AMA Scores Victory on Medicare Physician Payments

In a major victory for organized medicine, the Obama administration announced last week that the cost of physician-administered drugs will be removed from Medicare's sustainable growth rate (SGR) calculations retroactive to the 1996 base year. The announcement came as part of the Centers for Medicare & Medicaid's release of its 2010 Medicare physician payment proposed rule. The move, which the AMA has been calling for since 2002, will avert many of the payment cuts that have been forecast because of the SGR and substantially reduces the cost the Congressional Budget Office would assign to legislative proposals to permanently repeal the SGR. AMA President J. James Rohack, MD, hailed the action, noting that it paves the way for Congress to ensure stable Medicare physician payment rates that reflect increasing practice costs and preserve seniors' access to care. "Our nation has a historic opportunity for health reform this year," Dr. Rohack said, "and strengthening Medicare should be a cornerstone of this effort."



Source: AMA Health System Reform Bulletin, July 7, 2009

Medicare Physician Payment Update

Current legislation being reviewed in Congress has the potential to drastically alter the practice of surgery in the United States. The American College of Surgeons position is that there can be no meaningful health care reform without long-term reforms to the Medicare physician payment system, which is based on the flawed sustainable growth rate formula (SGR). As you are aware, on January 1, 2010, surgeons, and all physicians face a 22% cut in Medicare reimbursement.

ACS and the AMA are advocating that to reform Medicare’s payment system and find more innovative models of Medicare physician payment, Congress must first immediately and permanently eliminate the SGR. ACS does not support another short-term “patch” that only temporarily prevents Medicare payment cuts and does not directly address the problems with the SGR.

Additional information about the ACS and the AMA positions on this issue can be found at the following links:

AMA Medicare Physician Payment Reform
American College of Surgeons Health Care Reform Information

If you are interested in helping to advance this issue, contact your Senators and Representatives today. The following instructions are from the ACS:

Instructions
Please call toll-free 1-877-925-8742
You will be asked to enter your zip code and will then be connected to your legislators’ offices. Once you are connected, tell them you are a constituent and leave your name, phone number and address, along with the suggested message below.

Phone Message
As a surgeon and as your constituent, I urge you to ensure that the SGR is permanently abolished in any health care reform legislation and that this critical issue is not simply addressed by another short-term patch.

Physician Leaders Urge PMAs to Reduce Industry Influence

Eleven former and current leaders of professional medical associations (PMAs) published an article in the April 1 Journal of the American Medical Association, calling on physicians to reject funding from pharmaceutical and medical device industry groups.

In the article, the group states that the ideal physician-industry relationship would involve no industry contributions. However, the group recognized that industry groups help fund continuing medical education (CME) programs that are crucial to professional development. The group recommends that PMAs set a benchmark that no more than 25 percent of funding be derived from industry groups.

The group believes that physician integrity and quality may be compromised through industry-funded educational programs. Their fear is that the educational programs may turn into marketing sessions, slanted to support a certain company's device or procedure. The group does not advocate for restrictions on industry presence in exhibit halls and advertisements, since these are presented as clear marketing efforts.

The group urges PMAs to form committees that would be in charge of collecting non-restricted industry funds, allocating them among a variety of educational programs. Many groups have already taken efforts to strengthen their codes of conduct to prevent potential conflicts of interest.

Congress has also voiced its support for industry-physician transparency. Sen. Chuck Grassley (R-IA) and Sen. Herb Kohl (D-WI) have introduced the Physician Payments Sunshine Act (S. 301), which would require companies to report all gifts and payments to physicians totalling more than $100 a year to the Department of Health and Human Services. Those who fail to report would face fines of up to $1 million.

Source: BNA

CBO Foresees Access Problems from Physician Pay Cuts

The Congressional Budget Office (CBO) predicts fewer physicians will participate in Medicare if Congress allows a 21 percent pay cut in 2010 and cumulative cut of 40 percent by 2014.

The CBO predicts that the cuts may lead many physicians, especially those in primary care, to either stop participating in Medicare or stop accepting new Medicare patients. It is predicted that specialists would either follow one of these options, or compensate for lower payment by increasing the number of tests and procedures performed.

The CBO also predicts that reduced access will force many patients to seek treatment in emergency rooms, where they may not receive the proper level of treatment.

The CBO's letter to the House Budget Committee can be found at:
http://www/cbo.gov.

NIH Announces Summer Research Opportunities for Students and Teachers

Raynard S. Kington, Acting Director of the National Institutes of Health (NIH), has announced summer research opportunities for students and teachers, funded by the American Recovery and Reinvestment Act of 2009 (ARRA).

The NIH hopes to provide at least $20 million to fund summer programs for 4,000 to 6,000 students and educators. The goal of the grant program is to connect students with teachers who can help them identify a lifelong interest in a particular field of scientific research.

For more information on projects of interest to NIH and research opportunities at NIH-funded facilities, visit the full announcement at:
http://www.nih.gov/about/director/newsletter/newsletter.htm.

Economic Stimulus Plan Allocates Funds for NIH and NIDDK Grants

As you are aware, allocated from the American Recovery and Reinvestment Act of 2009, NIH has designated at least $200 million for a new initiative called NIH Challenge Grants in Health and Science Research, contingent upon the submission of a sufficient number of scientifically meritorious applications. In addition, Recovery Act funds allocated to NIH specifically for comparative effectiveness research (CER) may be available to support additional grants. Grants will be awarded on a $500,000 per year/for two year schedule, producing roughly 200 new grants from the program. Below are links to further information regarding the availability of NIDDK supplement grants and NIH and NIDDK challenge grant topics:


NIDDK Supplement Program Using American Recovery and Reinvestment Act (ARRA) Funds
http://www2.niddk.nih.gov/Recovery/Supplements.htm


NIDDK Recovery
http://www2.niddk.nih.gov/Recovery/


NIH Recovery
http://www.nih.gov/recovery/

Welcome

Dear AUGS Members:

Welcome. I would like to introduce you to the AUGS Advocacy Blog, the latest member benefit from AUGS. We have developed the AUGS Blog for a one-stop location on government relations news affecting women’s pelvic floor professionals. The blog tracks and archives regulatory updates, Federal Agency announcements, federal legislation, grassroots messages, advocacy information, education and research programs for female pelvic health programs, and general healthcare news.

There are 3 ways to access news on the blog:

• Visit the AUGS Blog at www.augsadvocacy.blogspot.com
• Click on AUGS Blog headlines on the AUGS Web site at http://www.augs.org/
• Sign up for E-mail alerts on the AUGS Blog

To help you get acquainted with the features offered by the blog, AUGS has created a list of “Frequently Asked Questions” that can be found here: http://www.augs.org/Advocacy/AdvocacyUpdateBlog/tabid/399/Default.aspx.

Staying aware of what is happening in healthcare is the best way to ensure that you are prepared for the latest regulations, policies, and laws that will affect your practice. The AUGS Blog is part of the Government Relations Committee’s effort to provide you with resources to enhance your services as a health care professional. We welcome any comments, questions, or news tips at info@augs.org.

In the coming year, AUGS Government Relations will continue building our presence as a healthcare leader by representing the urogynecologic sub-specialty in key public policy issues that affect the profession and patient care; ensuring that the voice of the urogynecologist is at the table during important policy discussions and decisions; and pursue advocacy efforts with federal policymakers, allied organizations, professionals with related goals, and patient advocacy groups. The AUGS Advocacy Blog will be home to news and developments on all of these efforts.

Sincerely,

Alan Garely, MD
President
AUGS Government Relations Committee