FEDERAL HEALTH UPDATE
July 24, 2009

Produced by Kate Connelly Theroux in collaboration with the Institute of Federal Health Care (IFHC)

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Executive and Congressional News

  • The House passed H.R. 2632, the Korean War Veterans Recognition Act, on July 21, 2009.

  • On July 22, 2009, President Obama held a press conference in which he defended his health care reform plans, as public polls show increasing doubts about the impact of widespread changes to the health-care system.

    Before he took questions from reporters, President Obama shared stories of Americans who either have no access to health care or cannot afford health care to emphasize the need to reform the current system. He also reiterated his belief that reforming American’s health care system is the essential for the nation’s economic recovery.

  • On July 23, 2009, Senate Majority Leader Harry Reid (Nev.) confirmed that the Senate would not pass health care reform legislation before the August recess. Senator Reid did say that he thought the Finance Committee would vote on its bill before the Aug. 7 break begins.

  • Earlier, on July 17, 2009, the House Education and Labor and Ways and Means Committees voted to approve a plan for the biggest overhaul of the U.S. health-care system in forty years.

    The legislation includes a surtax of as much as 5.4 percent on the nation’s wealthiest households to pay for it. In addition, the legislation would require companies to provide health insurance or pay an 8 percent payroll tax to help pay for their coverage by the government plan.

    The bill prohibits insurance companies from establishing any lifetime or annual ceiling on benefits and limits companies from charging higher rates because of health status, gender or other reasons. Premiums would be allowed to vary only based on age, geography and family size.

    In addition, Medicare would be overhauled to reward the efficiency of health-care services, not the volume, as is the case now. The so-called “doughnut hole,” or coverage gap in the Medicare program that provides drugs to seniors, would be eliminated.

    The plan would cost about $1 trillion over 10 years and reduce the number of uninsured by roughly 37 million Americans, according to a preliminary analysis by the Congressional Budget Office.

    The legislation must now be voted on by the Energy and Commerce Committee, which began debate on July 17 but postponed further mark-up of the bill.

    Military Health Care News

  • The Department of Defense (DoD) published a final rule in the July 17, 2009 Federal Register, which authorizes coverage for forensic examinations provided in civilian health care facilities (e.g., civilian rape crisis facilities) following sexual assault or domestic violence, which is consistent with the services that are authorized in Military Medical Treatment Facilities for all beneficiaries who are victims of sexual assault or domestic violence.

    The final rule implements section 701 of the John Warner National Defense Authorization Act for FY 2007, Public Law 109-364. This legislation amended Title 10 of the United States Code (U.S.C.), Chapter 55, Section 1079(a) by authorizing coverage for forensic examinations following a sexual assault or domestic violence for eligible beneficiaries. This rule is effective Aug. 17, 2009, and applies to services provided on or after Oct. 17, 2006.

  • In the July 20, 2009, Federal Register, the Department of Defense’s Office of Assistant Secretary (Health Affairs) announced the next meeting of the Uniform Formulary Beneficiary Advisory Panel will be held on July 30, 2009, at Naval Heritage Center Theater in Washington, D.C.

    The purpose of the meeting is to allow the panel to review and comment on recommendations made to the director, TRICARE Management Activity, by the Pharmacy and Therapeutics Committee regarding the Uniform Formulary.

  • On July 20, 2009, the Department of Defense announced the 2009 Secretary of Defense Employer Support Freedom Award recipients.

    The award represents the highest recognition given by the U.S. government to employers for their outstanding support of their employees who serve in the National Guard and Reserve.

    The 2009 recipients are:

    • AeroDyn Wind Tunnel LLC – Mooresville, N.C.
    • AstraZeneca International – Wilmington, Del.
    • Cambridge, MA Fire Department – Cambridge, Mass.
    • Consolidated Electrical Distributors, Inc. – Westlake Village, Calif.
    • First Data Corporation – Greenwood Village, Colo.
    • FMC Technologies – Houston, Texas
    • Jackson Parish Sheriff’s Department – Jonesboro, La.
    • Marks, O’Neil, O’Brien & Courtney, P.C. – Philadelphia, Pa.
    • Microsoft Corporation – Redmond, Wash.
    • Mid America Kidney Stone Association – Kansas City, Mo.
    • NetJets – Woodbridge, N.J.
    • Ohio Department of Public Safety – Columbus, Ohio
    • Perpetual Technologies, Inc. – Indianapolis, Ind.
    • Santa Ana Police Department – Santa Ana, Calif.
    • TriWest Healthcare Alliance – Phoenix, Ariz.

