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FEDERAL HEALTH UPDATE

March 7, 2008

Produced by Kate Connelly Theroux in collaboration with the U.S. Medicine Institute for Health Studies (USMI)

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Congressional Schedule

  • On March 5, 2008, the House passed H.R. 1424, the Paul Wellstone Mental Health and Addiction Equity Act.  This legislation requires equity in the provision of mental health and substance-related disorder benefits under group health plans, prohibits discrimination on the basis of genetic information with respect to health insurance and employment, and contains other provisions.
  • The Senate Armed Service Subcommittee on Personnel held a hearing on March 5, 2008, to examine the findings and recommendations of the Department of Defense (DoD) Task Force on Mental Health, the Army’s Mental Health Advisory Team reports, and DoD and service-wide improvements in mental health resources, including suicide prevention, for service members and their families. 

    Senator Barbara Boxer, sponsor of the legislation that mandated the Task Force on Mental Health, testified before the committee to ask the committee to provide the DoD with all of the resources and support necessary to implement the recommendations of the Task Force. 

    Retired Navy Vice Adm. Donald C. Arthur and Dr. Shelley M. McDermid, Task Force co-chairs, testified about the findings of the Task Force and the progress the DoD has made to implement them.  The Task Force, formed in June 2006, submitted its final report to Defense Secretary Robert Gates in June 2007.

    The final panel included the service surgeons general, who testified about specific programs that are in place to help identify and treat their service members suffering from mental health issues.  In addition, they described the programs each service has to educate all service members and their families, focusing on recognizing combat stress; eliminating the stigma associated with seeking help; and knowing the resources available to treat it.

  • A series of joint House and Senate Veterans Affairs Committee hearings were held to receive legislative presentations from a number of military and veterans service organizations (MSOs and VSOs).  Additional joint hearings will be held to hear the legislative presentations from other MSOs and VSOs in the coming weeks.

Military Health Care News

  • Dynamics Research Corporation (DRC), a provider of technology services and solutions to federal and state governments, announced that it was one of 22 companies awarded a prime contract for the $5 billion TRICARE Evaluation, Analysis, Management and Support program, or TEAMS. This indefinite delivery and indefinite quantity contract with the Office of the Assistant Secretary of Defense for Health Affairs and TRICARE Management Activity has a one-year base period with nine option years. Task order RFPs are expected to begin flowing later this year.

    Under the terms of the contract, DRC will provide services to Health Affairs in support of policy development, decision support, program and project management and administration, as well as specialized studies and analysis, performance-based budgeting, financial analysis, business process improvement, functional validation and verification, information management, acquisition management, and logistical support.

  • TRICARE Management Activity (TMA) published a news release on March 5, 2008, clarifying coverage for shingles vaccine after TRICARE For Life (TFL) beneficiaries are billed for the cost of vaccine (as much as $100).  On Nov. 13, 2007, TMA announced that it covered the shingles vaccine for TRICARE beneficiaries aged 60 years and older (news release).

    According to TMA, many vaccines are a service that may be covered by Medicare only as part of its prescription drug program (Medicare Part D), while being covered only as a TRICARE medical benefit. One such example is the Zostavax vaccine for shingles. TRICARE will reimburse a medical provider for administering the Zostavax vaccine in the office as a part of the TRICARE medical benefit. Vaccines are not a part of the TRICARE pharmacy benefit because it cannot be self-administered by the patient. In these cases where it is not a medical benefit under Medicare, the only way to avoid paying the TRICARE deductible and cost share is to have both Medicare Part D and TRICARE. 

  • The U.S. Air Force Academy Hospital announced it will close its emergency room April 1 and open an acute care clinic. 

    This transition is the first stage in the conversion of the hospital to an outpatient clinic with an ambulatory surgery center. Approximately 95 percent of the patients admitted to the ER have non-emergency medical conditions. The new acute care clinic will continue to treat these patients. 

    The acute care clinic will provide acute and non-emergency care by appointment only to eligible Department of Defense (DoD) beneficiaries 24 hours a day, seven days a week. The clinic will be staffed by both military and civilian family practice physicians, assistants and nurse practitioners. It will initially operate in the existing ER location, until the 10th Medical Group's ongoing acute care clinic facility renovation project is completed. When completed, the new space will offer an improved location for clinic operations. 

