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July 22, 2005

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In this Issue


Senate Committee Reports Health Bills


Energy & Commerce Committee Reports Health Bills


Stem Cell Vote in the Senate Uncertain


Senate Addresses Health Information Technology


Crawford Confirmed As FDA Head


NIH Changes Proposed


Montana Judge Halts R-CALF/Border Hearing


Johanns Warns Japan on Beef Sales - Again


CA Assembly to Debate “BSE Tested” Labeling Bill


Chile Lifts Ban on U.S. Beef


Lugar Wants EPA to Speed Up Soybean Rust Fungicide Approvals


Energy, Highway Conferences Rushing to Complete By August


Corn Prices Will Rise “Significantly” Under 8-Billion Gallon RFS


House CAFTA Vote to Follow China Trade Vote


Federal Animal Health Agency Recommended By Science Panel


New Bills

 

 

Senate Committee Reports Health Bills

On July 20, the Senate Committee on Health, Education, Labor, & Pensions (HELP) reported S. 1418, the Wired for Healthcare Technology Act, and S. 1420, the Medical Device User Fee Stabilization Act.

S. 1418, sponsored by HELP Committee Chair Michael Enzi (R-WY), ranking member Ted Kennedy (D-MA), and a bipartisan group of 19 other senators, would amend the Public Health Service Act to do the following:

• establish in HHS an Office of the National Coordinator of Health Information Technology to head a program for developing a nationwide, interoperable healthcare technology system with key patient privacy provisions;

• require the HHS secretary to establish a public-private American Health Information Collaborative to advise on these activities, including the establishment of standards and the coordination of all federal spending;

• authorize grants to non-profit hospitals, physician practices, and others, as well as grants to states to make loans for purchase and operation of information technology, and;

• authorize grants to help incorporate information technology education in medical training curricula.

Many of the activities either required or authorized under the legislation are under way through HHS programs, so this legislation, in large measure, could – if enacted – reinforce the importance of those programs.

S. 1420 makes several changes to address some technical problems identified in the Medical Device User Fee program. In addition, the bill would place an 8.5% cap on increases in device user fees. The bill is believed to be widely supported by the device industry and FDA, and is expected to pass relatively easily and be enacted quickly.

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Energy & Commerce Committee Reports Health Bills

On July 20, the House Energy & Commerce Committee reported a number of health-related bills, some or all of which potentially could be considered on the House floor next week.

H.R. 3205, the Patient Safety and Quality Improvement Act, addresses concerns about medical errors. It is a bipartisan bill by Reps. Mike Bilirakis (R-FL), Nathan Deal (R-GA), Henry Waxman (D-CA), and Sherrod Brown (D-OH) that would establish patient safety organizations to collect and analyze information to understand the nature of medical errors and how to prevent them; provide limited liability protections so healthcare providers will not be concerned about reporting for fear of malpractice claims, and establish a patient safety database. Concerns about protection of patient privacy had been expressed by Waxman when an earlier version of the bill was discussed by the health subcommittee. Waxman’s support indicates these concerns were addressed in the version of the bill the committee reported.

H.R. 2355, the Health Care Choice Act by Reps. John Shadegg (R-AZ) and other Republican members, would allow companies to sell health insurance in states other than the one in which they are located. However, companies must follow the regulations of the state designated as the “primary” one regulating the company’s insurance products.

H.R. 3204, the State High Risk Pool Funding Extension Act by Reps. John Shadegg (R-AZ) and Ed Towns (D-NY), would authorize grants to states to operate high risk pools to expand availability of health insurance within the state.

H.R. 1132, the National All Schedules Prescription Electronic Reporting Act by Reps. Ed Whitfield (R-KY), Frank Pallone (D-NJ), Charlie Norwood (R-GA) and Ted Strickland (D-OH), is a compromise bill, incorporating components from legislation introduced earlier by the four members. Its purpose is to establish grant programs to help states initiate or operate statewide prescription drug monitoring programs focusing on abuse, diversion and mis-prescribing of controlled substances such as opiate pain relieving medication. States currently with programs in place have done such things as establish databases to help prevent “doctor shopping” and “prescription mills.” The legislation originally stemmed from concerns about widespread abuse and diversion of Oxycontin.

In addition, the committee reported two resolutions, one to recognize the work of America’s Blood Centers (H.Res. 220) and one to encourage the Centers for Medicare and Medicaid Services (CMS) to continue, for an additional year, the current demonstration program to reimburse for quality cancer care.

