WASHINGTON WIRE
June 8, 2007
Issue 135
In this issue, you'll find:
SCHIP Mark-Up Slips, Kennedy and Hatch Announce their Priorities
House Approves Stem Cell Legislation, Presidential Veto Nearly Certain
House Subcommittee Clears HHS Spending Bill
Bill to Expand 340B Program Introduced in the House
Top Story
SCHIP Mark-Up Slips, Kennedy and Hatch Announce their Priorities
Earlier this week, Senate Finance Committee members held a private meeting to discuss reauthorization of the State Children's Health Insurance Program (SCHIP).
Senate Finance Committee Chairman, Max Baucus (D-MT), has already stated that reauthorization of the healthcare program, set to expire on September 30th of this year, is a priority for the Committee. Last week it was thought that the Committee would have a draft ready for mark-up by June 7th. However, it now appears that the mark-up date will slip to at least next week, if not later, and it is unlikely that a bill would reach the Senate floor before the July 4th recess.
Those in attendance at the meeting stated that much of the discussion focused on the scope of coverage under SCHIP. Many advocates would like to see the program expanded to cover higher income children, pregnant women and even childless adults. However, SCHIP-purists want to keep the program focused on health care for low-income children.
When asked about a price tag, Chairman Baucus has only responded that policy will drive the score, rather than creating policy to fit a predetermined cost. This year's fiscal year (FY) 2008 budget resolution created a yet-to-be-funded reserve fund of up to $50 billion over five years to pay for reauthorization. Cuts to the Medicare Advantage program and increases in federal tobacco taxes continue to be considered as ways to pay for an SCHIP bill.
Stakeholders have also been debating whether a physician fee fix will be attached to the SCHIP reauthorization this year, but statements from several Committee members this week indicated such a rider is increasingly unlikely.
Also this week, two of the original authors of the SCHIP program jointly released a series of priorities for SCHIP reauthorization. Senators Kennedy (D-MA) and Hatch (R-UT) stated that children must remain the primary focus of the program and suggest increasing outreach to the millions of children eligible for SCHIP or Medicaid but are not enrolled. Additionally, the Senators would like to see SCHIP cover premiums for certain low-income children who could obtain employer-sponsored health care through their parents. They also want to reexamine the five-year waiting period for legal immigrant children.
In their statement, the Senators stated support for an increase in the federal tobacco tax in order to pay for the reauthorization.
Health Care News
House Approves Stem Cell Legislation, Presidential Veto Nearly Certain
By a vote of 247-176, the House approved legislation this week that would lift federal restrictions on embryonic stem cell research. The Senate approved the bill earlier this year and the legislation now heads to the President's desk, where he will almost certainly veto the measure.
In 2001, President Bush placed a ban on federally funded embryonic stem cell research equating such research to destroying a human life. However, many in Congress argue that stem cell research could produce new treatments for diseases such as Parkinson's and disabilities such as spinal cord injuries.
The President vetoed a similar bill to the one recently passed by the House last summer and has stated his intent to veto this legislation as well. The House currently does not have the votes needed to override a Presidential veto.
In related news this week, researchers announced that they had successful generated embryonic stem cells out of adult skin cells of mice - essentially turning back time on the cells and creating embryonic stem cells without destroying an embryo. Such findings could solve the ethical debate over embryonic stem cell research; however, scientists admit similar results in human would be incredibly difficult to achieve.
House Subcommittee Clears HHS Spending Bill
On Thursday afternoon, the House Labor, Health and Human Services (HHS), and Education Appropriations Subcommittee approved a $607 billion spending bill for fiscal year (FY) 2008.
Often one of the most controversial of the 12 annual spending bills, the legislation would increase discretionary spending in FY 2008 by $6.9 billion, or 4.8 percent, from last year and $10.6 billion more than President Bush's fiscal 2008 budget request, for a total of $151.1 billion.
Notably, the spending bill would provide $29.6 billion for the National Institutes of Health (NIH). This represents an increase of $750 million, or 2.6 percent, from last year and $1 billion more than requested by President Bush.
Additionally, the Centers for Disease Control and Prevention (CDC) would receive $6.4 billion, an increase of $246 million, or 4 percent, from FY 2007 and $466 million more than the President's budget requested.
The bill was fairly well received by Republican Committee members who praised Chairman David Obey (D-WI) for the way in which he allocated the funds; however, the President has indicated he would consider vetoing spending bills that exceed his requested discretionary cap.
The full House Appropriations Committee has scheduled a mark-up for the Labor-HHS-Education spending bill for June 14th, although a time has not yet been posted.
Bill to Expand 340B Program Introduced in the House
On June 7th, Representatives Bobby Rush (D-IL), Jo Ann Emerson (R-MO) and Bart Stupak (D-MI) introduced H.R. 2606, the 340B Program Improvement and Integrity Act of 2007.
The 340B program currently provides discounts on outpatient prescription drugs to certain safety-net providers. The House legislation would extend 340B discounts to the inpatient setting. The bill would also expand the 340B program to rural health providers, codify 340B eligibility for children's hospitals, and require the establishment of reasonable exceptions to the current exclusion of 340B programs in group purchasing arrangement for outpatient drugs.
PPSV Principal and President of the Safety Net Hospitals for Pharmaceutical Access (SNHPA), Bill von Oehsen, participated in a press conference at the Capitol this week with Congressmen Rush and Stupak to introduce the legislation. Similar legislation was introduced in the Senate earlier this year.
Upcoming Events
Hearings
Tuesday, June 12, 2007
Drug and Medical Device Legislative Proposals
House Energy and Commerce - Subcommittee on Health
10 a.m., 2123 Rayburn
Comparative Clinical Effectiveness
House Ways and Means - Subcommittee on Health
10 a.m., 1100 Longworth
Wednesday, June 13, 2007
Walter Reed Progress Report
House Armed Services - Subcommittee on Military Personnel
2 p.m., Rayburn
Thursday, June 14, 2007
Fiscal 2008 Appropriations: Labor-HHS-Education
House Appropriations Committee Markup
Time TBA
FDA Overhaul, Drug and Medical Device Fees
House Energy and Commerce - Subcommittee on Health Markup
Time TBA, 2123 Rayburn
For More Information
For further information on any topics discussed or publications listed, or to get copies of anything mentioned in this alert, please call 202. 466.6550 and ask for the Legislative Practice Group.
Powers Pyles Sutter & Verville PC is a full service law firm specializing in health care and education law and located at 1501 M St., NW Seventh Floor, Washington DC 20005
© Copyright 2007, Powers Pyles Sutter & Verville PC
All rights reserved.