  • The Naval Facilities Engineering Command (NAVFAC) awarded a $641.4 million contract to Clark/Balfour Beatty, Joint Venture, Bethesda, Md.  This contract is for design and construction of the new Walter Reed National Military Medical Center (WRNMMC) in Bethesda, Md. NAVFAC will oversee the planning and construction of the new Center.

    The establishment of the WRNMMC on the grounds of the National Naval Medical Center (NNMC) in Bethesda was mandated under the 2005 Base Realignment and Closure Act (BRAC), which recommended the realignment of Walter Reed Army Medical Center, including the relocation of all tertiary medical services to NNMC, and the renaming of NNMC as the Walter Reed National Military Medical Center (WRNMMC). BRAC law requires all services to be relocated by Sept. 15, 2011.

    The new WRNMMC medical facility complex will include a mix of new outpatient and inpatient facilities as well as extensive renovations and upgrades to the existing hospital facilities. New circulation pathways, utility tunnels, and a parking structure are also included in the plans.  It is conceptualized to be an approximately 345-bed medical center with the full range of intensive and complex specialty and subspecialty medical services, including specialized facilities for the most seriously war injured

    Supporting facilities to be built under a separate contract include non-clinical and Warrior Transition administrative spaces, barracks, a gymnasium and additional parking.

  • Deputy Secretary of Defense Robert England signed a memorandum on Feb. 26, 2008, which formally established an Armed Forces Health Surveillance Center (AFHSC).

    Health surveillance is critical to medical readiness and force health protection. One of the critical lessons learned from the first Gulf War and reinforced in Operations Iraqi Freedom and Enduring Freedom is the need for a comprehensive approach to detecting, assessing, and responding to health threats facing troops throughout a military career.

    To more effectively carry out health surveillance throughout the military, the Department of Defense has unified some strategic surveillance efforts across the Military Health System (MHS) under a single AFHSC.

    The mission of the AFHSC is to promote, maintain, or enhance the health of military and military-associated populations. Its vision is to provide relevant, timely, actionable, comprehensive health surveillance information and support to the armed forces on military and military-associated populations.

    Essential health surveillance functions of the AFHSC include:

    • Collecting, analyzing, interpreting, reporting, and archiving health surveillance data;
    • Providing timely, actionable health surveillance information to commanders, policymakers, planners, healthcare providers, researchers and others on known, emerging, and potential health threats;
    • Responding to disease outbreaks by monitoring health event data streams, coordinating investigations and assessments that cross service lines, and expanding outbreak investigations; and
    • Serving as primary proponent for health surveillance training and education

    The Secretary of the Army is the Executive Agent for the AFHSC.  The Force Health Protection Council will function as the advisory board of governors providing oversight for the new organization.  http://www.health.mil/Press/Release.aspx?ID=83

  • Pharmacy benefit manager Express Scripts Inc. announced that it has hired Jeffrey L. Hall to be the company’s new executive vice president and chief financial officer, effective April 1, 2008. Hall will replace Edward J. Stiften, who previously announced his retirement.

    Hall previously worked at KLA-Tencor, a San Jose, Calif.-based supplier of process control and yield management solutions for the semiconductor and related microelectronics industries, as chief financial officer. 

Veterans Health Care News  

  • The Department of Veterans Affairs Medical Center in Washington, D.C. (DC VAMC), announced that Dr. Richard B. Rosse, chief, psychiatry service, has been selected as one of the region’s “Top Doctors for 2008” by Castle Connolly Medical Ltd., a health care research and information company that publishes Northern Virginia Magazine

    Dr. Rosse has been selected as one of one of “America’s Top Doctors” from 2001 through 2006.  He is also the recipient of the “Thayer Award for Excellence in Medical Student Teaching” and the Department of Psychiatry “Residency Teaching Award” from Georgetown University School of Medicine.