 

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Stem Cell Vote in the Senate Uncertain

The possibility of a Senate floor vote next week on stem cell legislation is uncertain following intense discussion this week. In a new twist, Senate Labor-HHS appropriations subcommittee Chair Arlen Specter (R-PA) threatened Thursday to attach his bill to the FY06 Labor-HHS appropriations bill. While Specter has made similar threats before, he appears to be considering this a real possibility. At risk is a Bush veto of the entire spending bill.

Specter raised the amendment possibility after talks with Senate Majority Leader Bill Frist (R-TN) to bring Specter’s version of the May House-passed bill to the floor for a straight vote stalled. Recent discussions to include this bill in a series of six floor votes on and restricted expansion of current stem cell policy and anti-cloning legislation have raised concerns this would siphon votes away from the Specter bill.

House leaders and the White House oppose the House bill, sponsored by Reps. Michael Castle (R-DE) and Diana DeGette (D-CO).

 

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Senate Addresses Health Information Technology

This week the Senate HELP Committee passed “The Wired for Health Care Quality Act,” S. 1418 by a voice vote. The bill would award demonstration grants to health professions centers and academic health centers to integrate health information technology into clinical education.

Also this week, the Senate Budget Committee held a hearing on "Health Information Technology: The Federal Role and Budget Implications," with HHS Secretary Mike Leavitt as the sole witness. He said while health IT is about lowering costs, making fewer mistakes and providing better healthcare, it is also about ensuring the U.S. is prepared for bioterrorism and pandemic threats. Leavitt said HHS is funding a lot of adaptation of IT systems and many models throughout the country. It is key to have a combined focus on establishing national standards and learning from other systems. Through all of this, he noted confidentiality, privacy and security needs to be secured.

From his opening statement to his response to almost every question, Leavitt emphasized that a “laser focus” needs to be on interoperability. He said a clear strategy for achieving interoperability has been established that involves setting up an interoperable system for numerous government agencies which provide 46% of the nation’s healthcare (including Medicare, Medicaid and the Veterans Administration). Establishing this set of common standards will move the market.

Yet Sen. Debbie Stabenow (D-MI) was critical of Leavitt’s “laser focus” on interoperability, saying programs need to move forward. By waiting for immediate interoperability we are risking lives, she said.

Sen. Kent Conrad (D-ND) requested Leavitt’s office produce a report within 30 days on the CDC’s ability to communicate in real time with major healthcare facilities across the United States.

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Crawford Confirmed As FDA Head

The Senate this week confirmed acting Food & Drug Administration Commissioner Lester M. Crawford as the permanent head of the agency. While the final vote was 78 to 16, it has been a contentious five months since President Bush nominated Crawford.

Sens. Hillary Clinton (D-NY) and Patty Murray (D-WA) held up the nomination over concerns about FDA’s lack of action to convert the Plan B emergency contraceptive product to over-the-counter status. However last week Health & Human Services Secretary Mike Leavitt sent a letter to Committee Chair Mike Enzi (R-WY) with a written assurances FDA will decide by Sept. 1 whether to allow sale of the drug without a doctor's prescription.

Another issue resolved prior to the vote was a hold placed by Sen. Tom Coburn (R-OK). Coburn objected to FDA having not changed the labeling on condom packages to reflect potential risks of when they may fail, as required by a 2000 law.

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NIH Changes Proposed

This week the House Energy & Commerce Committee held a hearing on reauthorization of the National Institutes of Health (NIH) with NIH Director Elias A. Zerhouni, M.D. as the sole witness. Under the draft legislation released by a House committee this week, proposed changes to NIH would provide the NIH director with authority to decide the agency’s federal spending priorities and the power to reorganize the agency's 27 institutes and centers.

"I see great wisdom in what the committee is proposing," Zerhouni told the committee. But Zerhouni did not fully endorse the proposal, noting many details had to be filled in.

Committee Chair Joe Barton (R-TX) said NIH reauthorization is a major goal this year. His draft legislation would not immediately reduce the number of institutes and centers at NIH. Instead it proposes to consolidate them into two major divisions -- one containing the institutes that focus on specific diseases or organs, and the other containing those that focus more on basic research. It would then be up to the NIH director -- with input from others -- to decide how the money should be distributed.

Rep. Tammy Baldwin (D-WI) was concerned about programs being pitted against each other for available funding. Zerhouni said he does not want a zero-sum game, but a common fund for common good. Language that limits the number of institutes does not concern him since NIH growth has been haphazard and driven by factors other than science.

Focusing on the grant process, Zerhouni advocated for complete preservation of the NIH peer review process. He cited continued reliance on those closest to the research forming policy and having outside oversight. Rep. Mike Bilirakis (R-FL) criticized these as subjective standards; Zerhouni said the wisdom of Congress is it has stayed out of the peer review process.

