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October 7, 2011

2011

Washington Letter
October 7, 2011
Newsletter of the American Thoracic Society's Washington Office

1150 18th Street NW
Suite 300
Washington, D.C. 20036
Telephone:(202) 296-9770
advocacy@thoracic.org

BUDGET

House Passes Spending Measure to Fund Government Through November 18

This week, the House passed a temporary spending bill that funds the federal government through November 18. Fiscal year 2011 expired on September 30 and until Congress finalizes appropriations for fiscal year 2012, passage of temporary spending measures to provide funding for government programs will be necessary. The House approved the measure by a 352-66 vote after resolving a dispute with the Senate, which passed the bill last week, over funding for the Federal Emergency Management Agency (FEMA). The President has signed the legislation into law.

It is unclear how Congress will resolve FY2012 appropriations at this point. The House has suspended action on individual appropriations bills. While the Senate has moved most of its bills through committee, floor votes have not been scheduled on any of the bills. At this point, House and Senate proposed funding levels for the NIH are in contrast, with the House proposing a 3.3 percent funding increase over FY2011 for a total of $31.7 billion. The Senate has proposed $30.5 billion, a 0.6% cut from the FY2011 level of $30.6. 2012 appropriation prospects may depend on the recommendations of the Joint Select Committee and Deficits Reduction – better known as the “Super” committee, which is tasked with drafting recommendations on reducing the budget deficit by November 24.

HEALTH REFORM

IOM Issues Report on Essential Health Benefits

Late this week, the Institute of Medicine (IOM) released a report outlining its recommendations for essential health benefits (EHB) for health insurance exchanges being implemented under health care reform. In the report, the IOM recommends, that the benefits package be modeled on mid-tier health plans currently offered by small employers, with the addition of some services such as mental health coverage. The IOM does not spell out specific benefits but points to the Affordable Care Act (ACA) requirements - that essential benefits include outpatient, hospital, emergency, maternal, newborn and children's care, prescription drugs, mental health and substance abuse treatment, rehabilitation, labs, prevention and wellness. The report stresses the need for an affordable EHB in order to keep overall health system costs down and recommends specific budget targets for the overall package and evidence of cost-effectiveness for individual services.

Following another report recommendation calling on the Department of Health and Human Services to initiate efforts to engage the public, Health and Human Services Secretary Kathleen Sebelius said that the Department will be holding “listening sessions" around the country. The process for finalizing the EHB package has already begun within the Department with proposed federal regulations on the essential health benefits package expected to be out just before the end of 2011. The EHB will need to be determined prior to 2014, when health insurance exchanges are scheduled to begin operating. Information on the IOM report can be found online at: http://www.iom.edu/Reports/2011/Essential-Health-Benefits-Balancing-Coverage-and-Cost.aspx

CLINICAL PRACTICE

ATS Member Testifies Before House Science and Technology Committee

ATS member George Thurston, PhD testified before the House Science and Technology Committee this week regarding the science that supports the EPA’s standard setting under the Clean Air Act. The somewhat adversarial hearing featured five witnesses who represented industry or position sympathetic to industry concerns and only one witness, Dr. Thurston, who spoke in support of the Clean Air Act and its benefits.

While outnumbered on the panel, Dr. Thurston was effective in voicing the known health benefits of the Clean Air Act and explaining the strength and consistency of the science supporting the need for stricter Clean Air Act standards.

ATS Joins Letter to MedPAC on SGR

The American Thoracic Society joined the American Medical Association and 40 other medical organizations in a letter to the Medicare Payment Assessment Commission (MedPAC), a Congressionally convened panel to give advice on Medicare payment issue, urging the commission to revise its recommendations for dealing with the flawed sustainable growth rate factor (SGR).

MedPAC has recommended Congress reach a permanent fix for the SGR factor by providing a zero percent update in Medicare physician payments for 10 years and by cutting specialty provider payments by 5.9 percent in each of the next three years, and then level funding specialty payments for the following seven years.

The letter to MedPAC opposes the recommendation and notes that Medicare physician payments have been effectively frozen for the past 10 years. Further freezing of Medicare payments, in addition to specialty cuts, would likely reduce Medicare beneficiary access to physicians.

Despite the broad appeal from the physician community, MedPAC votes 15-2 to repeal SGR and pay for the repeal with Medicare program cuts including the ten year freeze in Medicare payments and 3 years or 5.9 percent cuts in specialty payments.

ATS Urges Super Committee to Consider Malpractice Reform

In related news, the ATS joined the American Medical Association and over 50 medical organizations in a letter to the Joint Select Deficit Reduction Committee, better known as the “Super Committee,” urging the committee to consider malpractice reforms as part of their deficit cutting package. The letter notes malpractice costs add to the overall rise in health care.

CLEAN AIR

House Passes Bill to Delay Cement Kiln Clean Up

The House passed legislation, by a vote of 262-161, to delay EPA rules to require reduced emissions from cement kilns. Earlier this year, the EPA has finalized maximum achievable technology, or MACT, rules that will require cement kilns to reduce air pollution emissions. Under MACT rules, the EPA looks to the technology the top 12 percent most efficient facilities use to reduce air pollution and will then issue a rule requiring the rest of the industry to adopt similar pollution control technology.

Noting the wide range of hazardous pollutant emitted from cement kilns, the ATS urges Congress to vote against the legislation delaying the clean up. The legislation will now go to the Senate where its fate is uncertain.

 


The Washington Letter is written by the American Thoracic Society government relations office and emailed to all ATS members living in the United States. The letter keeps clinicians, scientists, and patients abreast of legislative, judicial, and regulatory issues in pulmonary, critical care, and sleep medicine. Each week's edition is archived on the ATS Web site, www.thoracic.org. If you have any questions or one more information about becoming involved in advocacy, please contact the ATS Washington office at 202-296-9770.