WASHINGTON WIRE
May 23, 2008
Issue 171
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Supplemental Spending Bill Includes Medicaid Provisions CMS Releases Contractors for First Round of Competitive Bidding Members Consider Delays President Signs Genetic Non-Discrimination Bill Top StorySupplemental Spending Bill Includes Medicaid ProvisionsOn Thursday, the Senate approved a $165 billion war supplemental spending bill which included moratoria on seven controversial Medicaid regulations. The House version, passed last week, included the moratoria as well. The seven regulations would restrict Medicaid coverage of rehabilitation services, graduate medical education, targeted case management, provider taxes, and intergovernmental transfers (IGTs), among other cuts. Current moratoria are in place on many of the regulations, but the delays are set to expire over the next several weeks. The Senate approved an amendment to the supplemental spending bill, which included the moratoria on the Medicaid regulations, by a 75-22 vote. This amendment also included additional funding for an expansion of veterans' education and unemployment benefits. In the hopes of averting a veto, the Senate removed many of the controversial provisions, such as troop withdrawal terms, that were included in the House bill approved last week. The changes made by the Senate now necessitate another House vote. The House is expected to consider the legislation soon after the Memorial Day recess. Health Care NewsCMS Releases Contractors for First Round of Competitive Bidding; Members Consider DelaysThe Centers for Medicare and Medicaid Services (CMS) proceeded with the implementation of Medicare's competitive bidding program for durable medical equipment, orthotics, prosthetics, and supplies (DMEPOS) this week by releasing a list of the suppliers of who have signed contracts to participate in the first round. The first round of competitive bidding is scheduled to begin on July 1st in 10 cities across the country. DMEPOS suppliers submitted bids and market share estimates for 10 targeted categories of DMEPOS and CMS offered contracts to the lowest bidders. Those suppliers who did not receive bids will not be able to serve Medicare beneficiaries in the 10 areas. Stakeholders are concerned that quality and access will be comprised and that many suppliers will be run out of business. With implementation looming, these concerns are gaining the attention of Members of Congress. In a letter sent to the Secretary of Health and Human Services this week, six Senate Finance Committee Members expressed concern about the implementation of the program and continued access to quality devices and related services for beneficiaries. The signatories of the letter, including Senators Salazar (D-CO), Stabenow (D-MI), Lincoln (D-AR), Cantwell (D-WA), Schumer (D-NY), and Wyden (D-OR), asked the agency to consider a six- to twelve-month delay in implementation of the second round in order to address issues that arise during the first round. The second round of the program is scheduled to be implemented next year in 70 cities. While the agency appears to have no intention of delaying the program, CMS did extend the deadline to July 21 for potential second round contract suppliers to become accredited. Also this week, the Chairman of the House Ways and Means Health Subcommittee, Pete Stark (D-CA), indicated that he is drafting legislation to delay implementation of the program which would be paid for by an across-the-board fee cut. The list of first round contractors can be found at www.dmecompetitivebid.com/cs. President Signs Genetic Non-Discrimination BillThe President signed the Genetic Information Nondiscrimination Act (GINA) this week which aims to prevent discrimination based on genetic information. The law prohibits discrimination by employers based on the findings of genetic tests as well as amends the Employee Retirement Income Security Act (ERISA) and the Public Health Service Act to prevent discrimination by health insurance plans against individuals based on their genetic information. Business groups have expressed some concern regarding the law's financial penalties included in the bill and the lack of leeway the legislation provides for what they consider collection of genetic information for routine business practices. However, supporters of the new law hope that it will help increase genetic research and early screening for genetic conditions and diseases. Upcoming EventsHearingsCongress in Recess until June 2nd. For More InformationFor 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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