It is still uncertain how the Senate would approach reauthorization. The $28-billion agency was last authorized by Congress in 1993.

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Montana Judge Halts R-CALF/Border Hearing

A Montana federal judge this week cancelled a July 27 trial date for opening arguments in the lawsuit brought by R-CALF against the federal government over Canadian live cattle imports. This occurred In the wake of a unanimous federal appeals court ruling overturning U.S. District Judge Richard Cebull’s temporary injunction to close the Canadian-U.S. border to live cattle imports.

The judge cancelled the trial start, saying he would await the formal opinion of the 9th U.S. Circuit Court of Appeals. After study the opinion, “this court will determine whether further hearings are necessary,” the judge wrote in his order.

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Johanns Warns Japan on Beef Sales - Again

U.S. Agriculture Secretary Mike Johanns again warned Japanese authorities last week that Congress is losing patience with the continuing delays in resuming beef trade, speculating that when Congress returns from its August recess it could turn to trade issues involving Japan’s 19-month ban on U.S. beef imports.

The House and Senate are both discussing anti-Japan resolutions that could impose sanctions on Japan if beef trade doesn’t resume. Johanns’ comments were made to his counterpart, Japanese Ag Minister Yoshinobu Shimamura, in a sideline conversation during WTO ministerial meetings in Dalian, China.

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CA Assembly to Debate “BSE Tested” Labeling Bill

A bill to allow cattle owners to test their own animals for BSE, then market and label the beef as “BSE tested,” was introduced this week by California state Sen. Michael Machado. SB 905, Machado said, would allow consumers who are willing to pay for the extra testing to receive the assurance the label implies. It’s questionable if the bill, if enacted, could be enforced since USDA could preempt state laws on testing.

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Chile Lifts Ban on U.S. Beef

The government of Chile said it will resume purchases of U.S. beef and beef products from animals under 30 months of age, Secretary of Agriculture Mike Johanns announced this week. In 2003, Chile purchased $5.3 million in beef and beef products.

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Lugar Wants EPA to Speed Up Soybean Rust Fungicide Approvals

Former Senate Agriculture Committee chair Sen. Richard Lugar (R-IN) told EPA Administrator Steve Johnson this week he’s concerned about the time lag in agency approval of 18 pending applications for fungicides to be used to fight Asian soybean rust in the event of a broad U.S. outbreak. Lugar’s comments were prompted by a USDA report of a fresh outbreak of rust in Mississippi and Alabama reported by USDA last week.

While Lugar’s concerns went to approvals pending for the state of Indiana, his letter to Johnson represents congressional concerns over the broad implications of an inadequate fungicide stockpile to fight the potentially devastating soybean disease.

A number of products have been EPA approved using Section 18 emergency exemption authority under FIFRA. Lugar also sent a letter to USDA urging the department to work with EPA on a stockpile of fungicides and quickly moving those supplies to soybean rust “hotspots.” He also talked about proactive steps to avoid interference in soybean trade.

In addition, Lugar asked USDA to clarify “recommended management practices” necessary for a farmer to qualify for federal crop insurance for soybean rust. Lugar wants to see specific guidelines issued by the department.

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Energy, Highway Conferences Rushing to Complete By August

With an eye towards the Senate being nearly consumed with Supreme Court confirmation hearings, House and Senate conferees on reauthorizing the federal highway program and crafting an omnibus energy package vow to work through weekends and late into the night to get agreements before the August recess.

Highway conferees, who earlier were confident they could hammer out a conference report and pass it this week, instead wound up joining their colleagues to pass the 10th extension of existing federal highway and urban commuter/transport programs. Again, conferees are stuck on how to disperse among the states federal dollars for highway funding, hours of service, environmental reviews of federal highway projects and other issues. Senate conferees said they were close to a deal until Rep. Tom DeLay (R-TX) put on the table a new set of demands, including items beneficial to Texas. Conferees are also trying to pare back the cost of the highway package to avoid a threatened veto by President Bush.

On energy, conferees said they’d work through the weekend in hopes of getting a deal by the end of July so as to meet President Bush’s deadline of signing an energy package by August 1. Sticking points include MTBE liability protection. House Energy & Commerce Committee Chair Rep. Joe Barton (R, TX) finally unveiled a long-promised compromise plan on MTBE liability that would grant protection in exchange for an $11.43-billion trust fund to clean up MTBE-contaminated sites. Both MTBE refiners and the federal government would contribute to the fund, which would be an extension of the Leaking Underground Storage Tank Trust Fund with an added state matching portion, Barton said. Senate opponents want the larger trust fund to help clean up polluted waters caused by MTBE leaks from underground storage tanks. In return for the trust fund contribution, MTBE refiners would get immunity from lawsuits filed after Sept. 5, 2003, except for lawsuits filed by state attorneys general. Confereesalso agreed to extend daylight savings for extra month – three weeks earlier in the spring and a week later in the fall – beginning in March, 2007, pending a study by the Department of Energy on savings. Farm groups oppose the extension.

