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June 30, 2008

2008

June 30, 2008

Senate Fails First Attempt to Pass Medicare Bill – Administration Grants 10 Day Reprieve

Last week, the Senate came one vote short of the 60 votes needed to invoke cloture and proceed to the Medicare Improvements for Patients and Providers Act (H.R. 6331), passed earlier in the week by the House. H.R. 6331 includes a number of important provisions including:

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Stops the 10.6% cut starting July 1, 2008 and a further 5% cut in 2009 Medicare physician payments and replaces it with a 0.5% update for the rest of 2008 and a 1.1% update for 2009

 *

Creates a national coverage policy for pulmonary rehabilitation

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Delays the expansion of competitive bidding for durable medical equipment

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Repeals the mandated title transfer for oxygen equipment

In response to the Senate’s failure to pass this essential legislation, Department of Health and Human Services Secretary Mike Leavitt – who oversees the Medicare program - announced that Medicare would delay the 10.6% cut for two weeks – giving Congress essentially three legislative days to pass legislation to avert the cuts in Medicare payments. The White House has indicated that it would likely veto H.R. 6331 due to cuts in Medicare payments to managed care plans.

The Senate will return from the July 4th recess on July 7th. It is expected that the Senate will again try to pass H.R. 6331. One more additional vote is needed to invoke cloture and vote on the bill. An additional 7 more votes are needed to pass the bill with a veto proof majority. If H.R. 6331 fails to pass by July 10th, it is unclear what the next step will be. Most observers think Congress would attempt to pass similar legislation after the August Congressional recess – retroactively restoring the cuts in Medicare payments.

The ATS Washington Office will continue to press for swift enactment of Medicare legislation that averts cuts in the Medicare program and creates a national benefit for pulmonary rehabilitation.

RESEARCH

 

Senate Appropriations Committee Passes FY09 Health Spending Bill

On June 26, the Senate Appropriations Committee passed the Fiscal Year (FY) 2009 Labor-Health and Human Services and Education Appropriations (LHHS-ED) bill. The LHHS-ED bill funds the NIH, CDC, and other federal health programs. Included in the bill is a proposed 3.5% funding increase for the National Institutes of Health (NIH).

The FY09 Labor-HHS-ED spending bill under consideration by the House Appropriations Committee would provide a slightly larger increase of 3.9% for the NIH. Because NIH must transfer $300 million out of its budget to the Global Fund for AIDS, TB and Malaria, the percentage increase translates to a 3.5% increase across all of the institutes. The NHLBI would see a rise of $103 million, from $2,922 billion in FY08 to a proposed $3,025 billion for FY09. The House Labor-HHS Subcommittee approved its FY09 health spending bill on June 19, but further action on the bill has been delayed until after the July 4th recess.

The Centers for Disease Control and Prevention (CDC) is slated for a 2.4% increase under the House bill. The Senate Appropriations Committee has not yet released an overall number for CDC. Also under the House bill, CDC’s domestic TB control program would receive a 5% increase over the FY08 level, a significant funding boost.

Below is a chart of FY07 and FY08 funding levels for NIH and CDC programs and proposed FY09 funding levels under the House-subcommittee passed bill. We will provide you with numbers from both the House and Senate bills as they become available.

 

 

National Institutes of Health (NIH)
(in millions)

 

Program 

 

FY 07 Actual

 

FY 08 Actual

 

FY 09 House Proposed

 

% Change

 

 NHLBI

 

$2,922

 

$2,922

 

$3,025

 

+3.5%

 

 NIAID

 

$4,264

 

$4,265

 

$4,416

 

+3.5%

 

 NIEHS

 

$647

 

$642

 

$664

 

+3.5%

 

 NINR

 

$137

 

$136

 

$142

 

+3.5%

 

 FIC

 

$66

 

$66.6

 

 $68.9

 

+3.5%
 NIH Total

 

$28,900

 

$29,229

 

$30,379

 

+3.9%

 

Centers for Disease Control (CDC) (in millions)

 

Program 

 

FY 07 Actual

 

FY 08 Actual

 

FY 09 House Proposed

 

% Change

 

 Domestic TB

 

$136

 

$140.3

 

$147.3

 

+5%

 

Asthma

 

$31

 

$30

 

$30

 

0

 

 NIOSH

 

$253

 

$381

 

$403

 

+5.6%

 

Chronic Disease

 

$833

 

$833

 

$876

 

+5.0%
CDC Total

 

$6,249

 

$6,375

 

$6,531

 

+2.4%

 

House Appropriations Committee Provides VA Research Increase

The House Appropriations Committee last week passed its version of the FY09 Military Construction and Veterans Affairs Appropriations bill, providing $500 million for the VA Research program. This is a $20 million (+4.2%) increase over current funding and $58 million above the Presidents budget request. The bill also provides $2.8 billion increase (+6.2%) in the VA Medical Care account and a $900 million increase (+22%) in VA facilities. It is expected that some of the facilities increase will be made available for existing approved research lab renovation projects.

Points of Contact

Gary Ewart Senior Director, Government Relations
Nuala Moore Senior Legislative Representative
Joe Kirby DC Office Administrator