    Castle Connolly’s “Guide to American’s Top Doctors” assists consumers in selecting the most qualified doctors and hospitals for medical treatment.  Castle Connolly updates the guide annually through a nomination and selection process.  The doctors are nominated by their peers.  The nomination is followed by a comprehensive review and verification of credentials by Castle Connolly’s research team.  Criteria for consideration include; professional qualifications, excellence in patient care, and excellence in academic medicine and research.

    Dr. Rosse received his undergraduate degree in zoology in1976; and earned his Doctor of Medicine degree in 1980 from the University of Maryland (UMd.).  He completed his residency in Psychiatry and Neurology at Georgetown Medical Center Department of Psychiatry in 1984.  Dr. Rosse served as chief of Outpatient Mental Health Services from 1998 through 1999.  He also served as chief of the Georgetown University Medical School Teaching Unit at the DC VAMC from 1986 through 1994. 

    Dr. Rosse held the position of Chief of Psychiatry, Consultation Liaison Services, at the Armed Forces Retirement Home in Washington, DC from 1994 through 1998.

  • Retired Navy Vice Adm. Daniel L. Cooper, who for nearly six years managed the Department of Veterans Affairs (VA) operation that provides disability pay, educational assistance and other financial benefits to veterans and their survivors, has announced plans to leave the Department on April 1, 2008.

    Under federal law, a search commission will be put together to present recommendations for Cooper’s successor to the Secretary to propose to the President for appointment.  The office of Under Secretary for Benefits is a non political appointment, subject to Senate confirmation and serving at the pleasure of the President.

    Cooper, sworn in April 2, 2002,strengthened outreach efforts and increased use of the Internet for such diverse tasks as processing home loan applications and giving veterans round-the-clock access to their VA-administered insurance accounts.

    Cooper also championed the use of special teams of VA employees to tackle some of the Department’s high-priority issues, such as disability claims from elderly veterans.

  • The Department of Veterans Affairs (VA) announced it is expanding its training programs for psychologists to meet the growing needs for mental health services for veterans, especially those returning from the Global War on Terror.

    VA, which has more than 11,000 mental health professionals to care for veterans, has hired more than 800 psychologists in the last three years.  Because psychology is a key part of comprehensive health care, the department anticipates an ongoing need to employ additional psychologists.

    The best resource for VA recruitment of psychologists has been the department’s own training programs.  Seventy-three percent of psychologists hired in the past two years have had VA training. 

    As a result, VA has worked with its partners among professional schools and universities to increase the number of psychologists who receive training through VA programs each year, beginning with the 2008-2009 training year.

    The new positions will include 61 internship and 98 post-doctoral fellowship positions, bringing the national number of training positions in psychology to 620 per year.

    The recently awarded positions include four new internship training programs and 26 new post-doctoral fellowship programs. In addition, 31 existing internship programs and 17 existing postdoctoral fellowship programs have been expanded.

  • On March 6, 2008, Secretary of Veterans Affairs (VA) Dr. James B. Peake announced the formation of a 10-member commission to recommend candidates for the post of Under Secretary for Benefits within the Department of Veterans Affairs.

    VA’s Under Secretary for Benefits directs nearly 15,000 employees and administers a budget of more than $45 billion dollars, mostly for disability compensation and survivors’ benefits.  The under secretary is also responsible for VA’s educational assistance, insurance program and pensions.

    The new under secretary will replace retired Navy Vice Adm. Daniel L. Cooper

    Under federal law, the search commission must recommend at least three candidates to the Secretary of Veterans Affairs, who forwards the list to the President along with any recommendations by the Secretary.

  • Veterans Affairs (VA) Secretary James B. Peake presented John Lee, director, Washington State Department of Veterans Affairs, with the Secretary’s Diamond Award. Peake made the presentation at the National Association of State Departments of Veterans Affairs Mid–Winter Conference in Washington, DC, on Feb. 25. Lee received the award for developing and managing programs that improve service to Washington’s veterans.

Health Care News

  • A finding by a team of scientists at the National Institutes of Health may explain why the flu virus is more infectious in cold winter temperatures than during the warmer months.