    A record 3,200 National Guard and Reserve members or their family members from across the country nominated their employers for the Freedom Award this year. A national selection board comprised of senior Defense officials and business leaders selected the recipients. The Freedom Award will be presented to these employers during a formal ceremony Sept. 17, 2009, at the Ronald Reagan Building and International Trade Center in Washington, D.C.

    The Freedom Award was instituted in 1996 under the auspices of the National Committee for Employer Support of the Guard and Reserve to recognize exceptional support from the employer community.

  • A recent article in The Journal of Trauma examines the effectiveness of military eye protection to reduce the rate of eye injuries in service members deployed to Iraq (OIF) and Afghanistan (OEF).

    The article, published by Brooke Army Medical Center (BAMC) at Fort Sam Houston, Texas, is based on research evaluating the rate of eye injuries in OIF and OEF. Researchers sought to determine if education on the use of eye protection was related to a decrease in the rate of eye injuries. This study was based on data in the Joint Theater Trauma Registry (JTTR), which was established for the explicit purpose of collecting medical data on injuries in OIF and OEF.

    3,276 service members, who were injured during March 2003 to September 2006, were included in the study. 605 service members reported that they had not been wearing eye protection; and 26 percent of them sustained an eye injury. 2,671 service members reported that they had been wearing eye protection; and 17 percent of them sustained an eye injury.

    After an intense education program on eye protection, the rate and severity of eye injuries decreased in service members who were wearing eye protection. This study demonstrates that the military eye protection currently being used in OIF and OEF resulted in significantly fewer injuries and less severe injuries. In addition, it appeared that educational programs were successful in increasing compliance with eye protection.

  • For the sixth time and for the fourth consecutive year, Madigan Army Medical Center was named among the “100 Most Wired Hospitals and Health Systems” by The Most Wired Survey and Benchmarking study.

    This annual survey is conducted by Hospitals and Health Networks magazine, the journal of the American Hospital Association. The survey measures the use of information technology at 1,314 hospitals nationwide for quality, customer service, public health and safety, business processes and workforce issues — the survey’s definition of “wired.”

    One of Madigan’s most cutting-edge capabilities was the launch of MiCare, the Military Health System’s pilot electronic personal health record. Beneficiaries who opt to join the MiCare program can take personal medical information from the MHS electronic medical record, AHLTA, and put the information into their own personal health record with the ability to control and own it. According to a Madigan official, about 500 patients at Madigan have participated in MiCare.

    Over the past year, Madigan installed a wireless infrastructure for staff and health care providers enabling them network and data access using their laptop and tablet personal computers.

  • Army Lt. Col. Michelle Munroe, a Madigan Army Medical Center nurse midwife, is the recipient of the 2009 Daughters of the American Revolution (DAR) Anita Newcomb McGee/U.S. Army Nurse of the Year awards.

    Munroe is the chief of Madigan’s Nurse Midwifery Service. She received the award primarily for the work she did integrating an evidence-based teamwork system called Team STEPPS (Team Strategies and Tools Enhance Performance and Patient Safety) into many of the medical units deployed to Iraq in 2008.

    The program optimizes patient outcomes by improving communication and other teamwork skills among health care professionals promoting a culture of safety. Team STEPPS has contributed to providing a better level of care for patients, Munroe said.

    In addition, Munroe has taken an active role increasing Madigan’s nurse midwifery services. Nurse midwives specialize in low-risk pregnancies and natural childbirth.

    The Anita Newcomb McGee Award honors the memory of Dr. McGee, who organized the Army Nurse Corps during the Spanish-American War. The award is sponsored yearly by the DAR.

    It is given to an active duty Army Nurse Corps officer, with the grade of captain or above in a career status and selected by Army Surgeon General as the “U.S. Army Nurse of the Year.”