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Corn Prices Will Rise “Significantly” Under 8-Billion Gallon RFS

Corn prices “may rise significantly” if a “substantial” Renewable Fuels Standard (RFS) becomes law, USDA Chief Economist Keith Collins said during testimony on the impact of the RFS on production agriculture in the House Agriculture Committee this week.

With an 8-billion gallon RFS, demand for corn for ethanol will increase by about 685 million bushels for crop years 2006-2013, Collins estimated, kicking the price of corn about 8% higher. By 2013, the RFS will push the corn price up 30 cents per bushel or 12%.

The RFS mandates how much alternative fuel – ethanol and biodiesel– oil refiners must blend yearly with their diesel and gasoline through 2012. The House passed a 5-billion gallon mandate; the Senate pushed the mandate to 8 billion gallons.

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House CAFTA Vote to Follow China Trade Vote

House leadership this week confirmed the full House will consider separately a vote on alleged Chinese trade abuses prior to taking up the vote on the Central American Free Trade Agreement (CAFTA) before Congress recesses for the month of August. And while the sugar industry has not given up its opposition to CAFTA, it appears House opposition centers more on labor and environmental protections than on the price of sugar.

U.S. Special Trade Representative Ambassador Rob Portman told the Inter-American Development Bank this week of $20 million in federal money available to assist CAFTA nations to train judges in labor courts, conduct labor inspections, worker education and several other labor-related actions.

The Administration is working to get fence-sitting Democrats to come over to the “aye” side of the CAFTA vote by pledging the labor improvements. A major break came this week when House Democrat leadership agreed not to hold their members to a party-line vote. Some senior Democrats see this move as critical to House approval of the controversial trade pact.

At a press conference this week, groups in opposition to CAFTA, including the National Farmers Union (NFU), heard Rep. Charlie Melancon (D-LA) warn farm state legislators that if CAFTA passes, farmers who are hurt by the deal “will seek retribution.”

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Federal Animal Health Agency Recommended By Science Panel

With the threat of BSE, avian influenza and foot and mouth disease (FMD), consolidating all federal animal health authority under one high-ranking federal department to coordinate among federal, state and private sectors could be the most efficient way of protecting livestock and poultry production in the U.S., the National Research Council (NRC) said this week.

NRC, a council of the National Academy of Sciences (NAS), said the current federal animal health and environmental protection system is “too convoluted” at a time when industry is vulnerable to disease and bioterrorism. More than 200 different federal offices, seven Cabinet departments and “hundreds of state and local agencies” share responsibility for regulating U.S. animal health, NRC said.

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New Bills

A number of new bills have been introduced. Click here to send a request for a copy of the text or more information about the bill.

S.1418
Sen. Mike Enzi (R-WY) introduced a bill to enhance the adoption of a nationwide interoperable health information technology system.

S.1422
A bill offered by Sen. Chuck Hagel (R-NE) seeks to reduce human exposure to mercury through vaccines.

H.C.R.213
Rep. John Dingell (D-MI) with 89 cosponsors offered a resolution on the “vital role of Medicare in the health care system of our Nation over the last 40 years.”

H.C.R.215
Rep. Henry Waxman (D-CA) with 88 cosponsors offered a resolution on the “importance of Medicaid in the health care system of our Nation.”

H.R.5
Rep. Phil Gingrey (R-GA) offered legislation on medical malpractice liability reform.

H.R.3331
A bill proposed by Rep. Brad Miller ((D-NC) would “provide funding to enable institutions of higher education to establish a grant program to bridge the gap between laboratory discovery and commercially viable research.”

H.R.3359
Rep. John Conyers (D-MI) offered legislation on medical malpractice liability reform.

H.R.3369
Rep. Nita Lowey (D-NY) proposed a bill with respect to preparation for an influenza pandemic, including an avian influenza pandemic.

H.R.3378
Legislation introduced by Rep. Brian Baird (D-WA) would provide comprehensive reform regarding medical malpractice.

 

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Inside Track is produced as a service to clients of Policy Directions, Inc., a Washington, DC-based government relations/strategic government communications firm founded in 1995, specializing in customized advocacy on health care; food; biomedical research; biotechnology, human drug, and medical device regulation; federal nutrition policy and programs; and environmental policies and programs. For more information about PDI, please e-mail info@poldir.com.

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