WASHINGTON WIRE


April 25, 2008
Issue 167

House Approves Legislation to Delay Medicaid Rules, Senate to Act
Senate Approves Genetic Nondiscrimination Act
CMS Issues Proposed Payment Rule for Inpatient Rehabilitation Facilities
Hearings

Top Story

 House Approves Legislation to Delay Medicaid Rules, Senate to Act

On Wednesday, the House overwhelmingly approved HR 5613, legislation to delay implementation of seven controversial Medicaid regulations, by a vote of 349-62.

Introduced by Energy and Commerce Committee Chairman, John Dingell (D-MI), and Congressman Murphy (R-PA), the bill would delay for one-year seven pending Medicaid regulations which cut rehabilitative services, school-based services, graduate medical education (GME) payments, case management, outpatient services, and the use of provider taxes and Intergovernmental Transfers (IGTs). Groups such as the National Governors Association, school districts, disability organizations, and public hospitals have been vocal in their opposition to these regulations.

With such broad support for the moratoria in the House, Senate leaders are feeling pressure to act as well. Senate Majority Leader, Harry Reid (D-NV), has apparently "fast-tracked" HR 5613 for Senate floor action next week, bypassing a committee vote. Meanwhile, Senate Republican Leadership circulated a letter this week urging rejection of the House bill.

The Bush Administration has issued a veto threat on the measure.

Health Care News

 Senate Approves Genetic Nondiscrimination Act

 On Thursday, the Senate overwhelmingly approved legislation to ban discrimination by health insurers and employers based on genetic testing results.

The Genetic Information Nondiscrimination Act (H.R. 493) would prevent health insurers from requiring that individuals take genetic tests and would prohibit insurers from adjusting premiums or restricting enrollment based on the results of genetic tests. Additionally, HR 493 would prohibit employers from discriminating against employees or potential employees. Supporters hope that enactment of the bill will increase research and early screening for conditions and diseases.

The House approved HR 493 in April 2007. However, the Senate made several minor changes to the bill, so the House must now pass the Senate version. House Majority Leader, Steny Hoyer (D-MD) hopes to have the bill on the House floor by next week. The President has stated he will sign the bill once it reaches his desk.

CMS Issues Proposed Payment Rule for Inpatient Rehabilitation Facilities

On Monday, the Centers for Medicare and Medicaid Services (CMS) issued a proposed rule on the Inpatient Rehabilitation Facility (IRF) Prospective Payment System (PPS). The rule would update payment rates for services furnished to Medicare beneficiaries in IRFs for fiscal year (FY) 2009.

The proposed rule would decrease Medicare payments to IRFs by $20 million for FY 2009 - a cut mandated by the Medicare, Medicaid, and SCHIP Extension Act of 2007. That legislation also froze the so-called 75% Rule, which was being phased in at that time, permanently at 60 percent. The 75% Rule, which was strongly opposed by consumers and industry stakeholders, requires that an IRF maintain a certain percentage of patients with one or more of thirteen specific conditions in order for the IRF to maintain its status under Medicare.

The proposed rule would also make several changes which CMS states are attempts to improve the accuracy of IRF payment. The rule would update the case mix group (CMG) relative weights and average length of stay values using FY 2006 data instead of FY 2003 data. It would also set a new outlier threshold.

The agency will be accepting comments on the proposed rule until June 20th and will publish a final rule on or before August 1, 2008. The proposed rule can be found at http://www.cms.hhs.gov/InpatientRehabFacPPS/downloads/cms-1554-p-display.pdf.

Upcoming Events

 Hearings

Wednesday, April 30, 2008
Veterans' Affairs Bills
House Veterans' Affairs Committee
10 a.m., 334 Cannon

Thursday, May 1, 2008
Childhood Injuries
Senate Health, Education, Labor and Pensions Committee
10 a.m., 430 Dirksen

FDA Overhaul
House Energy and Commerce - Subcommittee on Health
10 a.m., 2322 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.


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