WASHINGTON WIRE
December 12, 2008
Issue 184
DEMOCRATS PIECE TOGETHER STIMULUS PACKAGE FOR THE NEW YEAR
Obama Taps Daschle to Head HHS and White House Office of Health Reform
MedPAC Discusses Draft 2010 Payment Recommendations
Harkin Heads First HELP Prevention Health Reform Hearing
Top Story
DEMOCRATS PIECE TOGETHER STIMULUS PACKAGE FOR THE NEW YEAR
Democrats continue to work on an economic stimulus package, to be unveiled in January, that will likely include a sizeable increase in federal funding for Medicaid and other health-related programs. Governors have been making their case for federal aid during the recession and are asking Congress to consider a two year bill that could range between $500 billion and $1 trillion dollars. Congress is considering a $40 billion increase in Federal Medical Assistance Percentage (FMAP) for Medicaid.
Besides funding for FMAP, the bill will direct money to state operating budgets, infrastructure projects, unemployment insurance and food stamps. But Republicans are already skeptical of the potential plan. According to press reports, only three Republican members of the House Appropriations Committee were present at a hearing on the recovery package.
On the Senate side, Senator Finance Committee Chairman Max Baucus (D-MT) told reporters last week that the package could include a short term reauthorization of the SCHIP program and financial incentives to implement Health Information Technology in Medicare. President-Elect Barack Obama has repeatedly said that health insurance for children and implementation of HIT are among his top priorities for health reform. Obama has also indicated that health care provisions should be a part of an economic stimulus bill.
Health Care News
Obama Taps Daschle to Head HHS and White House Office of Health Reform
On December 11, President-elect Barack Obama officially nominated former Senate Majority Leader Tom Daschle (D-SD) as HHS secretary, and also selected him to lead the new White House Office of Health Reform. Contrary to rumored reports, Obama declined to name his choice for CMS administrator at the press conference. The Hill reports that Emory University Professor Ken Thorpe, Avalere Health President Dan Mendelson and failed congressional candidate Judy Feder are under consideration for the post.
The creation of the new White House health office signals that health reform will remain a priority despite the effects of the recession. At the press conference, Obama reiterated that any economic recovery plan needs to address the state of the American health care system. He said that health IT and preventative care issues were two building blocks of health care reform, and he indicated that cuts to Medicare Advantage plans would help to pay for reform.
Jeanne Lambrew, who worked in the White House Office of Management and Budget under Clinton, will be the deputy director of the new White House office.
MedPAC Discusses Draft 2010 Payment Recommendations
The Medicare Payment Advisory Commission (MedPAC) December 4 discussed draft 2010 payment recommendations, including recommendations for inpatient rehabilitation facilities (IRFs), hospitals, ambulatory surgery centers (ASCs) and physicians. In January, MedPAC will finalize these recommendations for Congress.
MedPAC commissioners discussed potential recommendations that for 2010 Congress forgo a payment update for IRFs and ASCs, give hospitals a full update and give physicians a 1.1 percent update.
Harkin Heads First HELP Prevention Health Reform Hearing
On Wednesday, December 10, Senator Tom Harkin (D-IA) led a Senate Committee on Health, Education, Labor and Pensions hearing on Prevention and Public Health: the Key to Transforming our Sickcare System. Last month, HELP Committee Chair Ted Kennedy created three working groups to deal with critical issues on health reform. Kennedy chose Harkin to lead the prevention and public health working group, and Wednesday's forum marks the first in a series of prevention and public health hearings.
In his opening remarks, Sen. Bernard Sanders (I-VT), called for the expansion of federally certified community health centers in order that they can provide preventative treatments and primary care nationwide. Sanders said that there's an opportunity in the upcoming economic stimulus package and in health reform bills to ensure many more people have access to primary care through those.
Senator Tom Coburn (R-MD) expressed concern about obesity and the need to educate the public on its effects on long term health. Coburn said that though HHS might create the best guidelines to prevent obesity, those guidelines are less effective if patients and doctors aren't aware of them. Coburn spoke about the possibility of including awareness education of such guidelines as a requirement for recertification in graduate education. Coburn also spoke of educating parents and working with school boards to educate students.
Senator Harkin said that he wants to delve into the role of uniform services in public health. He said that at one of the next prevention hearings he plans to have a representative of the uniform services speak to that role.
One of the witnesses, Dr. Ken Thorpe from Emory University, said that he thought a few key preventative measures could be implemented quickly, before the entire health reform debate gets started. Thorpe raised a universal wellness benefit for all of the uninsured that focuses on prevention, screening and the creation of a care plan. Thorpe also suggested linking smaller physician practices with community health teams to help manage Medicare beneficiaries that have chronic diseases.
Upcoming Events
Hearings
No hearings are scheduled for this week.
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