FEDERAL HEALTH UPDATE
November 21, 2008

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Congressional Schedule
  • President-elect Barack Obama has selected former Senate Majority Leader Tom Daschle (D-S.D.) to become the new Health and Human Secretary in Obama¡¦s administration.

Military Health Care News

  • On Nov. 19, 2008, TRICARE Management Activity (TMA) announced that it will reduce the rates for TRICARE Reserve Select (TRS).? Effective Jan. 1, 2009, monthly premiums for TRS individual coverage will drop 44 percent from $81.00 to $47.51, and TRS family coverage will drop 29 percent from $253.00 to $180.17.

    The 2009 National Defense Authorization Act (NDAA), section 704, required TRICARE to analyze Reserve Select costs from 2006 and 2007, and set new rates for 2009.

    Established in 2005, TRS is a premium-based health plan for National Guard and Reserve personnel available for purchase by members of the Selected Reserve who are not eligible for or enrolled in Federal Employee Health Benefit plans.

    TRS provides a health plan option to members of the Selected Reserve and their families when they are not on active duty status. The TRS plan delivers coverage similar to TRICARE Standard and Extra to eligible members who purchase the coverage and pay monthly premiums. TRS also features continuously open enrollment.? http://www.tricare.mil/Pressroom/News.aspx?fid=480

  • The Department of Defense launched the National Resource Directory, a collaborative effort between the departments of Defense, Labor and Veterans Affairs.

    The National Resource Directory is a Web-based network of care coordinators, providers and support partners with resources for wounded, ill and injured service members, veterans, their families, families of the fallen and those who support them.

    It offers more than 10,000 medical and non-medical services and resources to help service members and veterans achieve personal and professional goals along their journey from recovery through rehabilitation to community reintegration.

    The directory will be a valuable tool for wounded, ill and injured service members and their families as they navigate through the maze of benefits and services available to them in their transition to civilian life.

    The National Resource Directory is organized into six major categories: Benefits and Compensation; Education, Training and Employment; Family and Caregiver Support; Health; Housing and Transportation; and Services and Resources. It also provides helpful checklists, Frequently Asked Questions, and connections to peer support groups. All information on the Web site can be found through a general or state and local search tool.? http://www.health.mil/Press/Release.aspx?ID=429

  • The Warrior and Family Support Center, located near Brooke Army Medical Center (BAMC), will be expanded to serve soldiers and their families who visit the center.? The center is used by families of wounded soldiers being treated at BAMC

    A new, $4 million, 12,000-square-foot facility, which was privately funded, is slated to open Dec. 1, 2008.? The facility will have its own dining room plus a great room, a classroom, a video game room and, overall, a lot more room.

    The project was spearheaded as a charitable project by the owners of Huffman Developments, a Texas-based building company. Estimates for the project were just over $3 million when it started, but the contractor solicited service members¡¦ and families¡¦ ideas on its construction and subsequent design changes increased its cost to about $4 million.? Future plans of adding a therapeutic garden and other landscaping will take the project to nearly $5 million.

    A classroom with computers will offer educational opportunities for service members and families. A donor is willing to pay tuition and books for those wishing to advance their education.

    The overall design is built with a Hill Country theme, with rock and stucco throughout and a large star as a centerpiece on the front of the building.

  • The Department of Defense published a notice in the Federal Register announcing that the next meeting of the Uniform Formulary Beneficiary Advisory Panel will be held on Jan. 8, 2008. The panel will review and comment on recommendations made to the Director, TRICARE Management Activity, by the Pharmacy and Therapeutics Committee regarding the Uniform Formulary. The meeting will be open to the public.
  • Recent changes to the Family and Medical Leave Act will extend the period of unpaid, job-protected leave that eligible family members can take to care for wounded warrior spouses.

    Legislative amendments provide new entitlements that pertain to military families and enable them to take caregiver leave.

    The Labor Department administers FMLA for private-sector workers. The changes, authorized by the National Defense Authorization Act of 2008, give military families special job-protected leave rights to care for servicemen and women who are wounded or injured and also help families of members of the National Guard and reserves manage their affairs when their service member is called up for active duty.

    One change stipulates that eligible employees who are family members of covered service members can take up to 26 work weeks of leave in a 12-month period to care for a covered service member with a serious illness or injury incurred in the line of duty while on active duty. This change extends the period of available unpaid leave beyond the original 12-week leave period. The new provision was a recommendation of the President¡¦s Commission on Wounded Warriors.

    A second family-leave-related amendment to the act makes the normal 12 work weeks of FMLA job-protected leave available to certain family members of National Guardsmen or reservists for qualifying exigencies when service members are on active duty or called to active-duty status.