    Munroe joins Col. Elizabeth Mittelstaedt, the chief of Madigan’s Consolidated Education as the only other Anita Newcomb McGee/“U.S. Army Nurse of the Year” recipient working at Madigan.

  • On July 22, 2009, the Defense Health Information Management Systems (DHIMS) Program Office announced the launch of a new and improved Web site available at http://dhims.health.mil.

    The Web site is described as a one-stop clearinghouse for informative and educational resources related to the DHIMS program office, program operations and current and future initiatives. It employs a "user-friendly interface", which allows visitors to quickly access information about the history of electronic medical records (EHR); the policy that mandates a longitudinal EHR; DHIMS product information; product spotlights; and a press room complete with a DHIMS public briefings, archive photo gallery, news articles and press releases.

    The DHIMS Program Office is a part of the Department of Defense, Office of Assistant Secretary of Defense for Health Affairs. It provides information management and IT solutions that capture, manage and share health care data for the military’s electronic health record.

  • The U.S. Army Medical Command (MEDCOM) and Office of the Surgeon General has awarded General Dynamics Corp. a $9.2 million contract to support the Army MEDCOM Lean Six Sigma Concepts and Methodologies program.

    The three-year award calls for General Dynamics Information Technology to provide instruction and consulting services to internal organizations for MEDCOM’s director of strategy and innovation. General Dynamics Information Technology will offer its organizational capabilities, traditionally used with supply chain management, to MEDCOM to achieve the mission success of promoting, sustaining and enhancing soldier health. http://washingtontechnology.com/articles/2009/07/07/gd-consulting-services-to-army-medics.aspx

  • On July 20, 2009, Health Net Inc. filed a protest over the loss of the TRICARE military health care contract in the North Region.

    The Department of Defense (DoD) awarded the $2.8 billion annual TRICARE contract for the North Region to Aetna Inc., effective April 1. The almost six-year contract to provide care to more than 3 million military beneficiaries, retirees and dependents in 23 states and the District of Columbia is worth almost $17 billion.

    Health Net Federal Services, the company’s military health care division, alleges Aetna had an unfair advantage in the bidding process because the DoD posted Health Net’s bid price on the Internet.

    Health Net complained about the breach but was told following an investigation that federal officials don’t believe it affected the procurement process. The protest was filed Monday because Health Net had 10 days to file a complaint.

    A meeting on the merits of the decision itself is scheduled between the company and federal officials July 23, 2009.

    Health Net could file another protest on those grounds. The deadline is Tuesday.

  • Humana Military Healthcare Services has filed a protest with the U.S. Government Accountability Office over a multibillion-dollar contract it lost to continue providing health benefits for soldiers and their families under the U.S. Defense Department’s TRICARE program.

    A news release from Humana Inc. said the protest cites “discrepancies between the award criteria and procedures prescribed in the request for proposals issued by the Department of Defense (DoD) and those that appear to have been used by the DoD in making its contractor selection.”

    The TRICARE contract was awarded last week to UnitedHealth Military & Veterans Services, a division of Minnetonka, Minn.-based UnitedHealth Group Inc., a new participant in the TRICARE program.

    The contract is valued at as much as $21.8 billion, according to the DoD. It consists of a 10-month transition period, which was set to begin on Sept. 1, and five one-year options. The amount of the initial award is $3.7 billion, which include the transition period and a one-year option period.

    Humana Military has served as a TRICARE contractor since 1996. Under its existing TRICARE contract, Humana Military provides managed care services for about 3 million active-duty soldiers, their dependents and retired service members and their families in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee and Texas. That contract is set to expire March 31, 2010.

    The GAO has up to 100 days from the date the protest is filed to make a determination regarding the contract award. The agency could recommend that TRICARE rebid the contract because it did not follow statutes and regulations related to the award; it could dismiss Humana’s claim for procedural reasons; or it could determine that TRICARE followed the proper guidelines in awarding the contract to United Military.

    In rare cases, the agency might recommend that the contract be given to one of the losing bidders.

Veterans Health Care News

  • The Department of Veterans Affairs (VA) announced that it will temporarily halt 45 information technology projects which are either behind schedule or over budget. These projects will be reviewed, and it will be determined whether these projects should be continued.

