AANA Federal Government Affairs
HOTLINE
Number 2005-25 Week of Monday, October 17, 2005


In This Issue:

* Chairman of Senate Finance Committee Outlines Reconciliation Plans
* HHS Moves to Advance Nationwide Interoperability Health Information Technology (HIT)
* Proposal to Add Health Savings Accounts to Medicaid Introduced
* Amendments




>> Chairman of Senate Finance Committee Outlines Reconciliation Plans


A proposal by Senate Finance Committee Chair Chuck Grassley (R-IA) would reduce Medicare payments to private insurance plans and home health agencies, while making "only small cuts to Medicaid." Many CRNAs receive reimbursement under Medicaid for labor and deliveries; however, the reconciliation bill might also include a fix to the Medicare physician fee schedule, which directly affects reimbursement for CRNAs through the Medicare system. Unless Congress acts, the Medicare agency says Part B payments for healthcare services including those provided by CRNAs will be cut 4.3% in 2006.

Grassley's proposal would reduce mandatory spending by $12 billion over five years, $2 billion more in cuts than the committee was required to make as part of the fiscal year 2006 budget resolution. Grassley is considering proposals that would reduce payments to hospitals for outpatient care, for savings of $400 million; reduce from 100% to 75% the amount of bad debt that skilled nursing facilities can write off, for savings of $500 million; freeze the home healthcare market basket, for $2.1 billion in savings over five years; eliminate an incentive fund for insurers to participate in the new Medicare prescription drug benefit for savings of $6.8 billion over five years; create pay for performance guidelines for Medicare providers; boost payments to rural hospitals and home health agencies; adopt the Bush administration's "risk adjustment proposal" that would give higher payments to insurers covering sicker patients and lower payments to insurers that enroll healthier patients to save $5.4 billion over five years; extend a cap on coverage for therapy services; and, freeze Medicare physician payments for one year, averting a scheduled 4.3% payment reduction in 2006, for a cost of $6.6 billion over five years (American Health Line, 10/14).

Visit the Senate Finance Committee Website, http://finance.senate.gov/




>> HHS Moves to Advance Nationwide Interoperability Health Information Technology (HIT)


Health and Human Services (HHS) Secretary Michael Leavitt has announced the award of $17.5 million in contracts to public and private organizations that will use the funds to accelerate the adoption of health information technology and the secure portability of health information across the United States. One of the major pieces of legislation currently being considered in Congress regards Health Information Technology (HIT) and the use of electronic medical records by CRNAs.

Under the HHS contracts, organizations will form strategic partnerships to develop the building blocks necessary for achieving the President's goal of widespread adoption of interoperable electronic health records within 10 years. The projects funded under these contracts will create and evaluate processes for harmonizing health information standards, develop criteria to certify and evaluate health IT products, and develop solutions to address variations in business policies and State laws that affect privacy and security practices that may pose challenges to the secure communication of health information. Under the contracts, these partnerships report to the American Health Information Community, a new Federal advisory committee that is chaired by Secretary Leavitt and charged with providing recommendations to HHS on how to make health records digital and interoperable.

Read Secretary Leavitt's Statement, http://www.hhs.gov/news/press/2005pres/20051007.html

Also see the HHS Press Release, http://www.hhs.gov/news/press/2005pres/20051006a.html



>> Proposal to Add Health Savings Accounts to Medicaid Introduced


Representative Mike Rogers (R-MI) and Senator Mike Crapo (R-ID) have proposed legislation that would create healthcare savings accounts (HSAs) for Medicaid beneficiaries. The bill would create experimental accounts in 10 states that would volunteer for the program for five years. Federal and state governments would put up to $2,500 per adult and up to $1,000 per child into the savings accounts, which beneficiaries could use to pay for their healthcare. Under the proposal, states also could impose a deductible of 10% of the savings account limit on recipients whose costs exceed the limit. According to Rogers, the measure would encourage Medicaid beneficiaries to seek less-expensive healthcare, resulting in long-term savings for the health program. However, critics have said HSAs could make healthcare less affordable for low-income US residents (Gannett/Detroit Free Press, 10/11).

Read more, http://www.freep.com/news/nw/health11e_20051011.htm




>> Amendments


* The House and Senate will be in session this week. The House will be taking up the Personal Responsibility in Food Consumption Act of 2005 (HR 554), while the Senate will be focusing on the Transportation, Treasury, Housing and Urban Development, the Judiciary, the District of Columbia, and Independent Agencies Appropriations Act of 2006 (HR 3058) sent over from the House, and presidential nominations.

* Majority Leader Says Senate will be done by Thanksgiving. Despite a massive workload that includes unfinished appropriations bills, two huge spending- and tax-cut packages, hurricane recovery legislation and a Supreme Court nomination, Majority Leader Bill Frist (R-TN) says the Senate will definitely adjourn for the year by Thanksgiving.

* The CRNA-PAC Committee requests all CRNAs who've received their annual dues statement to be sure to remember the CRNA-PAC Dues Checkoff option. Members' support of CRNA-PAC helps keep the nurse anesthesia profession's voice strong in Washington! For further information, email info@aanadc.com.

* For up-to-date Congressional floor & committee schedule information, see http://thomas.loc.gov/.




>> For More Information


The AANA Federal Government Affairs Hotline is published for the nurse anesthetist members of AANA each week Congress is in session by the AANA Office of Federal Government Affairs, Washington DC, 202-484-8400, info@aanadc.com, Frank Purcell, Senior Director. C 2005 American Association of Nurse Anesthetists.