WASHINGTON WIRE
January 23, 2009
Issue 187
House Committees Pass Economic Stimulus Package; Senate Committees Release Summaries
Kohl, Grassley Introduce Physician Payment Sunshine Act
CMS Extends Demo for Patients with Multiple Chronic Illnesses
Rima Cohen Could be Selected as the Next CMS Administrator
Top Story
House Committees Pass Economic Stimulus Package; Senate Committees Release Summaries
On Thursday, Jan. 22, both the House Energy and Commerce and House Ways and Means Committees passed an economic recovery package worth $835 billion dollars. The Senate Finance and Appropriations Committees have released summaries of the Senate version of the bill, S. 1, which is scheduled for mark-up hearings on Tuesday.
The bill, the American Recovery and Reinvestment Act of 2009, provides funding for infrastructure and state programs, including large funding increases for Medicaid and health information technology (HIT), as well as funding for an extension of COBRA benefits. Both chambers seek to pass final versions by the President Day recess starting February 14.
Medicaid: The House bill increases federal matching funds for Medicaid by $87 billion. All states would receive an increase in their FMAP by 4.9 percentage points; states that would otherwise expect a drop would remain eligible for funding. But states with a significant increase in unemployment would receive an additional FMAP increase.
In addition, states have the option to expand Medicaid to cover certain unemployed and uninsured. States could also choose to cover families with gross incomes below 200 percent of the federal poverty level. These provisions apply to individuals who receive unemployment benefits, have already exhausted unemployment benefits or are fired between Sept. 1, 2008, and Dec. 31, 2010.
HIT: The House bill also includes $20 billion for health information technology. This includes provisions establishing government standards by 2010. Physicians could receive $40,000 to $65,000 for establishing quality measures and adopting an effective health IT system. Hospitals could receive several million dollars through Medicare and Medicaid for adopting health IT.
The privacy and security provisions of the bill would prohibit the sale of an individual's information without consent and would allow an individual to request an audit trail. The bill also requires a breach notification in the case of an unauthorized disclosure of information.
Other Provisions: The bill provides $500 million in funding for Vocational Rehabilitation (VR) State Grants.The bill language specifies that the funds will be available over a two year period ($250,000,000 immediately on enactment and the remaining $250,000,000 available on October 1, 2009) to support VR services authorized under Title I. The bill also provides $200 million to the Centers for Independent Living.
Finally, the bill also extends the moratoria on six Medicaid regulations, includes $13 billion in formula grants for IDEA Special Education and $600 million for formula grants to help states serve children with disabilities age 2 and younger. The legislation also designates $500 million to help the Social Security Administration address the disability claims backlog and $400 million to replace the SSA's National Computer Center.
Health Care News
Kohl, Grassley Introduce Physician Payment Sunshine Act
On Jan. 22, Sens. Herb Kohl (D-WI) and Chuck Grassley (R-IA) reintroduced legislation that would require drug and device companies to report payments and gifts to doctors worth more than $100 annually, a stricter requirement than previous proposals.
The Physician Payments Sunshine Act of 2009 would impose fines of as much as $1 million for companies that failed to comply with the reporting mandate. The bill also includes a provision allowing states to collect information not covered by the federal registry. For example, the bill does not require disclosure of gifts to nurse practitioners, but that does not prevent states from collecting such information.
The bill does not allow states to collect information when the total value of gifts given over a year is less than $100. It is unclear if the proposal allows states to fine more than $1 million.
CMS Extends Demo For Patients with Multiple Chronic Illnesses
CMS decided to extend its first demonstration project for beneficiaries that have multiple chronic illnesses and have Medicare high cost. CMS' data says that three of the companies that participated in the demonstration have improved the quality of care while controlling cost for this population.
The three-year extensions will allow the three providers to continue experimenting with coordination and information technology to eliminate unnecessary procedures and improve communication between patients, primary care and specialist providers
The three organizations that will participate in the three-year extension are:
* The Health Hero Network's Health Buddy (OR and WA);
* The Key to Better Health program (NY); and
* The Massachusetts General Care Management Program.
Rima Cohen Could be Selected as the Next CMS Administrator
Press reports note President Obama might tap Rima Cohen, the current director of health and social services for New York City, as CMS's next administrator. Cohen worked as HHS Secretary-designate Tom Daschle's chief health aide in the Senate for approximately 10 years.
Upcoming Events
Hearings
Tuesday, Jan. 27
Economic Stimulus Package
Senate Appropriations Committee
Full Committee Markup
Time TBA, S-128 Capitol Bldg.
Health IT and Privacy
Senate Judiciary Committee
Full Committee Hearing
9:30 a.m., 226 Dirksen Bldg.
Health Access for High-Risk Populations
Senate Health, Education, Labor and Pensions Committee
Full Committee Hearing
10 a.m., 430 Dirksen Bldg.
Economic Recovery and Stimulus
Senate Finance Committee
Full Committee Markup
10:30 a.m., 215 Dirksen Bldg.
Thursday, Jan. 29
Health Care Revision
Senate Health, Education, Labor and Pensions Committee
Full Committee Hearing
10 a.m., 430 Dirksen Bldg.
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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