    VA Secretary Eric Shinseki ordered a review of the department’s 300 IT projects and implementation of the Project Management Accountability System (PMAS), designed to increase the department’s accountability for IT projects.

    Each of the 45 projects identified will be temporarily halted. No further development will occur and expenditures will be minimized. A new project plan that meets the requirements of PMAS must be created by the project manager and approved by VA’s assistant secretary for information and technology before resuming.

    PMAS is a management protocol that requires projects to establish milestones to deliver new functionality to its customers. Failure to meet set deadlines indicates a problem within the project. Under PMAS, a third missed customer delivery milestone is cause for the project to be halted and re-planned.

    PMAS, in conjunction with the analytical tools available through the IT Dashboard, will ensure early identification and correction of problematic IT projects. The IT Dashboard, launched last month, is a one-stop clearinghouse of information, allowing the American people to track federal information technology initiatives and hold the government accountable for progress and results.

    Over the next year, all IT projects at VA will be required to move to PMAS.

  • The Department of Veterans Affairs (VA) published a final rule in the July 17, 2009, Federal Register, which eliminates the requirement for prior signature consent and pre- and post-test counseling for HIV testing at VA facilities.

    Before ordering an HIV test, VA clinical providers will no longer be required to have patients sign a form, either in hard copy or via iMed Consent electronic pads. However, clinicians should obtain verbal consent from patients for HIV testing and document consent in their medical record, as outlined in VHA Handbook 1004.1 (Informed Consent for Clinical Treatments and Procedures).

    Before obtaining verbal consent for HIV testing, clinicians should provide patients with appropriate educational materials geared to their specific needs, rather than the previously required pretest counseling information on VA form 10-0121d. A selection of educational materials is now available on the VA HIV Web site. The VA will provide more details on specific procedures to be followed when considering HIV testing and before the new rule goes into effect, on Aug. 17, 2009.

    The new policy is in keeping with a wider strategy to conform VA policy and practice to guidelines outlined in the 2006 recommendations of the Centers for Disease Control and Prevention (CDC) on HIV testing in healthcare settings, as well as to other recommended public health practices.

    The 2006 CDC guidelines recommend offering HIV testing to all patients as part of routine healthcare rather than just to those patients at known risk for HIV infection, without requiring separate written consent for HIV testing.

Health Care News

  • Four Cabinet Secretaries hosted a rural health community forum on July 21 in St. John Parish, La., to share information about the federal government’s efforts to rebuild and revitalize rural America.

    This is the next leg of a tour launched by President Obama, showcasing how communities, states and the federal government can work together to help strengthen rural America.

    The Secretaries for the Departments of Health and Human Services, Agriculture, Labor and Veterans Affairs listened to local residents give their perspectives and discuss solutions to the challenges facing rural communities during the 90-minute community forum.

    In June, President Obama announced that top officials from his administration would visit communities across the nation to discuss how to strengthen rural America. The community forums allow the Cabinet Secretaries to hear directly from people living in rural communities and advise the President on best ways to support their needs.

    The forums provide for direct public input on how to build a more healthy American economy, which depends on a prosperous rural America. Rural America supplies much of our nation’s food, safeguards the environment, cultivates a vibrant small business sector, and plays a growing role in science, innovation and energy independence.

    Rural Tour events have also been held in Pennsylvania, New Hampshire and Michigan. Future events are currently scheduled in Alaska, Nebraska, New Mexico, North Carolina, Wisconsin and Ohio.

  • The U.S. Food and Drug Administration announced that it has approved a vaccine for 2009-2010 seasonal influenza in the United States.

    The seasonal influenza vaccine will not protect against the 2009 H1N1 influenza virus that resulted in the declaration of a pandemic by the World Health Organization (WHO) on June 11, 2009. The FDA continues to work with manufacturers, international partners and other government agencies to facilitate the availability of a safe and effective vaccine against the 2009 H1N1 influenza virus.

    Each year, experts from the FDA, WHO, U.S. Centers for Disease Control and Prevention (CDC), DoD and other institutions study virus samples and patterns collected from around the world in an effort to identify strains that may cause the most illness in the upcoming season.

    Based on those forecasts and on the recommendations of the FDA’s Vaccine and Related Products Advisory Committee, the FDA determines the three strains that manufacturers should include in their vaccines for the U.S. population.

