WASHINGTON WIRE


May 25, 2007
Issue 134

In this issue, you'll find:

Finance Chair Announces SCHIP Mark-Up
 
Senator Clinton Offers Ambitious Health Plan

Bush Taps Nominee for Surgeon General

House Passes VA Health Bills

PPSV in the News

Top Story

Finance Chair Announces SCHIP Mark-Up

Senator Baucus (D-MT), Chairman of the Senate Finance Committee, announced this week that his committee will tentatively mark-up legislation to reauthorize the State Children's Health Insurance Program (SCHIP) on June 7th. The reauthorization of the children's health care program is a priority for many in Congress; however, there is significant disagreement among lawmakers about how to accomplish it.

The Administration and many Republican lawmakers are encouraging Congress to spend about $5 billion annually on the program, maintaining enrollment for children with family incomes up to 200% of the federal poverty level. However, Congressional Democrats and advocates would like to see $50 billion or more invested in the program and enrollment expanded to higher income children and potentially adults.

Congress' fiscal year (FY) 2008 budget resolution included an unfunded $50 billion reserve fund for SCHIP reauthorization. Chairman Baucus has stated that he will have "payfors" by the scheduled markup, but has not announced from where the savings will come. Many believe the Medicare program will be one significant target.

Meanwhile, Congress approved a supplemental war spending bill this week that did not include the controversial war timetable provisions as in the previous, vetoed measure. The legislation includes an additional $650 million for FY 2007 SCHIP funding, to go to states currently experiencing funding shortfalls.

Health Care News

Senator Clinton Offers Ambitious Health Plan

On Thursday, before a crowd at George Washington University, Senator Clinton (D-NY) unveiled the first phase of an ambitious health care agenda, should she be elected President. 

The Senator outlined a proposal focusing on prevention, chronic care, and health information technology that would cut health care spending by at least $120 billion annually. Proposals on health care quality and universal coverage are expected later this year.

Among other provisions, the Clinton plan would increase access to "chronic care coordination" plans for the chronically ill, require insurance companies to allow anyone to join a plan regardless of preexisting conditions, increase investments in health information technology, decrease prescription drug costs, and create a "Best Practice Institute" to compare the effectiveness of medical treatments.

Additionally, all insurers would be required to follow the recommendations of the U.S. Preventative Services Task Force on which preventative services to cover. Senator Clinton stated that improved preventative care could reduce the risk of diabetes, cancer and obesity in the United States.

The Senator's proposal would also reduce payments to Medicare Advantage plans, which have recently been targeted by lawmakers as a potential source of Medicare savings. It is estimated these Medicare managed care plans receive on average 112% of traditional fee-for-service plans.

Bush Taps Nominee for Surgeon General

On Thursday, President Bush announced James W. Holsinger as his nomination for U.S. Surgeon General. The Surgeon General oversees the nation's Public Health Services.

Dr. Holsinger, a cardiologist and professor of preventive medicine at the University of Kentucky, has also served as Chancellor of the University of Kentucky Medical Center, Secretary for Health and Family Services for the state of Kentucky, and Undersecretary for Health at the Department of Veterans' Affairs.

If confirmed, the nominee would place emphasis on educating the public on childhood obesity, among other public health priorities.

Richard H. Carmona, the previous Surgeon General, left office in July, 2006.

House Passes VA Health Bills

The House passed six Veteran-related bills this week that would improve access to care for Veterans with traumatic brain injury (TBI), expand access to free health care for returning soldiers, require availability of chiropractic care at all VA medical centers, and establish grant programs for veterans outreach. The bills were voted out of the House Veterans Affairs Committee just last week and faced little resistance on the House floor.

The Senate Veterans Affairs Committee has not yet marked-up companion bills, but held a hearing this week to consider similar measures, as well as additional VA-related legislation. Panel members heard from organization such as the Paralyzed Veterans of America, Wounded Warriors Project, Disabled American Veterans, and the American Academy of Neurology on how best to improve quality and access to care for returning veterans. The Senate Committee has tentatively scheduled a markup for June 27th, but it remains unclear which bills will be on the agenda.

Also this week, Congressmen Phil Hare (D-IL) and John Hall (D-NY) announced plans to introduce legislation that would place veterans' healthcare under mandatory government spending, rather than discretionary. The budgetary proposal would shelter VA healthcare from the vagaries of the annual appropriations process.

Currently, VA healthcare spending must be appropriated each year, whereas spending under other government healthcare programs such as Medicare and Medicaid is mandated. Similar VA legislation has been introduced in previous Congresses, but with the recent public and government focus on VA healthcare, some believe such legislation stands a better chance of passage this year than in previous years.

PPSV in the News

PPSV principal Jim Pyles made a presentation entitled "Will Congress Recognize and Protect The Right to Health Information Privacy?" to a meeting of consumer and health care practitioner organizations on May 11, 2007 in Washington, D. C.

Mr. Pyles also made a presentation entitled "Psychotherapy and Confidentiality" to the American Academy of Psychoanalysis and Dynamic Psychiatry, on May 19, 2007 in San Diego, California.

On May 3, 2007, Mr. Pyles gave the keynote address in Seattle, Washington, at the annual meeting of the American Academy of Home Care Physicians. The title of the presentation was "the Need for a National Chronic Care Improvement Benefit."

Upcoming Events

Congress is in Recess Until June 4, 2007

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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