WASHINGTON WIRE
July 20, 2007
Issue 140
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In this issue, you'll find: Finance Committee Approves SCHIP Legislation House Approved Labor-HHS-Education Spending Bill House Panel Approves Mental Health Parity Bill Bush Administration Requests Additional Funding to Fight Medicare Fraud Top StoryFinance Committee Approves SCHIP LegislationAfter several postponed markups, the Senate Finance Committee approved controversial legislation to reauthorize the State Children's Health Insurance Program (SCHIP) by a vote of 17-4 on Thursday. The Finance Committee proposal would provide a federal match for states covering children in families at 300 percent of the federal poverty level and provide an additional $35 billion over the existing $25 billion baseline over five years. The Committee estimates that this increase will provide coverage for an additional 3.3 million children who are currently uninsured, as well as continue to provide coverage for all children currently enrolled. A major point of contention among SCHIP stakeholders has been whether or not and to what extent the program should provide healthcare coverage for parents and childless adults. The Finance Committee's proposal would not allow additional SCHIP waivers to be granted to states in order to provide adult coverage as some states have done. However, for those states that currently have such waivers, the proposal would provide funding to help states transition SCHIP-enrolled childless adults onto Medicaid. Additionally, funding for parents of SCHIP-covered kids would be transitioned into small block grants where the state would receive a reduced federal matching rate for covering these individuals. The proposal represents a compromise between Senators Baucus, Grassley (R-IA), Rockefeller (D-WV) and Hatch (R-UT) - the Chairman and Ranking Member of the full Committee and Chairman and Ranking Member of the health subcommittee, respectively. The $35 billion proposal would be funded by a $0.61 increase in the federal tobacco tax. The President again threatened to veto the Finance Committee's SCHIP package this week, stating that "expansion of government in lieu of making the necessary changes to encourage a consumer-based system is not acceptable." The President has proposed a $5 billion increase in funding for the program over five years. House leaders are hoping to markup an SCHIP bill next week and will likely combine their SCHIP reauthorization bill with a physician payment fix, among other Medicare provisions. However, the markup date is subject to speculation. Health Care NewsHouse Approved Labor-HHS-Education Spending BillOn Thursday, the House approved its fiscal year (FY) 2008 spending bill for the Departments of Labor, Health and Humans Services (HHS), Education by a vote of 276-140. The bill would provide the Departments with a total of $154.2 billion in total discretionary spending, which is $12.5 billion, or 8.8 percent, more than the President requested. The Senate passed its Labor-HHS-Education spending bill earlier this year, but a final conference agreement and floor vote may not come until October. The President has indicated he will veto any spending bills that exceed his FY 2008 budget request and, as illustrated by yesterday's vote, House leaders do not have the votes necessary to override a veto. House Panel Approves Mental Health Parity BillThe House Education and Labor Committee approved its mental health parity legislation on Wednesday, after rejecting amendments that would have brought the bill more inline with the Senate's version. The Paul Wellstone Mental Health and Addiction Equity Act of 2007 would require employers to offer mental health coverage equal to coverage offered for other physical medical conditions. The Senate passed mental health parity legislation earlier this year after the bill's sponsors worked out a compromise with insurers, businesses and mental health advocates. Supporters of the House bill argue that the Senate bill does not go far enough in mandating coverage given that it would allow insurers to determine what mental health benefits would be covered. Additionally, many House Members have expressed concern with a provision in the Senate bill that would pre-empt state laws that already require insurers to offer mental health coverage equal to other benefits. Congressman John Kline (R-MN) offered a substitute amendment at Wednesday's markup that would have replaced the House bill with the Senate version. The amendment failed by a 16-27 vote. The legislation now heads to the House floor for debate and a vote, but no date has been set. Bush Administration Requests Additional Funding to Fight Medicare FraudAt a House Budget Committee hearing this week, Health and Human Services (HHS) Secretary, Michael Leavitt, told Members that the Bush Administration is requesting $1.3 billion in fiscal year (FY) 2008 to fund a program to fight fraud in the Medicare and Medicaid programs. The $1.3 billion in combined mandatory and discretionary spending would fund a joint program between HHS and the Department of Justice -- the Health Care Fraud and Abuse Control (HCFAC) program -- which coordinates Federal, state and local law enforcement activities. The program is scheduled to receive a $20 million increase in mandatory funding this year, but the Secretary is requesting an additional $183 million in discretionary spending as well. The Secretary referenced recent findings by the Office of Inspector General (OIG) and the Centers for Medicare & Medicaid Services' (CMS) in South Florida, where it was determined that 31 percent of suppliers did not meet one or more of Medicare's enrollment requirements, and, consequently, had their billing privileges revoked. Secretary Leavitt stated that every additional dollar spent on fraud investigations would yield approximately 13 to 15 times the amount invested. Upcoming EventsHearingsWednesday, July 25, 2007 VA Health Care Funding FDA Tobacco Regulation; Disease Research and Prevention Bills - Markup Post-Traumatic Stress Disorder Competitive Bidding for Clinical Lab Services Thursday, July 26, 2007 Miner's Safety and Health For More InformationFor 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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