WASHINGTON WIRE

Welcome to the Weekly Washington Wire on Health Care Policy! PPSV's Healthcare Reform Resource Center Please visit and bookmark this page for daily updates on the healthcare reform debate. House Appropriations Committee Reveals Short Term CR MedPAC Weighs Policy Options for Repeal or Reform of SGR System HHS Hosts Meeting on Financial Incentives and Employer Wellness Programs  HHS Announces First CMP for Covered Entity's Violation of HIPPA PPSV Hosts Healthcare Webinars Hearings                   Health Care News House Appropriations Committee Reveals Short Term CR Today, February 25, the House Appropriations Committee released details of a Continuing Resolution (CR) that would fund the government for two weeks after the March 4 deadline for the current CR funding the government at FY 2010 levels. The bill is intended to keep the government operational while a compromise is worked out on funding for the remainder of FY 2011. However, the CR would implement $4 billion of the $61 billion in spending reductions in H.R. 1, a CR which passed along party lines in the House earlier this month. President Obama has threatened to veto H.R. 1 in its current form. Senate Democrats are working on an alternative CR which would implement early some of the cuts included in Obama's FY 2012 budget. If Congress is unable to reach a compromise on a short or long term CR before March 4, the government will shut down. Congress returns from a state work period on Monday. MedPAC Weighs Policy Options for Repeal or Reform of SGR System The Medicare Payment Advisory Committee (MedPAC) met this week to discuss potential policy options to the sustainable growth rate (SGR) system, including attaching unpopular payment reform provisions to a repeal bill. The Commission debated the merits of repealing or adjusting the system, with most members agreeing that outright repeal was best. Most members also supported attaching payment reforms to any legislative vehicle used to repeal system. The Commission did not discuss potential pay-fors for the legislation, as most Medicare cuts that could have be used to pay for the SGR fix were incorporated into the new healthcare law. HHS Hosts Meeting on Financial Incentives and Employer Wellness Programs On Thursday, February 24, HHS hosted a meeting on the use of financial incentives within employer sponsored wellness programs. HHS will be regulating on the related provision within the Affordable Care Act, which allows the programs to vary participant’s cost-sharing up to 30 percent. Some consumer advocates are concerned about the possibility of programs varying insurance premiums based on health status. In a related announcement released this week, HHS detailed grant opportunities for states that incorporate wellness incentives into the Medicaid program. These incentives can take many forms, including reduced Medicaid fees and access to services not normally provided through Medicaid, according to the HHS announcement. HHS Announces First CMP for Covered Entity’s Violation of HIPPA   On Tuesday, February 22, HHS announced that it has imposed a civil monetary penalty (CMP) of $4.3 million on Cignet Health of Prince George’s County, Md. (Cignet) for violation of the Privacy Rule of the Health Insurance Portability and Accountability Act of 1996 (HIPAA). The fine represents the first CMP issued by the Department for a covered entity’s violations of the privacy rule. The Office of Civil Rights found that Cignet violated 41 patients’ rights by denying them access to their medical records when requested and maintained that Cignet refused to respond to OCR’s demands to produce the records. Covered entities are required under law to cooperate with the Department’s investigations, according to the HHS announcement. PPSV in the News PPSV Hosts Healthcare Webinars Physician Payment: Carrots Then Sticks was held January 18th and featured a summary of Medicare and Medicaid payment bonuses and penalties for physicians, including EHR, e-prescribing, PQRS, and primary care and surgical bonuses. The webinar discussed how physicians qualify for these payments, when physicians can receive payments from more than one program and the timeline for both payments and penalties. The webinar focused on the practical issues raised by these programs, including whether it is advisable to be an "early adopter." The slides and a recording of the presentation will be available soon on ppsv.com. Medical Data Registries was held on Tuesday, February 22. A survey of legal issues related to establishing and operating medical data registries, along with discussion of potential benefits and downsides to physicians. This webinar will focus on the need to create a separate legal entity; how to establish a HIPAA-compliant registry; the ins and outs of participation agreements; options to ward off legal subpoenas, including whether PSO status is the answer; and many other legal issues related to data registries. Presenters are Diane Millman and Rob Portman. On February 16, Jim Pyles and Rebecca Burke of PPSV presented a webinar on new and upcoming regulations for home health, hospice and DME companies under health reform. The webinar was sponsored jointly by the Virginia Association for Home Care and the Maryland-National Capitol Association for Homecare.   Upcoming Events  Hearings Tuesday, March 1 The Consequences of Obamacare: Impact on Medicaid and State Health Care Reform House Energy and Commerce Committee 2123 Rayburn HOB, 9am Wednesday, March 2 Preventing Health Care Fraud: New Tools and Approaches to Combat Old Challenges Senate Finance Committee 215 Dirksen, 10am Waste, Fraud, and Abuse: A Continuing Threat to Medicare and Medicaid House Ways and Means Committee 2322 Rayburn HOB, 10am Hearing on Improving Efforts to Combat Healthcare Fraud House Ways and Means Committee 1100 Longworth Building HOB, 2pm 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 Theresa Morgan of the Legislative Practice Group. 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