July 2006

U.S. Congress
• Senate Appropriations Committee to Consider L-HHS-E Spending on July 20; House Vote Postponed
• KU to Receive Funds Through “Member Projects”

Federal Agencies
• CMS: Medicare Reimbursements for Evaluation and Management to Increase
• HHS: More Funds for Pandemic Flu Preparedness to be Distributed

Kansas Legislature
• No Meetings on Human Cloning Held Yet; Meeting for July Scheduled



Funding for Labor, Health and Human Services, and Education (L-HHS-E)

On June 13, the House Appropriations Committee approved a draft of the FY2007 L-HHS-E funding bill. Many of the programs important to KUMC fall under the Department of Health and Human Services’ Health Resources and Services Administration. Some highlights of the bill include:

• Title VII health professions and Title VIII nursing programs would total $313 million, an $18 million gain over FY2006 and $154 million above the President’s budget request.
• Title VII geriatric programs were restored to $31 million.
• Title VII centers of excellence, primary care training, and scholarships for disadvantaged students received the same funds they did in FY2006.
• Unfortunately, the Subcommittee has recommended elimination of the health careers opportunity program and faculty loan repayment under diversity training.
• All Title VIII nursing programs will remain at their FY2006 levels.

The full House had been scheduled to vote on L-HHS-E at the end of June, but that vote has been postponed.

The Senate Appropriations Subcommittee on L-HHS-E is scheduled to consider this funding bill on Tuesday, July 18. The full Senate Appropriations Committee is expected to meet on Thursday, July 20, to address this bill. We do not know when the full Senate will vote on it.

Even after the House and Senate each approve their version of L-HHS-E funding, they will have to form a conference committee, which will reconcile the versions’ differences. Congress aims to finalize appropriations by September 30 (prior to the beginning of the fiscal year). However, many anticipate that the L-HHS-E funding bill will not be finalized until after the November elections.

To see the status of all federal appropriations bills, you can click here: http://thomas.loc.gov/home/approp/app07.html.

KU to Receive Funds Through “Member Projects”

Members of Congress are allowed the opportunity each year to request funding for specific projects. Although Members are not limited on the number of requests they can submit, these requests are nonetheless highly coveted. This year, each member of the Kansas delegation graciously agreed to seek funding for various projects at KU and KUMC.

Senator Sam Brownback (R-KS) secured $500,000 in the FY2007 Energy and Water Appropriations bill to be used for renovations in the Lied Building here at KUMC. This legislation has been approved at the committee level but still must be passed by the full Senate, approved by a conference committee, and signed into law by the President.

Congressman Dennis Moore (D-KS-3) secured $1 million in the FY2007 Department of Defense Appropriations bill for KU to purchase a transmission electron microscope. He also secured $400,000 in the FY2007 L-HHS-E bill for a high-speed communications network at the KU Center for Research in Lawrence.

It is important to remember that member projects (also called “earmarks”), are not final until the bills have been signed in law.



Medicare Reimbursements for Evaluation and Management to Increase

In a proposed rule published in the Federal Register on June 21, CMS included substantial increases in Medicare reimbursement for evaluation and management services. According to CMS, “The changes reflect the recommendations of the Relative Value Update Committee (RUC) of the American Medical Association.”

This proposed rule addresses two issues: “a comprehensive review of physician work relative value units (RVUs), as well as a proposed change in the methodology for calculating practice expenses.

CMS states that, “[T]he work component for RVUs associated with an intermediate office visit, the most commonly billed physician’s service, will increase by 37 percent.”

The public comment period is currently open, and CMS expects to issue a final rule in early November. Assuming they are included in the final rule, these proposed increases would become effective on January 1, 2007.

The full press release can be found at: http://www.cms.hhs.gov/apps/media/press/release.asp?Counter=1887

More Funds for Pandemic Flu Preparedness to be Distributed

Earlier this year, Congress passed an emergency spending bill that included funds for pandemic flu preparedness. The first phase of $100 million has been completed, and HHS is beginning distribution of an additional $225 million. The funds will go to all 50 states, Washington, D.C., New York City, Chicago, Los Angeles County, five territories, and three associated entities in the Pacific.

The full press release can be found at: http://www.hhs.gov/news/press/2006pres/20060711.html



No Meetings on Human Cloning Held Yet

At the close of the 2006 Kansas legislative session, the Legislature reached a compromise by agreeing to study the issue of stem cells. No meetings on this topic have been held, but one is scheduled for Tuesday, July 25. The agenda is expected to focus on the structure of the study.

The 2007 session is scheduled to begin January 8.