WASHINGTON WIRE

In this issue, you'll find:

• Tax Bill Targets Medicare Physician Payments, Other Health Provisions
• Ryan White CARE Act Entangled in NIH Reauthorization
• Senate Confirms New FDA Chief
• Autism Bill Clears House and Senate
• Congress Scheduled for Adjournment

Top Story

Tax Bill Targets Medicare Physician Payments, Other Health Provisions

Today, the House approved a legislative package impacting taxes, trade and federal health care programs.

Negotiated over last several days by Senate and House Republican leaders, the legislation would, among other things, prevent a scheduled 5% cut in Medicare physician payments in 2007, freezing payments at their current levels. In addition, beginning in July 2007, physicians could receive 1.5% bonus payments in exchange for voluntary submission of data on quality measures.

The legislation would also extend the Medicare therapy cap exception process for an additional year, allowing beneficiaries requiring extensive therapy services the opportunity to exceed the current Medicare therapy limit. Additionally, the legislation makes several technical corrections to last year's Deficit Reduction Act (DRA), increases Medicare payments for dialysis services, and extends transitional medical assistance (TMA) for low-income families transitioning off of Medicaid.

In order to help pay for the physician payment freeze and other costly provisions, lawmakers are targeting the Medicare Modernization Act's (MMA) "stabilization fund" - set up in 2003 to entice insurance companies to participate in the Medicare prescription drug program. Other cost-saving health-related provisions include a 0.5% reduction in Medicaid provider taxes (preempting expected CMS regulations that would have cut payments by 3%).

Despite its passage in the House, many House Democrats raised concern regarding the procedures and timeframe surrounding consideration of the bill and proposed amendments that would have stalled the legislation in the Senate. Debate on procedures and certain trade provisions in the package is expected in the Senate as well. Although many expect the legislative package to be enacted, it is still far from certain and procedural hurdles could keep the Senate in session until Sunday.

Health Care News

Ryan White CARE Act Entangled in NIH Reauthorization

As lawmakers rush toward adjournment, negotiations to accomplish unfinished priorities are well underway.

House Energy and Commerce Committee Chairman Joe Barton (R-TX) is determined to enact reauthorization legislation for the National Institutes of Health (NIH). Chairman Barton is involved in negotiations to combine his House-approved NIH legislation with the Senate-approved Ryan White CARE Act reauthorization and the Senate-approve Bioterrorism reauthorization bill, priorities for Senators Enzi (R-WY) and Kennedy (D-MA), and Senator Burr (R-NC) respectively.

The Ryan White CARE Act will reauthorize funding for low-income individuals with HIV/AIDS and was recently cleared by the Senate after weeks of negotiations and holds. Senator Burr's bill would reauthorize the 2001 bioterrorism law and create a new agency - the Biomedical Advanced Research and Development Authority. Chairman Barton's NIH reauthorization bill would significantly restructure the agency and create a common fund to be used for cross-cutting research between centers.

Chairman Barton has threatened to deny House consideration of the HIV/AIDS legislation until the Senate takes up the NIH bill. However, Senator Kennedy is also expecting some Senators to continue to block the NIH legislation while they wait for other health care priorities (including additional funding for the State Children's Health Insurance Program) to be adopted as part of a final healthcare package.

Whether and under what procedure the legislative package will be considered remains to be determined.

Senate Confirms New FDA Chief

On Thursday, November 7, 2006, the Senate voted to confirm Andrew C. von Eschenbach to lead the Food and Drug Administration (FDA), but not without controversy.

Von Eschenbach was nominated nearly 9 months ago by President Bush to head the agency but immediately faced holds from Senators Clinton (D-NY) and Murray (D-WA), who demanded an FDA decision on the emergency contraceptive known as "Plan B."

On Wednesday, the Senate leadership garnered the necessary votes to overcome several additional holds on the nomination and von Eschenbach was confirmed by a vote of 80-11. Among those who voted against the nomination was Finance Committee Chairman Charles Grassley (R-IA) who stated that von Eschenbach has been involved in keeping information from him regarding the FDA's handling of the drug "Ketek."

Autism Bill Clears House and Senate

This week, both the House and Senate cleared legislation that would authorize $945 million over five years for autism research, screening, treatment and education.

The Senate had passed a version of the legislation in August 2006, but the House choose to add additional funding to the Senate bill as well as remove a section that would have mandated the creation of new NIH "centers of excellence" for autism research.

Upcoming Events

Congress Scheduled for Adjournment

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