    At winter temperatures, the virus's outer covering, or envelope, hardens to a rubbery gel that could shield the virus as it passes from person to person, the researchers have found. At warmer temperatures — those approaching 60 degrees — the protective gel melts to a liquid phase. This liquid phase isn't tough enough to protect the virus against the elements; so the virus loses its ability to spread from person to person.

    The findings were published online March 2 in Nature Chemical Biology.  The study was a collaboration between researchers at two NIH institutes, the National Institute of Child Health and Human Development, and the National Institute on Alcohol Abuse and Alcoholism.

    Influenza viruses are usually spread from person to person through coughs and sneezes. Infection with flu virus can cause mild to severe illness and at times can lead to death.

    In October of 2007, researchers working with guinea pigs showed that animals sick with the flu were more likely to get other guinea pigs sick at colder temperatures than at warmer temperatures.

    In the current study, the NIH researchers used a sophisticated magnetic resonance technique, developed and previously tested in NIAAA's Laboratory of Membrane Biochemistry and Biophysics, to create a detailed fingerprint of how the virus's outer membrane responded to variations in temperature.  The virus's outer membrane is composed chiefly of molecules known as lipids, which does not mix with water, and includes oils, fats, waxes, and cholesterol.

  • The Agency for Healthcare Research and Quality (AHRQ) reports that the quality of health care has improved by an average 2.3 percent a year between 1994 and 2005 but has been outpaced by spending by an average of 6.7 percent over the same period, according to the Centers for Medicare and Medicaid. 

    Each year, AHRQ's companion Quality and Disparities reports update national trends in the delivery of health care. The analyses measure quality and disparities in four areas: effectiveness of care, patient safety, timeliness of care and patient centeredness.

    The 2007 reports—the 5th edition since the reports' inaugural release in 2003—show some notable gains, such as improvements in the care of heart disease patients. When measuring what portion of heart attack patients received recommended tests, medications or counseling to quit smoking, the reports found an average 5.6 percent annual improvement rate from 2002 to 2005.

    Measures of patient safety showed an average annual improvement of just one percent. That modest improvement rate reflected such measures as what portion of elderly patients had been given potentially harmful prescription drugs and how many patients developed post-surgery complications.

    The reports also showed some reductions in disparities of care according to race, ethnicity and income. Overall, however, many of the largest disparities remain.

  • Robert A. Star, M.D., has been named director of the Division of Kidney, Urologic, and Hematologic Diseases at the National Institute of Diabetes and Digestive and Kidney Diseases, by Institute Director Dr. Griffin P. Rodgers. Star has been acting director of the extramural research division since September 2006 and was appointed director Feb. 26, 2008, after a nationwide search.  As division director, Star will oversee a $400 million program of grants and contracts. 

    Star was a postdoctoral fellow at NIH in the mid-1980s before joining the faculty of the University of Texas Southwestern Medical Center in Dallas. In 1999, he returned to NIH as a senior scientific advisor for kidney disease and to run a lab studying acute kidney injury. In 2002, he became senior advisor for clinical research in the NIH Office of Science Policy and Planning. He also led training and career programs for clinical researchers and helped develop the clinical and translational science awards (CTSA).

    Star graduated summa cum laude in applied mathematics from Harvard College and cum laude from the Harvard Medical School-Massachusetts Institute of Technology Joint Program in Health Sciences and Technology. His internship and residency in internal medicine were performed at Michael Reese Hospital in Chicago.  http://www.nih.gov/news/health/mar2008/niddk-04.htm

  • The type of care given to the general population may not be as effective with urban American Indians and Alaska natives because the needs and underlying causes of health outcomes might be different for both groups, according to a new report.

    The Seattle-based Urban Indian Health Institute released findings of the Behavioral Risk Factor Surveillance System, an annual telephone survey of adults conducted by states and territories that is completed with help from the Centers for Disease Control and Prevention.

    The findings, covering 2001-05, showed nearly 30 percent of urban American Indians and Alaska natives did not have health insurance, compared with 18 percent of the general population. Also, nearly one-third of urban American Indians and Alaska natives were obese (with a body mass index greater than 30), compared with 20 percent of the general population. The report also said that while income differences played a role in explaining disparities, major differences still existed between American Indians and Alaska natives and non-American Indians and Alaska natives who were in similar income groups.