    Qualifying exigencies for which employees can use FMLA leave include:

  • Short-notice deployment;
  • Military events and related activities;
  • Child-care and school activities;
  • Financial and legal arrangements;
  • Counseling;
  • Rest and recuperation;
  • Post-deployment activities, and
  • Additional activities not encompassed in the other categories by which the employer and employee can agree to the leave.

    Another change requires employees to follow their employers' call-in procedures when taking FMLA leave. Previous rules were interpreted that employees could inform employers of taking FMLA leave for up to two full business days after initiating it.

    An additional rule change allows employers¡¦ human-resource officials, leave administrators or management officials to contact employees¡¦ health care providers to verify information on medical certification forms, so long as Health Insurance Portability and Accountability Act of 1996 requirements and medical privacy regulations are met.

  • Under Secretary of Defense for Personnel and Readiness Dr. David S. Chu announced the appointment of Ms. Jane Burke as executive director of the Military OneSource Operations Office, effective November 3, 2008. Burke previously served eight years as the principal deputy of military community and family policy.

    Military OneSource provides support and assistance to service members and their families on a wide range of subjects, including education, finances, child care and relocations.

  • The Military Health System (MHS) hosted an?online town hall?on Nov. 19, 2008, as part of the ongoing dialog between senior military leaders and service members and their families about Department of Defense (DoD) medical care programs and services for wounded, ill and injured troops.? http://www.health.mil/Pages/Page.aspx?ID=20

Veterans Health Care News  

  • The U.S. Department of Veterans Affairs (VA) announced that eligible veterans will see an increase in the mileage reimbursement they receive for travel to VA facilities for medical care.?

    VA Secretary Dr. James B. Peake?announced that he will use his?authority to raise the mileage reimbursement from the 28.5 cents per mile to 41.5 cents per mile for all eligible veterans.

    Congress, which mandates such increases, recently provided funding to VA to increase the reimbursement rate.? These changes go into effect on Nov. 17, 2008.? Service-connected disabled veterans, veterans receiving VA pensions, and veterans with low incomes are eligible for the reimbursement.

    While increasing the payment, the current deductible amounts applied to certain mileage reimbursements will remain frozen at $7.77 for a one way trip, $15.54 for a round trip, and capped at a maximum of $46.62 per calendar month.??On Jan. 9, 2009, these deductibles will decrease to $3 for a one way trip, $6 for a round trip, with a maximum of $18 per calendar month.??Deductibles can be waived if they cause a financial hardship to the veteran.? http://www1.va.gov/opa/pressrel/pressrelease.cfm?id=1617?

Health Care News

  • Fewer U.S. adults smoke, but cigarette smoking continues to impose substantial health and financial costs on society, according to new data from Centers for Disease Control and Prevention (CDC).

    An estimated 19.8 percent of U.S. adults (43.4 million people), were current smokers in 2007, down from 20.8 percent in 2006, according to a study in CDC¡¬s Morbidity and Mortality Weekly Report (MMWR). However, based on the current rate of decline, it is unlikely that the national health objective of reducing the prevalence of adult cigarette smoking to 12 percent or lower will be met by 2010.

    Smoking causes at least 30 percent of all cancer deaths, including more than 80 percent of lung cancer deaths, and 80 percent of deaths from chronic obstructive pulmonary disease. Smoking is responsible for early cardiovascular disease and death. As a result, about half of all long-term smokers, particularly those who began smoking as teens, die prematurely, many in middle age.

    Another MMWR study released by CDC assessed the U.S. health consequences and productivity losses attributable to smoking.

    National estimates of annual smoking deaths indicate that, during 2000¡V2004, cigarette smoking and exposure to secondhand smoke resulted in approximately 443,000 annual premature deaths, consistent with previous estimates.

    In addition, during 2001¡V2004, average annual smoking-attributable health care expenditures were approximately $96 billion, compared to $75 billion in 1998. Accounting for direct health care expenditures and productivity losses ($97 billion), the total economic burden of smoking is approximately $193 billion per year.

  • The Department of Health and Human Services (HHS) released the second report on Personalized Health Care, which examines the potential for new findings in genetics and other molecular-level medicine to improve the quality and cost-effectiveness of health care.

    The report, ¡§Personalized Health Care: Pioneers, Partnerships, Progress,¡¨ includes reports from 10 institutions where personalized health care techniques are beginning to be used. It also includes seven commissioned papers examining the opportunities and challenges for personalized health care from the perspectives of different stakeholders in the health care sector.