    The vaccine for the 2009-2010 seasonal influenza contains:

    • an A/Brisbane/59/2007 (H1N1)-like virus
    • an A/Brisbane/10/2007 (H3N2)-like virus
    • a B/Brisbane/60/2008-like virus

    Even if the recommendations fail to produce the optimal match between the virus strains, the vaccine may reduce the severity of the illness or may help prevent influenza-related complications.

    According to the CDC, between 5 percent and 20 percent of the U.S. population develops influenza each year. More than 200,000 are hospitalized from its complications and about 36,000 people die. Older people, young children, and people with chronic medical conditions are at higher risk for influenza-related complications. Vaccination of these groups is critical.

    The National Institute of Allergy and Infectious Diseases (NIAID) is using its vaccine clinical trials infrastructure to launch a study of vaccine for pandemic H1N1 virus.

    Initial studies will look at whether one or two 15 microgram doses of H1N1 vaccine are needed to induce a potentially protective immune response in healthy adult volunteers (aged 18 to 64 years old) and elderly people (aged 65 and older). Researchers also will assess whether one or two 30 microgram doses are needed. The doses will be given 21 days apart, testing two manufacturers’ vaccines (Sanofi Pasteur and CSL Biotherapies). If early information from those trials indicates that these vaccines are safe, similar trials in healthy children (aged 6 months to 17 years old) will begin.

    A concurrent set of trials will look at the safety and immune response in healthy adult and elderly volunteers who are given the seasonal flu vaccine along with a 15 microgram dose of 2009 H1N1 vaccine. The H1N1 vaccine would be given to different sets of volunteers either before, after, or at the same time as the seasonal flu vaccine. If early information from those studies indicates that these vaccines are safe, similar trials in healthy children (aged 6 months to 17 years old) will start.

    A panel of outside experts will conduct a close review of the safety data from these trials to spot any safety concerns in real time. Information from these studies in healthy people will help public health officials develop recommendations for immunization schedules, including the optimal dosage and number of doses for multiple age groups, including adults, the elderly, and children. Data may also be used to support decisions about the best recommendations for people in high risk groups, including pregnant women and people whose immune systems are weakened or otherwise compromised.

    The trials are being conducted in a compressed timeframe in a race against the possible autumn resurgence of 2009 H1N1 flu infections that may occur at the same time as seasonal influenza virus strains begin to circulate widely in the Northern Hemisphere.

  • The National Institute of Mental Health (NIMH) is launching a large-scale research project to explore whether using early and aggressive treatment, individually targeted and integrating a variety of different therapeutic approaches, will reduce the symptoms and prevent the gradual deterioration of functioning that is characteristic of chronic schizophrenia.

    The Recovery After an Initial Schizophrenia Episode (RAISE) project is being funded by NIMH with additional support from the American Recovery and Reinvestment Act (ARRA). Recovery Act funds will underwrite the initial two phases of the trial. With long-term funds committed by NIMH to complete these phases plus a full-scale clinical trial, funding for the study is $40 million.

    Despite the availability of moderately effective treatments, such as antipsychotic medications and various psychosocial interventions, people with schizophrenia often do not receive treatment until the disease is already well-established, with recurrent episodes of psychosis, resulting in costly multiple hospitalizations and disabilities that can last for decades. Periods of unemployment, homelessness and incarceration are common, making schizophrenia a costly disease for individuals, their families and the community at large.

    RAISE will test approaches that involve intervening immediately upon first diagnosis and systematically incorporating the range of options that are now available in a more piecemeal fashion to people with schizophrenia. These options include medications, psychosocial treatments and rehabilitation, including teaching patients and families how to manage the disease. The hope is that such a coordinated approach tailored to each individual and sustained over time may make lasting differences in the acceptability of treatment and overall function.

    Federal, state and local agencies and organizations — both private and public — that play a role in providing health care and other services to people with schizophrenia will have an opportunity to participate in the design of the interventions to be evaluated by RAISE. NIMH expects that, if successful, this evidence-based approach can be disseminated and adopted rapidly, thus significantly speeding the transition between research findings and their use in real-world practice. http://www.nih.gov/news/health/jul2009/nimh-21.htm

  • The average age of the world's population is increasing at an unprecedented rate, according to a new report, "An Aging World: 2008."