  • The Substance Abuse and Mental Health Services Administration (SAMHSA) is accepting grant applications for the Screening, Brief Intervention, Referral and Treatment (SBIRT) Medical Residency Program. 

    The primary purpose of this cooperative agreement is to develop and implement training programs to teach medical residents skills to provide evidence-based screening, brief intervention, brief treatment and referral to specialty treatment for patients who either have or are at risk for a substance use disorder. In addition, the program will promote adoption of SBIRT through delivery of training to local and statewide medical communities for wider dissemination of SBIRT practices. 

    About 95 percent of the people who have a diagnosable substance use disorder are unlikely to seek help from a treatment specialist, largely because they do not realize they have a problem.  By encouraging health care professionals to identify at-risk populations and intervene early, the burden of substance abuse on individuals and families and on our social institutions can be reduced.

    SBIRT Medical Residency Programs will train general medical physicians to provide SBIRT services and promote systemic change in residency programs by integrating SBIRT into the curriculum on a long-term basis.  This program expects to establish SBIRT training as a component of residency programs in a variety of disciplines including family medicine, internal medicine, obstetrics and gynecology, pediatrics, emergency medicine, trauma, psychiatry and others.

    It is expected that approximately $3.75 million will be available to fund up to 10 cooperative agreements. The average annual award amount is expected to be $375,000 per year for up to five years. The actual award amount may vary, depending on the availability of funds. The cooperative agreements will be awarded by SAMHSA’s Center for Substance Abuse Treatment. http://www.samhsa.gov/newsroom/advisories/0803041505.aspx

  • According to the Boston Globe, a recent study conducted by Fidelity Investments shows that a couple retiring this year will need about $225,000 in savings to cover medical costs in retirement.

    The figure, calculated for a couple age 65, is up 4.7 percent from the $215,000 estimate for 2007. It is similar to other projections for health care costs in retirement — daunting figures given that longer life spans also are requiring workers to increase retirement nest eggs.

    A separate study released last month by the Center for Retirement Research at Boston College estimated that an individual needs to go into retirement with some $102,000 earmarked just for health care coverage, while a couple needs about $206,000.

    Given current levels of retirement savings, the center said, six in 10 older workers are "at risk" of being unable to maintain their standard of living in retirement.

    The Fidelity study, which has been conducted annually since 2002, assumes workers do not have employer-sponsored retiree health care coverage. It includes expenses associated with Medicare premium payments as well as co-payments and deductibles, plus out-of-pocket prescription drug costs.

    Significant drivers of the retiree health care cost estimate's increase from 2007 to 2008 include higher unit costs (e.g., the price of a doctor's visit) and higher utilization rates for health care services (e.g., more doctor visits per person). Additional contributing factors include rising costs associated with new technologies, such as better diagnostic testing, prescription drugs and an increase in certain chronic conditions (e.g., diabetes).

  • According to a report released by AARP, pharmaceutical companies have substantially raised prices on 220 brand name prescription drugs most commonly used by people in Medicare Part D since the implementation of the drug benefit in 2006.

    AARP has studied drug prices since 2002 and reported the findings in a series of “watchdog” reports. The most recent report expands on the series by focusing its analysis on those branded prescription drugs most widely used by people enrolled in Medicare Part D.

    The report, which was produced by AARP’s Public Policy Institute (PPI), found that prices of brand name drugs most commonly used by people in Medicare Part D rose by an average of 7.4 percent in 2007 – nearly two and a half times the rate of general inflation. The report concludes that rising prices threaten consumers by increasing the likelihood of higher insurance premiums and the chance that people will fall into the Medicare coverage gap, and increasing the out-of-pocket expenses of those who find themselves in this “donut hole.”

    The average treatment cost exploded from $80 per year per prescription in 2002, to $151 in 2007. A person who took three brand name prescriptions to treat a chronic condition over this period saw an increase in their yearly costs of more than $1,600 between 2002 and 2007. The study found brand name drug prices increased far greater than general inflation since 2002, with dramatic spikes since 2006, the period when Medicare Part D was implemented.

