WASHINGTON WIRE

In this issue, you'll find:

• Crawford's Resignation and Replacement Prompts Questions
• Congress Introduces Additional Legislation for Hurricane Relief
• Wyden: Give HHS Power to Negotiate Part D Drug Prices
• Senate Approves Legislation to Extend Medicare Premium Assistance
• Hearings

Top Story

Crawford's Resignation and Replacement Prompts Questions

On Friday, September 23, 2005 Lester Crawford announced his resignation as Commissioner of the Food and Drug Administration (FDA). Crawford’s announcement was surprising to many, after being confirmed as head of the FDA just two months ago. As FDA Commissioner, Crawford has faced criticism regarding the agency's drug safety regulations and policies around access to emergency contraception.

The Bush Administration has named Andrew Von Eschenbach as the new acting commissioner. Eschenbach is currently head of the National Cancer Institute and has indicated he plans to continue in both positions for the time being. However, Eschenbach’s decision to maintain two high-profile jobs has many in Congress concerned. In a September 26th letter to the White House, Senate Finance Chairman Charles Grassley (R-IA) questioned the feasibility of Eschenbach maintaining both positions. Senate Health, Education, Labor and Pensions (HELP) Committee Ranking Member Edward Kennedy (D-MA) and Senator Barbara Mikulski (D-MD) also expressed concern over Eschenbach’s ability to maintain both roles as well as possible conflicts of interest. Congresswoman Rosa DeLauro (D-CT) urged the Administration to name quickly an appointee to fill the position in response to Secretary of Health and Human Services (HHS) Michael Leavitt’s comment that there is no timetable to fill the position.

Crawford’s abrupt resignation has promoted several Members of Congress to ask Office of Inspector General (OIG) to examine Crawford’s financial disclosures submitted during his confirmation hearings. Crawford continues to deny any conflict stating that he owns no stock in any matters the FDA regulates.

Health Care News

Congress Introduces Additional Legislation for Hurricane Relief

On Monday, September 26, 2005, the Senate Health, Education, Labor and Pensions Committee Chairman Michael Enzi (R-WY) and Ranking Member Edward Kennedy (D-MA) introduced legislation that would assist hurricane victims with private health insurance costs and coverage. The legislation would provide federal assistance in paying insurance premiums for a period of three months for displaced evacuees and businesses of 50 or fewer employees effected by Hurricane Katrina. The bill would also prohibit insurers from canceling health insurance policies or raising rates during the three-month period. If passed, the legislation would implement initiatives to make it easier for the federal government to respond to state or local needs after a public health emergency.

Senate Finance Committee Chairman Charles Grassley (R-IA) announced on Thursday, September 29, 2005 that he is in talks to revise the $8.7 billion Disaster Relief Medicaid (DRM) proposals introduced more than two weeks ago. Republican Senators and the Bush Administration have expressed concerns over the cost of the bill and the potential duplicative efforts of DRM and state waivers established by the Secretary of Health and Human Services. Republicans in the Senate have already blocked a vote on the legislation three times. Chairman Grassley is considering moving funds to Medicaid that are currently delegated to the Federal Emergency Management Agency’s health care spending. Chairman Grassley previously had hinted that the reconciliation process could be affected if the hurricane bill was not supported.

On Wednesday, September 28, 2005, the House and Senate gave way to legislation that would give hurricane-effected states preference in receiving unused rehabilitation funds from the Rehabilitation Services Administration.

Wyden: Give HHS Power to Negotiate Part D Drug Prices

Senator Ron Wyden (D-OR) announced Tuesday, September 27, 2005 that he now has the votes necessary to pass a twice-failed amendment that would give the Secretary of Health and Human Services (HHS) the authority to negotiate with pharmaceutical companies the cost of prescription drug prices under Medicare Part D.

The amendment would give HHS the power to negotiate drug prices similar to the Veterans’ Administration (VA). A report by Families USA stated that the VA obtained lower prices for most of the top drugs prescribed to seniors through direct price negotiation with drug companies. Critics of the Wyden amendment, including the Bush Administration and pharmaceutical companies, claim that competition among the drug companies will control the costs of drugs and negotiation by HHS is unnecessary.

Senator Wyden is currently evaluating various measures to move his amendment through the Senate, but has stated that he will not attach the amendment to any hurricane relief legislation for fear of slowing down the passage of the important relief package. The last time the amendment was up for a vote, it failed by one vote (49-50). Senator Olympia Snowe (R-ME), along with six other Republicans voted for the amendment.

Senate Approves Legislation to Extend Medicare Premium Assistance

On Thursday, September 29, 2005 the Senate approved legislation to extend the Qualified Individual (QI) program, which provides Medicare premium assistance to low income beneficiaries.

Under the QI program, Medicare beneficiaries with income between 120 percent and 135 percent of the federal poverty level are eligible for premium assistance. The QI benefit is set to expire on Friday, September 30, 2005. A bill to extend the program was passed by the Senate on Friday; however, the House adjourned for the week without acting on the legislation.

Monthly Medicare premiums are expected to reach $88.50 in 2006.

Upcoming Events

Hearings

Wednesday, October 5, 2005

Special Committee on Aging
10:30AM
216 Hart Senate Office Building
Preparing Early, Acting Quickly: Meeting the Needs of Older Americans During a Disaster

Friday, October 7, 2005

Committee on Ways and Means -Subcommittee on Health
10:00AM
1100 Longworth House Office Building
The Medicare payment system and the use of gainsharing arrangements

For More Information

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