    The report examines the demographic and socioeconomic trends accompanying this phenomenon. It was commissioned by the National Institute on Aging (NIA), part of the National Institutes of Health and produced by the U.S. Census Bureau.

    Researchers found the number of people worldwide age 65 and older is estimated at 506 million as of midyear 2008; by 2040, that number will hit 1.3 billion. Thus, in just over 30 years, the proportion of older people will double from 7 percent to 14 percent of the total world population.

    "An Aging World: 2008" examines nine international population trends identified in 2007 by the NIA and the U.S. Department of State. "An Aging World: 2008" contains detailed information on life expectancy, health, disability, gender balance, marital status, living arrangements, education and literacy, labor force participation and retirement, and pensions among older people around the world.

    Highlights of the report include:

    • While developed nations have relatively high proportions of people aged 65 and older, the most rapid increases in the older population are in the developing world. The current rate of growth of the older population in developing countries is more than double that in developed countries, and is also double that of the total world population.
    • As of 2008, 62 percent (313 million) of the world's people aged 65 and older lived in developing countries. By 2040, today's developing countries are likely to be home to more than 1 billion people aged 65 and over, 76 percent of the projected world total.
    • The oldest old, people aged 80 and older, are the fastest growing portion of the total population in many countries. Globally, the oldest old population is projected to increase 233 percent between 2008 and 2040, compared with 160 percent for the population aged 65 and over and 33 percent for the total population of all ages.
    • The 65-and-older population in China and India alone numbered 166 million in 2008, nearly one-third of the world's total. Issues related to population aging in the world's two most populous nations will be accentuated in the coming decades as the absolute number climbs to 551 million in 2040 (329 million in China and 222 million in India).
    • Childlessness among European and U.S. women aged 65 in 2005 ranged from less than 8 percent in the Czech Republic to 15 percent in Austria and Italy. Twenty percent of women aged 40-44 in the United States in 2006 had no biologic children. These data raise questions about the provision of care when this cohort reaches advanced ages.

  • The U.S. Food and Drug Administration announced that a laboratory analysis of electronic cigarette samples has found that they contain carcinogens and toxic chemicals such as diethylene glycol, an ingredient used in antifreeze.

    Electronic cigarettes, also called “e-cigarettes,” are battery-operated devices that generally contain cartridges filled with nicotine, flavor and other chemicals. The electronic cigarette turns nicotine, which is highly addictive, and other chemicals into a vapor that is inhaled by the user.

    These products are marketed and sold to young people and are readily available online and in shopping malls. In addition, these products do not contain any health warnings comparable to FDA-approved nicotine replacement products or conventional cigarettes. They are also available in different flavors, such as chocolate and mint, which may appeal to young people.

    Because these products have not been submitted to the FDA for evaluation or approval, at this time the agency has no way of knowing, except for the limited testing it has performed, the levels of nicotine or the amounts or kinds of other chemicals that the various brands of these products deliver to the user.

    The FDA’s Division of Pharmaceutical Analysis analyzed the ingredients in a small sample of cartridges from two leading brands of electronic cigarettes. In one sample, the FDA’s analyses detected diethylene glycol, a chemical used in antifreeze that is toxic to humans, and in several other samples, the FDA analyses detected carcinogens, including nitrosamines. These tests indicate that these products contained detectable levels of known carcinogens and toxic chemicals to which users could potentially be exposed.

    The FDA has been examining and detaining shipments of e-cigarettes at the border and the products it has examined thus far meet the definition of a combination drug-device product under the Federal Food, Drug, and Cosmetic Act. The FDA has been challenged regarding its jurisdiction over certain e-cigarettes in a case currently pending in federal district court. The agency is also planning additional activities to address its concerns about these products.

    Health care professionals and consumers may report serious adverse events (side effects) or product quality problems with the use of e-cigarettes to the FDA's MedWatch Adverse Event Reporting program online, by regular mail, fax or phone.

  • The Substance Abuse and Mental Health Services Administration (SAMHSA) released a new publication to help communities better develop comprehensive prevention strategies based on their unique needs and characteristics and using cost-benefit ratios.