    Personalized health care envisions medical care that is increasingly differentiated between patients based on variations in their individual biology. For example, differences in metabolism or other factors cause a given prescription medication to work well with some individuals, but not others. By measuring such individual variations in patients before prescribing, drugs could be used more safely, effectively and at lower cost.

    Genetic and molecular medicine should also help spot diseases before symptoms appear, enabling treatments to delay or preempt the disease and avoid costly late-stage treatments. Personal genomic profiles may also enable patients to learn their particular predisposition to disease and take more effective disease prevention steps. http://www.hhs.gov/news/press/2008pres/11/20081114a.html

  • As part of an ongoing strategy to continually improve import safeguards to meet the changing demands of a global economy, the U.S. Department of Health and Human Services (HHS) officially opened offices of its Food and Drug Administration (FDA) in Beijing, Guangzhou and Shangai in the People¡¦s Republic of China.?

    HHS Secretary Mike Leavitt and FDA Commissioner Andrew von Eschenbach, M.D. will travel to the three cities to meet with manufacturers and Chinese government officials to discuss policy and governance reforms aimed at improving the safety of food and other consumer products. They will also mark the opening of the three offices, and introduce some of the HHS/FDA officials who will work there.

    HHS is working to have an FDA presence in five geographic regions: China, India, Europe, Latin America and the Middle East. During a visit to the Middle East in October, Secretary Mike Leavitt announced that the FDA¡¦s Middle East office will be headquartered in Amman, Jordan. In June, the Secretary and other HHS and FDA officials met with government and industry leaders from Central America and Mexico at a summit on product safety in El Salvador to outline possible ways of working together more closely, including through a proposed memorandum of understanding.?

    In December 2007, the United States signed two Memoranda of Agreement on the safety of food, feed, drugs and medical devices with agencies of the Chinese government. The agreements contain a framework for closer collaboration between HHS/FDA and its Chinese counterpart agencies to help assure Chinese products under HHS/FDA jurisdiction that come to the United States will be safer. As a result, the transmission of information between the agencies of the two countries has especially improved, and they have worked more closely to address safety concerns.

    Establishing a permanent HHS/FDA presence in China will greatly enhance the speed and effectiveness of regulatory cooperation and efforts to protect consumers in both countries. HHS/FDA officials will also assist the Chinese Government, as requested, in its ongoing efforts to improve its regulatory systems for exports to help assure product safety.

    FDA has selected eight senior experienced FDA officials to work in its offices in China. The employees are inspectors and senior technical experts in foods, medicines and medical devices. The HHS/FDA office in Beijing will be located in the US Embassy.? In Guangzhou, it will be located in the U.S. Consulate General, and in Shanghai it will be part of the U.S. consular mission, but will be situated in the Shanghai Centre, a well-established business complex in the city where several other U.S. government agencies have staff.

  • The adult children of people diagnosed with inherited Alzheimer's disease are the focus of a new study to better understand the biology of the disease. Researchers are seeking 300 volunteers with a biological parent with a known genetic mutation causing rare and typically early-onset forms of the disorder to join the Dominantly Inherited Alzheimer's Disease Network (DIAN) study.

    In the six-year, $16 million study, funded by the National Institute on Aging (NIA), scientists hope to identify the sequence of brain changes in early-onset Alzheimer's, even before symptoms appear.? By understanding this process, they also hope to gain insight into the more common late-onset form of the disease.

    The vast majority of people with Alzheimer's have the late-onset form of the disease, in which symptoms of memory loss become evident at age 60 or older. Less than five percent are diagnosed with the inherited form of the disease, sometimes as early as their 30s or 40s. Until now, research into inherited early-onset Alzheimer's was hindered by the rarity of the condition and geographic distances between patients and research centers. DIAN is designed to overcome those challenges.

    Each study participant will undergo the same assessments, from genetic analysis to cognitive testing. Researchers will build a shared database of blood and cerebral spinal fluid samples and neuroimages, including MRI and PET amyloid images. These assessments, samples and images should enable researchers to determine the type and sequence of changes in the brain in early-onset inherited Alzheimer's.

  • The Centers for Medicare and Medicaid Services (CMS) reported it protected roughly $400 million of taxpayer dollars as improper payments for Medicare fee-for-service (FFS) decreased from 3.9 percent in Fiscal Year (FY) 2007 to 3.6 percent, or $10.4 billion, in FY 2008.? The Medicare, Medicaid and SCHIP improper payment rates are issued annually as part of the HHS Agency Financial Report.?

    In addition to improved Medicare FFS payments for FY 2008, CMS reports its first Medicare Advantage improper payment rate of 10.6 percent, or $6.8 billion, in payments made in Calendar Year (CY) 2006. Also being reported for the first time are the FY 2007 national composite error rates for Medicaid and for SCHIP. The Medicaid composite error rate is 10.5 percent, or $32.7 billion of which the federal share is $18.6 billion, and, for SCHIP, the rate is 14.7 percent, or $1.2 billion, with a federal share of $0.8 billion.?

