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Washington Highlights: September 11, 2009

Finance Chair Releases Framework for Reform, Plans Sept. Markup

Senate Finance Committee Chair Max Baucus (D-Mont.) Sept. 9 announced that he plans to release health care reform legislation during the week of Sept. 14, with a mark-up anticipated during the week of Sept. 21. In conjunction with the announcement, Chairman Baucus released a "framework" of the legislation, which is based on a bipartisan agreement negotiated with five of his colleagues: Sens. Kent Conrad (D-N.D.) Jeff Bingaman (D-N.M.), Charles Grassley (R-Iowa), Olympia Snowe (R-Maine), and Mike Enzi (R-Wyo.). Reportedly, the committee will move forward on the legislation regardless of whether the package has broad bipartisan support.

The conceptual framework outlines several issues of concern to medical schools and teaching hospitals, including the redistribution of unused residency training slots to new or existing primary care programs, the resolution of regulatory barriers related to training residents in outpatient settings, and the preservation of training slots at closed hospitals. Several proposals are similar to those included in the July 8 health reform agreement struck by the White House, Chairman Baucus, the American Hospital Association, and others [see Washington Highlights, July 10], including annual market basket reductions, Medicare and Medicaid Disproportionate Share Hospital (DSH) payment cuts that are linked to rates of coverage expansions, and reduced reimbursements for certain hospital readmissions.

For "certain high-cost and common conditions," the framework establishes a Medicare "payment penalty" for hospitals in the top 25th percentile for rates of "hospital acquired conditions" and also establishes Medicare hospital value-based payments that are tied to performance on quality measures. The framework directs hospitals to list publicly "standard charges" for all services and Medicare Diagnosis Related Groups (DRGs) and excludes new specialty hospitals from participation in the Medicare program.

Under the framework, the CY 2010 Medicare physician payment update is set at 0.5 percent. Unlike the health care reform bills passed in the House, the Baucus framework does not address the long-term future of physician payments. It establishes a 10 percent bonus payment for primary care providers and general surgeons who practice in health professions shortage areas; however, half of the bonus payments are financed by a 0.5 percent cut to all other physician services. In CY 2011, all Medicare physicians must participate in the Physician Quality Reporting Initiative. Additionally, the framework includes "penalties" for physicians who "utilize significantly more resources than their peers."

The Finance document creates an Independent Medicare Advisory Commission (IMAC) that would "submit proposals to Congress to extend Medicare solvency and improve quality in the Medicare program." Congress could "amend the proposal or pass an alternative proposal," but would have to identify an "equivalent amount of budgetary savings" elsewhere in the system. The framework also requires drug and medical device manufacturers to report payments that are made to physicians and teaching hospitals. The information would be made publicly available by the Secretary of Health and Human Services.

According to the framework document, Members may suggest "whole or partial counters to specific provisions." However, any modifications must be budget neutral.

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

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

Hoyer Says Continuing Resolution Likely

Democratic leaders have acknowledged they will fall short of their goal of completing all 12 FY 2010 spending bills by the Oct. 1 start of the federal fiscal year. Although the House passed all 12 bills prior to the August recess, only four bills have made it through the Senate floor, and none has gone to conference. Senate Majority Leader Harry Reid (D-Nev.) hopes to finish seven or eight spending bills by Sept. 30, while House Majority Leader Steny Hoyer (D-Md.) has said the House probably will have to pass a continuing resolution by the end of the month to keep the federal government running past Oct. 1.

One of the bills awaiting Senate consideration is the Labor-HHS-Education bill (H.R. 3293), which the House passed on July 24 [see Washington Highlights, July 24] and the Senate Appropriations Committee approved on July 30 [see Washington Highlights, July 31]. This bill traditionally is one that invokes considerable attention on the Senate floor, and this year promises more of the same, as the Republicans have vowed to offer a litany of amendments.

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

President Outlines Health Care Plan to Joint Session of Congress

President Barack Obama Sept. 9 addressed a joint session of Congress, outlining the framework of his administration's health reform plan and urging Republicans and progressive Democrats to "bring the best ideas of both parties together… to deliver on health care."

Citing a $900 billion price tag over 10 years for his plan, the president focused on three themes: "consumer protections for those with insurance, an exchange that allows individuals and small businesses to purchase affordable coverage, and a requirement that people who can afford insurance get insurance." Further, he emphasized the need to curb rising costs by finding savings within the health care system, pledging "spending cuts" if savings do not materialize and promoting the establishment of an independent commission of doctors and "medical experts" to identify "waste."

President Obama also acknowledged the role that medical malpractice reform could play in reducing defensive medicine practices and reining in costs; he directed Secretary of Health and Human Services Kathleen Sebelius to move forward with demonstration projects and a "range of ideas" proposed by the Bush administration.

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

Senators Introduce Bill on Biological and Other Weapons of Mass Destruction

Senate Homeland Security and Governmental Affairs Committee Chair Joe Lieberman (ID-Conn.) and Ranking Member Susan Collins (R-Maine) Sept. 8 introduced the Weapons of Mass Destruction Prevention and Preparedness Act of 2009 (S. 1649), intended to improve security, particularly around the use of dangerous pathogens.

The bill would represent a significant expansion of Homeland Security into the regulation of biomedical research, including academic research. The legislation creates a new designation of "tier I" agents among the pathogens on the current select agents list that are determined to be among the most dangerous and have the most potential to be used in a biological attack. The measure authorizes the Secretary of the Department of Homeland Security (DHS) to make the new designation in consultation with the Department of Health and Human Services (HHS). Currently, HHS and the Department of Agriculture oversee select agents regulations. Among other provisions, the bill also provides for further registration of laboratories or facilities, extended background checks, and better information sharing on biosecurity threats, and authorizes grants through DHS to academic institutions and others to improve security at labs that handle tier I agents.