    The report draws on the data and methods of recent substance abuse costs and cost savings studies and relies heavily on two systematic evaluations of cost- savings estimates, adds new analyses. These cost-savings analyses show that savings from substance abuse prevention generally exceed the costs of prevention programs.

  • The Centers for Medicare and Medicaid Services (CMS) has launched a new Web site (www.ContinuationCoverage.net) and helpline (1-866-400-6689) where certain unemployed workers may request expedited review of a denial by their former employers of eligibility for COBRA premium assistance under the American Recovery and Reinvestment Act of 2009 (ARRA).

    CMS has also contracted with MAXIMUS Federal Services, Inc. to review requests for expedited review of denials and make recommendations — subject to CMS’s review — on whether individuals are eligible for health insurance premium assistance under the Recovery Act’s expansion of COBRA continuation coverage. Maximus will also answer questions about the premium assistance program and the expedited review process.

    To help displaced workers maintain health care coverage for themselves and their families, the Recovery Act provides a 65 percent subsidy for health insurance premiums for workers who have elected COBRA after they have been involuntarily terminated from their jobs. “COBRA coverage” generally refers to the continuation of coverage provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), which apply to employers with twenty or more employees. The ARRA-established subsidy is also available to eligible federal, state, and local government employees, and, if state law requires certain continuation coverage, to workers for private sector employers with fewer than twenty employees.

    The Recovery Act’s premium assistance applies to periods of continuation coverage beginning on or after Feb. 17, 2009 (when ARRA became law), and lasts for up to nine months.

    To qualify for premium assistance, a worker must be involuntarily terminated between Sept. 1, 2008, and Dec. 31, 2009, and elect continuation coverage. The subsidy ends when the worker is offered any new employer-sponsored health care coverage or becomes eligible for Medicare. Workers who were involuntarily terminated between Sept. 1, 2008, and Feb. 16, 2009, but who failed to elect COBRA coverage at that time, most likely because it was unaffordable, or who elected COBRA after Sept. 1, 2008, but let it drop because it was unaffordable, would be given an additional 60 days after employer notifications are released to elect COBRA and receive the subsidy.

    Depending on actions taken by their states, individuals with state continuation coverage may also be eligible for this additional election period. To ensure that the premium assistance is targeted at workers who are most in need, the subsidy generally will be available only to people whose income does not exceed $125,000 for individuals ($250,000 for families).

    When an individual’s former group health plan denies access to ARRA’s premium assistance, he or she may request an expedited review of the denial. Under the law, CMS handles requests for review for all federal government employees, employees of state and local governments and those individuals covered by certain state continuation coverage laws (sometimes called “mini-COBRA” programs) that apply to employers with fewer than 20 employees. Decisions on appeals will be made within 15 business days after receipt.

Reserve/Guard

  • As of July 14, 2009, the total number of Guard and Reserve currently on active duty has increased by 86 to 143,253. The totals for each service are Army National Guard and Army Reserve 111,226; Navy Reserve, 6,514; Air National Guard and Air Force Reserve, 16,498; Marine Corps Reserve, 8,313; and the Coast Guard Reserve, 702. www.defenselink.mil

Reports/Policies

  • The GAO published “Food and Drug Administration: FDA Faces Challenges Meeting Its Growing Medical Product Responsibilities and Should Develop Complete Estimates of Its Resource Needs,” (GAO-09-581) on June 19, 2009. In this report, GAO examined trends in FDA's funding and staffing resources for its medical product oversight responsibilities from fiscal years 1999 through 2008; and FDA's medical product oversight responsibilities during this same period. http://www.gao.gov/new.items/d09581.pdf

  • The GAO published “Improper Payments: Responses to Posthearing Questions Related to Eliminating Waste and Fraud in Medicare and Medicaid,” (GAO-09-838R) on July 20, 2009. In this letter report, the GAO identified the biggest challenge facing CMS to provide an estimate for improper payments under Medicare Part D; the problems with the current process for reviewing and paying Medicare claims that would make the program more vulnerable to fraudulent claims; the reasons why CMS cannot include penalties in its Medicare Administrative Contractor contracts for paying improper or fraudulent claims. http://www.gao.gov/new.items/d09838r.pdf

  • The Institute of medicine (IOM) published “Global Environmental Health: Research Gaps and Barriers for Providing Sustainable Water, Sanitation, and Hygiene Services,” on July 16, 2009. This report summarizes the Roundtable on Environmental Health Sciences, Research, and Medicine’s workshop held on October 17-18, 2007. The workshop outlined needs to bridge the gap between research and community action and focused on challenges and potential solutions to ensure the future availability of quality water.

