May. 17, 2004

Newsletter Archive


Medical Liability Bill Passes House—Again
Like pouring salt in an open wound, the U.S. House of Representatives last week passed medical liability reform legislation again for the eighth time since 1995 in an effort to exert pressure on the Senate to do the same. H.R. 4280, the "Medical Malpractice Liability Limitation Act" passed the House by a vote of 229 to 197. The outcome of the vote closely mirrored a vote a year ago on an identical bill, H.R. 5, both of which are supported by the ACC. It is possible that the Senate, which has already considered medical liability reform legislation twice this year, will hold a third vote later this year.



ACC Member Testifies on Chronic Care Improvement Program
On May 11, on behalf of the ACC, Janet Wright, MD, of California, testified before the House Ways and Means Health Subcommittee in support of the voluntary Chronic Care Improvement Program (CCIP), which was created under the recently enacted "Medicare Prescription Drug and Modernization Act." "Health care has metamorphosed; health care delivery systems have not," said Wright, who pointed to disease management program models as the solution to correcting the U.S. health care system’s ills and referred to the cardiac rehabilitation disease management (CR/DM) model as one of the original, and highly effective, disease management programs. The CCIP would incorporate many features from the CR/DM model and set in motion a new direction in health care, fostering quality medical care that will lead to better financial, satisfaction, and clinical outcomes, said Wright. To view the complete testimony, click here.



Congressional Field Hearing on Medical Liability Reform Held in Chicago
On May 10 in Chicago, ACC member Jay Alexander, MD, delivered an urgent appeal for medical liability reform during a field hearing held by Rep. Mark Kirk, R-Ill. Alexander testified that liability premiums for his 15-member practice have risen from $230,000 to $1.1 million in just two years and that they consider themselves fortunate as many physicians in Illinois face non-renewals and have little prospects of obtain insurance today. Offering some hard-hitting words to Illinois politicians, Alexander said "The Illinois Legislature and its leadership is paralyzed by special interest commitments to the trial lawyers of this state focusing solely on insurance reforms and physician errors ignoring over 75% 0f Illinoisans and Americans who believe that we need tort reform now." Also testifying was neurosurgeon Gail Rosseau, M.D., on behalf of Doctors for Medical Liability Reform. Rosseau stressed that lack of medical liability reform is creating a vacuum of accessible medical care in many states, including Illinois. Since 2002, insurance rates with the state's largest insurer have increased 50 percent and have driven physicians out of the state. For example, 63 percent of the state's OB-GYNs have changed their practices, some moving out of state or quitting altogether. Rosseau commended the House of Representatives for passing strong medical liability reform but criticized the handful of primarily Senate Democrats who have repeatedly blocked reform legislation in the Senate.


Brailer Appointed as Health Information Technology Coordinator
Speaking at a health information technology summit on May 6, Secretary of Health and Human Services (HHS) Tommy Thompson introduced David J. Brailer, MD, Ph.D, a senior fellow at the California-based Health Technology Center and former chair and CEO of the Pennsylvania-based CareScience, as the new national Health Information Technology (HIT) Coordinator. Brailer will report directly to Thompson. Dr. Brailer, viewed as being well-suited to the position with his background and degrees in both medicine and management, will focus first on the development of incentives in Medicare and other HHS programs to encourage the private sector to implement an electronic medical record system, said Thompson. The office of the HIT coordinator is expected to be operational within three months.


Kerry Gears Health Plan Toward Small Businesses
Prospective Democratic presidential candidate Sen. John F. Kerry has outlined his health care proposals, detailing how he would reduce the costs of health coverage for small-business owners and their employees. Kerry explained that he plans to offer a mix of tax breaks and government assistance for small employers in return for their lowering the health coverage costs to their employees. Kerry also proposes to allow small-business owners to buy into the same health plan that covers members of Congress and to receive a tax credit if they pick up at least half of the cost for employees. Kerry would seek to drive down coverage costs by taking catastrophic medical costs of $50,000 or more out of the private sector and placing them on the government's tab. Current estimates put the cost of Kerry's plan at $650 billion, and perhaps much more, over 10 years. (Washington Post, May 12)


ACC Supports Language Revision on Cardiac Pacemakers
ACC recently supported CMS' recommendation to revise the language contained in the instructions for the national coverage policy on cardiac pacemakers (NCD 20.8). The minor revisions transfer the focus of the NCD from the implantation procedure to the reasonable and necessary medical indications that justify cardiac pacing. ACC agrees with CMS' findings that pacemaker implantation is no longer considered routinely harmful or an experimental procedure. This change was effective on April 30. Only the framework of the NCD is revised and not the NCD itself. For more information, click here.


New Stark Final Rule Audio Conference Event
On June 3, the ACC will offer another Medical Group Management Association (MGMA) audio conference titled, "The New Stark Final Rule: An Analysis and Its Impact on Physician Practices." The purpose of the call is to help participants identify new requirements/clarifications concerning the ownership, investment, and compensation exceptions contained in the self-referral law and how the rule may affect practice operations. Also, participants will learn how new clarifications regarding the reporting requirements and sanctions provided by the self-referral law affect their compliance efforts. The conference event will cover the exception to the referral prohibition related to both ownership/investment and compensation for services furnished in an ambulatory surgical center. The 90-minute call will be presented at the following times: 2 – 3:30 p.m., ET; 1 – 2:30 p.m., CT; 12 – 1:30 p.m., MT; 11 a.m. – 12:30 p.m., PT; 10 – 11:30 a.m. Alaska; and 9 –10:30 a.m., Hawaii. ACMPE, CME, CPE, and nursing credits are available for this event. To learn more about participation, click here or contact Mia Thomas, ACC Payer Advocacy at 800-435-9203.


WebMD Responds to Physician Concerns
After several months of discussions with medical association representatives, WebMD has created two new programs to address physician concerns about various claims transaction issues. The first program, Customer First, is a redesigned customer service center that provides a direct customer service representative who will be personally responsible for resolving any physician issue that WebMD has not addressed in a timely manner. Customer First will also update physicians regularly on industry developments, products, and services, according to WebMD. The second program, the Medical Association and Society Escalation Support Protocol, establishes a path of escalation for high priority issues when any medical association receives a direct request for information or assistance regarding a WebMD-related problem. WebMD has set up a dedicated email address, WebMDESCIssues@WebMD.net, for this service. Finally, WebMD Corporation announced May 7 that all Medicare claims and electronic remittance advice (ERA) transactions it conducts are in HIPAA format, well in advance of the July 1, 2004, deadline set by CMS.


Tobacco Companies Fail to Stop DOJ Lawsuit
U.S. District Judge Gladys Kessler denied a motion filed by four tobacco companies to dismiss a Department of Justice (DOJ) lawsuit that seeks $289 billion in profits that resulted from the companies’ alleged fraud and dangerous promotional practices. DOJ alleges that the four tobacco companies—Brown & Williamson, Philip Morris USA, R.J. Reynolds, Lorillard Tobacco, and the Liggett Group—manipulated nicotine levels, misled consumers about the health risks of smoking, and directed multibillion-dollar promotional campaigns at children. This is the second time Kessler has denied a motion to dismiss from the tobacco companies in the last two months. The decision makes it clear that "there is going to be a trial," said Matthew Meyers, president of the Campaign for Tobacco-Free Kids. (Arizona Star, May 8)



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