    Improper payment rates include those payments that may have been paid incorrectly and do not necessarily reflect fraud. For Medicare FFS, most improper payments are due to claims for services that were medically unnecessary or incorrectly coded.? The vast majority of Medicaid and SCHIP errors are due to inadequate documentation; providers either did not submit information to support their FFS or managed care claims or did not submit additional data when requested.? Other errors are due to services provided under Medicaid or SCHIP to beneficiaries who were not eligible for either program or who were not eligible for the services received.?

    The CY 2006 rate for Medicare Advantage primarily reflects health plan errors in documenting members' diagnoses.? Improper payments due to incorrect calculations in the Medicare Advantage payment system are routinely resolved and payment adjustments are made and documentation errors improve over time.??

    Due to CMS' aggressive efforts to reduce payment errors, the Medicare FFS rate has declined from about 14 percent in 1996 to the 2008 rate of 3.6 percent. CMS expects the error rates for Medicare Advantage, Medicaid and SCHIP to decline similarly through program maturation and the agency's use of tools that include statistical sampling, medical reviews and error rate reduction plans.

    CMS continues to work with Medicare FFS contractors, health and drug plans and states to further ensure that payments for treating Medicare, Medicaid and SCHIP beneficiaries are accurate; reflect updated coverage policies; and educate providers on how to avoid errors in areas with high improper payment rates.

    To strengthen confidence in the accuracy of reported error rates, CMS also announced it is conducting an in-depth evaluation effort to review this year's Medicare FFS error rate. CMS also is developing methodologies to report the Medicare Part D error rate in the future. CMS NR 11-17-2008

Reserve/Guard
  • The total number of Guard and Reserve currently on active duty has increased by 784 from the last report to 121,041.? The totals for each service are Army National Guard and Army Reserve, 96,932; Navy Reserve, 5,823; Air National Guard and Air Force Reserve, 10,489; Marine Corps Reserve, 6,949; and the Coast Guard Reserve, 848.? www.defenselink.mil

Reports/Policies

  • The GAO published ¡§Health Information Technology: More Detailed Plans Needed for the Centers for Disease Control and Prevention's Redesigned BioSense Program,¡¨ (GAO-09-100) on Nov. 20, 2008.? The report examines the CDC¡¦s annual and long-term cost and timeline estimates and performance measures for the initial design of BioSense. http://www.gao.gov/new.items/d09100.pdf
  • The GAO published ¡§State and Local Fiscal Challenges: Rising Health Care Costs Drive Long-term and Immediate Pressures,¡¨ (GAO-09-210T) on Nov. 19, 2008.? In this report, the GAO addresses the state and local government sector's long-term fiscal challenges; rapidly rising health care costs which drive the sector's long-term fiscal difficulties; and the considerations involved in targeting supplemental funds to states through the Medicaid program during economic downturns. http://www.gao.gov/new.items/d09210t.pdf

Legislation

  • H.R.7274 (introduced Nov. 19, 2008): To amend title III of the Public Health Service Act to provide for the establishment and implementation of concussion management guidelines with respect to student athletes, and for other purposes was referred to the House Committee on Energy and Commerce.?
    Sponsor: Representative Bill Pascrell, Jr. [NJ-8]
  • H.R.7287 (introduced Nov. 19, 2008):? To amend the Public Health Service Act to establish a Wellness Trust was referred to the House Committee on Energy and Commerce.?
    Sponsor: Representative Doris O. Matsui [CA-5]
  • H.R.7294 (introduced Nov. 19, 2008): To amend title 10, United States Code, to expand the authorized concurrent receipt of disability severance pay from the Department of Defense and compensation for the same disability under any law administered by the Department of Veterans Affairs to cover all veterans who have a combat-related disability, as defined under section 1413a of such title was referred to the House Committee on Armed Services.?
    Sponsor: Representative Adam Smith [WA-9]
  • S.3708 (introduced Nov. 19, 2008):? A bill to amend the Public Health Service Act with respect to health professions education and for other purposes was referred to the Committee on Health, Education, Labor, and Pensions?
    Sponsor: Senator Hillary Rodham Clinton [NY].

Hill Hearings

  • There are no hearings scheduled this week.
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 katetheroux@fedhealthinst.org. To subscribe, please visit http://fedhealthinst.org/subscriber.cfm. To unsubscribe, please send an email to newsletter@fedhealthinst.org with UNSUBSCRIBE as the subject.

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