare the effectiveness of primary prevention methods, such as exercise and balance training, versus clinical treatments in preventing falls in older adults;

  • Compare the effectiveness of upper endoscopy utilization and frequency for patients with gastroesophageal reflux disease;

  • Compare the effectiveness of dissemination and translation techniques to facilitate the use of CER by patients, clinicians, payers, and others; and,

  • Compare the effectiveness of comprehensive care coordination programs, such as the medical home, and usual care in managing children and adults with severe chronic disease.

By July 30 the HHS Secretary (jointly with the AHRQ and NIH Directors) is to provide the House and Senate Committees on Appropriations a fiscal year 2009 operating plan for all the ARRA funds allocated for CER.

Information:
Eugene Rich, M.D., Scholar in Residence
AAMC Biomedical and Health Sciences Research
grich@aamc.org
(202) 828-0549

On the Hill

Incumbent Sen. Norm Coleman (R-Minn.) June 30 conceded to Democrat Al Franken after the Minnesota Supreme Court unanimously ruled Mr. Franken should be certified the winner of the contested Senate election. The seat has been vacant since the beginning of the 111th Congress, as the pair requested recounts of Nov. 4 election results that were separated by a few hundred votes. The Democratic victory brings the number of total Democrats in the Senate to 58; including two Independents who caucus with Democrats, the party can avert Republican filibusters with a 60-vote majority.

On the Agenda in Washington

July 6: Senate HELP Committee to Mark Up Health Care Reform Legislation
Time TBD, 325 Russell Senate Office Building
The Senate Health, Education, Labor, and Pensions (HELP) Committee is scheduled to continue considering the "Affordable Health Choices Act."

July 6: Senate Military Construction and Veterans Affairs Appropriations Subcommittee to Mark Up FY 2010 Bill
Time TBD, Location TBD
The Senate Military Construction and Veterans Affairs Appropriations Subcommittee is tentatively scheduled to mark-up draft FY 2010 appropriations for the Department of Veterans Affairs (VA) with full committee consideration scheduled for July 7.

July 10: House Labor-HHS-Education Appropriations Subcommittee to Mark Up FY 2010 Bill
Time 9 a.m., Location 2358-C Rayburn Office Building
The House Labor-HHS-Education Appropriations Subcommittee is scheduled to consider its FY 2010 spending bill, with full committee consideration tentatively scheduled for July 14.

July 14-15: ONC HIT Policy Committee's Certification/Adoption Workgroup to Hear Testimony on the Certification Process
Time 9 a.m. - 4 p.m. on July 14, 9-10 a.m. on July 15; Park Hyatt Washington Hotel, 24th and M Streets NW
The Certification/Adoption Workgroup is scheduled to hear testimony from stakeholder groups, including purchasers, vendors, and users, on the certification process.

July 16: ONC HIT Policy Committee to Discuss Definition of "Meaningful Use"
Time 10 a.m. - 2 p.m., Park Hyatt Washington Hotel, 24th and M Streets NW
The HIT Policy Committee will discuss the draft definition of "meaningful use" as modified since its June meeting.