The bill responds in part to the recommendations released in 2008 by the congressionally mandated Commission on the Prevention of Weapons of Mass Destruction Proliferation and Terrorism [see Washington Highlights, Dec. 12, 2008]. The commission concluded that a terrorist attack with WMDs is "more likely than not" to occur within five years. The commission further concluded that a biological attack is more likely than a nuclear attack, a conclusion reflected in the bill's focus on biological research laboratories and facilities.

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

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

Harkin to Chair Senate HELP Committee

Sen. Tom Harkin (D-Iowa) will succeed the late Sen. Ted Kennedy (D-Mass.) as chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, and will step down as chair of the Senate Committee on Agriculture, Nutrition, and Forestry. Sen. Blanche Lincoln (D-Ark.) will replace Sen. Harkin as chair of the agriculture committee.

Sen. Christopher Dodd (D-Conn.), the most senior member on the HELP Committee, opted to retain chairmanship of the Senate Committee on Banking, Housing, and Urban Affairs instead of leading the health committee. Sen. Dodd had served as acting chair of the HELP Committee in Sen. Kennedy's absence, as the committee considered its draft health care reform bill [see Washington Highlights, July 17]. The committee recently posted on its Web site an updated version of the draft bill that incorporates all of the amendments approved during the committee mark up.

Meanwhile, state lawmakers Sept. 9 held a public hearing about legislation to allow Massachusetts Gov. Deval Patrick (D) to appoint an interim senator until a permanent successor is elected in a Jan. 19 special election. The Massachusetts congressional delegation - comprised entirely of Democrats - wrote a letter supporting the proposal, and Sen. John Kerry (D-Mass.) and Rep. William Delahunt (D-Mass.) both testified in favor of the legislation. Gov. Patrick submitted written testimony supporting both the special election and the interim appointment, and pledged to ensure that a temporary appointee would not run in the special election. Republicans oppose the measure.

On the Agenda in Washington

Sept. 14: Senate Labor-HHS-Education Appropriations Subcommittee Hearing
2 p.m.; 138 Dirksen Building
The Senate Labor-HHS-Education Appropriations Subcommittee will hold a hearing on the health effects of cell phone use.

Sept. 14: AIDS Research Advisory Panel
1 p.m.; Natcher Building, Conference Rooms E1/E2, National Institutes of Health, Bethesda, Md.
The NIH National Institute of Allergy and Infectious Diseases' AIDS Research Advisory Committee will meet to hear reports from the division director and other staff.

Sept. 15: HIT Standards Committee Meeting
8:30 a.m. - 3 p.m.; Omni Shoreham Hotel, 2500 Calvert Street NW, Washington, DC
The Health Information Technology Standards Committee will meet to hear from the Committee's workgroups. The meeting will be webcast on the committee Web site.

Sept. 15: Interagency Autism Coordinating Committee's Services Subcommittee
1 p.m.; Building 1,Wilson Hall, 3rd floor, National Institutes of Health, Bethesda, Md.
The Services Subcommittee of the NIH's Interagency Autism Coordinating Committee (IACC) will meet to discuss the IACC Services town hall meeting on July 24, and to hear a presentation from subcommittee members about programs for children with autism supported by the Department of Education.

Sept. 15-16: Developments in and Plans for AIDS Vaccine Research
8:30 a.m.; Bethesda Marriott, 5151 Pooks Hill Road, Bethesda, Md.
The NIH National Institute of Allergy and Infectious Diseases' AIDS Research Advisory Committee will meet with the AIDS Vaccine Research Subcommittee to discuss recent developments in and plans for AIDS vaccine research, development, and clinical testing.

Sept. 15-16: National Vaccine Advisory Committee Meeting on Flu
Sept. 15: 9 a.m., Sept. 16: 8:30 a.m.; 800 Humphrey Building, 200 Independence Ave SW
The HHS National Vaccine Advisory Committee will hold a two-day meeting to discuss vaccine safety working group activity, the National Vaccine Plan, implementation plans for recent committee recommendations, financial considerations for adult immunizations, seasonal influenza, and H1N1 influenza response and vaccine development. Pre-registration is required; contact Andrea Krull at 202-690-5566 or nvpo@hhs.gov.

Sept. 17-18: Children's Health Care in Medicaid, Insurance Programs
8 a.m.; Holiday Inn Capitol Hill, 550 C St. SW
The AHRQ National Advisory Council for Healthcare Research and Quality's Subcommittee on Quality Measures for Children's Healthcare in Medicaid and Children's Health Insurance Programs will meet over two days.

Sept. 17-18: National Health Promotion, Disease Prevention Objectives for 2020
9 a.m.; 800 Humphrey Building, 200 Independence Ave SW
The HHS Advisory Committee on National Health Promotion and Disease Prevention Objectives for 2020 will meet over two days to develop recommendations regarding implementation, evidence-based actions, data, and priorities, and the application of the social deteriments of health. Contact Emmeline Ochiai at 240-453-8259.

Sept. 18: HIT Policy Committee Meeting
10 a.m. - 3 p.m.; Omni Shoreham Hotel, 2500 Calvert Street NW, Washington, DC
The Health Information Technology Policy Committee will meet and take testimony regarding privacy and security issues. The meeting will be webcast on the committee Web site.