  • The Congressional Budget Office (CBO) published its cost estimate for “H.R. 3200, America's Affordable Health Choices Act of 2009,” on July 18, 2009. In its analysis, the CBO estimated the number of nonelderly people without health insurance would be reduced by about 37 million by 2019, leaving about 17 million nonelderly residents uninsured (nearly half of whom would be unauthorized immigrants). In total, CBO estimates that enacting those provisions would raise deficits by $1,042 billion over the 2010-2019 period. http://www.cbo.gov/doc.cfm?index=10464

Legislation

  • H.R.3261 (introduced July 20, 2009): To permit an individual to be treated by a health care practitioner with any method of medical treatment such individual requests, and for other purposes was referred to the House Committee on Energy and Commerce.
    Sponsor: Representative Dan Burton [IN-5]
  • H.R.3262 (introduced July 20, 2009): To ensure that the goals of the Dietary Supplement Health and Education Act of 1994 are met by authorizing appropriations to fully enforce and implement such Act and the amendments made by such Act and for other purposes was referred to the House Committee on Energy and Commerce.
    Sponsor: Representative Dan Burton [IN-5]
  • H.R.3279 (introduced July 21, 2009): To amend title 38, United States Code, to establish in the Department of Veterans Affairs centers of excellence for rural health research, education, and clinical activities, and for other purposes was referred to the House Committee on Veterans' Affairs.
    Sponsor: Representative Ciro D. Rodriguez [TX-23]
  • H.R.3282 (introduced July 21, 2009): To direct the Secretary of Veterans Affairs to provide certain veterans with readjustment and mental health care services and for other purposes was referred to the House Committee on Veterans' Affairs.
    Sponsor: Representative Ciro D. Rodriguez [TX-23]
  • H.R.3286 (introduced July 22, 2009): To amend the Public Health Service Act to fund breakthroughs in Alzheimer's disease research while providing more help to caregivers and increasing public education about prevention was referred to the House Committee on Energy and Commerce.
    Sponsor: Representative Edward J. Markey [MA-7]
  • H.R.3293 (introduced July 22, 2009): Making appropriations for the Departments of Labor, Health and Human Services, and Education, and related agencies for the fiscal year ending September 30, 2010, and for other purposes was placed on the Union Calendar.
    Sponsor: Representative David R. Obey [WI-7]
  • S.1473 (introduced July 20, 2009): A bill to catalyze change in the care and treatment of diabetes in the United States was referred to the Committee on Health, Education, Labor, and Pensions.
    Sponsor: Senator Kay Hagan [NC]
  • S.1488 (introduced July 21, 2009): A bill to extend temporarily the 18-month period of continuation coverage under group health plans required under COBRA continuation coverage provisions so as to provide for a total period of continuation coverage of up to 24 months was referred to the Committee on Health, Education, Labor, and Pensions.
    Sponsor: Senator Roland Burris [IL]
  • S.1492 (introduced July 22, 2009): A bill to amend the Public Health Service Act to fund breakthroughs in Alzheimer's disease research while providing more help to caregivers and increasing public education about prevention was referred to the Committee on Health, Education, Labor, and Pensions.
    Sponsor: Senator Barbara A. Mikulski [MD]
  • S.1503 (introduced July 22, 2009): A bill to establish grants to provide health services for improved nutrition, increased physical activity, obesity and eating disorder prevention, and for other purposes was referred to the Committee on Health, Education, Labor, and Pensions.
    Sponsor: Senator Kirsten E. Gillibrand, [NY]

Hill Hearings

  • The Senate Veterans Affairs Committee will hold a hearing on July 29, 2009, examine veteran's disability compensation.
  • The House Veterans Affairs Committee will hold a hearing on July 30, 2009, to examine the implications of VA’s limited scope of Gulf War illness research.

Meetings / Conferences


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