Reserve/Guard

  • The total number of Guard and Reserve currently on active duty has increased by 287 from the last report to 96,301. The totals for each service are Army National Guard and Army Reserve, 74,573; Navy Reserve, 5,617; Air National Guard and Air Force Reserve, 7,009; Marine Corps Reserve, 8,758; and the Coast Guard Reserve, 344. www.defenselink.mil

Reports/Policies

  • The GAO published “Reprocessed Single-Use Medical Devices: FDA Oversight Has Increased, and Available Information Does Not Indicate That Use Presents an Elevated Health Risk,” (GAO-08-147) Jan. 31 and released it on March 4, 2008. In this report, the GAO addresses the single-use device (SUD) reprocessing industry—the number of reprocessing establishments, the types of devices reprocessed, and the extent to which hospitals use reprocessed SUDs; the steps FDA has taken to strengthen oversight of reprocessed SUDs, both on its own and in response to legislative requirements; and the safety of reprocessed SUDs compared with other types of medical devices. http://www.gao.gov/new.items/d08147.pdf
  • The GAO issued “Hospital Quality Data: Issues and Challenges Related to How Hospitals Submit Data and How CMS Ensures Data Reliability,” (GAO-08-555T) on March 6, 2008.  In this report, the GAO provides information on how hospitals collect and submit quality data to CMS; and how CMS works to ensure the reliability of the quality data submitted. http://www.gao.gov/new.items/d08555t.pdf

Legislation

  • H.R.5526 (introduced March 4, 2008): To direct the Secretary of Veterans Affairs to establish the Task Force on Medical Facility Improvements in Puerto Rico, and for other purposes was referred to the House Committee on Veterans' Affairs. 
    Sponsor: Representative Luis G. Fortuno [PR]
  • H.R.5527 (introduced March 4, 2008): To amend the Safe Drinking Water Act to protect the health of susceptible populations, including pregnant women, infants, and children, by requiring a health advisory, drinking water standard, and reference concentration for trichloroethylene vapor intrusion, and for other purposes was referred to the House Committee on Energy and Commerce. 
    Sponsor: Representative Maurice D. Hinchey [NY-22]
  • S.2706 (introduced March 5, 2008): A bill to impose a limitation on lifetime aggregate limits imposed by health plans was referred to the Committee on Health, Education, Labor, and Pensions. 
    Sponsor: Senator Byron L. Dorgan, Byron [ND].
  • S.2708 (introduced March 5, 2008): A bill to amend the Public Health Service Act to attract and retain trained health care professionals and direct care workers dedicated to providing quality care to the growing population of older Americans was referred to the Committee on Health, Education, Labor, and Pensions. 
    Sponsor: Senator Barbara Boxer [CA]

Hill Hearings

  • The House Veterans Affairs Subcommittee on Oversight and Investigations held a hearing on March 11, 2008, to examine the substance abuse/co-morbid disorders of veterans.
  • The House Armed Services Military Personnel Subcommittee will hold a hearing on March 12, 2008, to hear testimony on the future of the military health care system.
  • The House Veterans Affairs Subcommittee on Oversight and Investigations will hold a hearing on March 13, 2008, to examine the care of seriously wounded after in-patient care.
  • The House Armed Services Military Personnel Subcommittee will hold a hearing on March 14, 2008, to hear testimony on mental health overview.
  • The House Veterans Affairs Subcommittee on Health will hold a hearing on April 1, 2008, to examine post traumatic stress disorder (PTSD) treatment and research.
  • A Joint House and Senate Veterans' Affairs Committee hearing will be held on April 3, 2008, to receive legislative presentations from AMVETS, MOPH, GSW, FRA, TREA, MOAA, NASDVA. 

Meetings / Conferences


If you need further information on any of the items in the Federal Health Update, please contact Kate Connelly Theroux at (703) 447-3257 or by e-mail at kate@usminstitute.org. To subscribe, please visit http://usminstitute.org/subscriber.cfm. To unsubscribe, please send an email to update@usminstitute.org with UNSUBSCRIBE as the subject.

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