Oct. 6, 2003

Newsletter Archive


Legislators Point to Hard Road for Medicare Reform Bill at Alliance Event
Speaking at an Alliance of Specialty Medicine Capitol Hill “fly-in” last week, Republican and Democratic legislators confirmed what many pundits have been saying for several weeks: the passage of Medicare reform legislation will be very difficult. The ACC is one of the 13 physician specialty societies in the Alliance. One legislator, Rep. Mark Foley, R-Fla., however, was optimistic that Congress would pass legislation to prevent a cut in physicians’ Medicare fees next year. “Regardless of what happens with the [Medicare reform package], we’re going to address physician payments,” he said. Rep. Foley and Rep. Sherrod Brown, D-Ohio, who also spoke during the Alliance event, have sent a letter to Speaker of the House Dennis Hastert, R-Ill., and House Democratic Leader Nancy Pelosi, D-Calif., requesting that Medicare physician payment provisions be carved out of the House Medicare reform bill and addressed as a stand-alone bill. The provisions would provide a 1.5 percent increase in physicians’ 2004 and 2005 Medicare fees. A more detailed report on the Alliance event will be available on the ACC Web site this week.

ACC members are encouraged to contact their House representatives and tell them to sign onto the Foley/Brown “Dear Colleague” letter on Medicare physician payment, and to contact their Senators and tell them to sign onto a similar letter to the Senate leadership from Sens. Arlen Specter, R-Pa., and Jeff Bingaman, D-NM. Members can easily contact their legislators via the ACC Legislative Action Center on the ACC Web site.


Medicare Coverage of VADs Expanded
Medicare coverage of ventricular assist devices (VADs) will be expanded to include “destination therapy,” or permanent support in patients with end-stage heart failure who are not candidates for a heart transplant. The per-procedure payment for the VAD implant procedure also will be increased by about 25 percent to approximately $70,000. Only hospitals that have implanted at least 15 VADs as bridge-to-transplant or destination therapy between Jan. 1, 2001, and Sept. 30, 2003, qualify for payment. The ACC testified earlier this year before the Medicare Coverage Advisory Committee in favor of expanded coverage, based on the results of the REMATCH trial. The decision memorandum on the new coverage is available on the CMS Web site.


HHS Inspector General To Look at Stent Placement, Outpatient Multiple Procedures in’04
The HHS Office of Inspector General’s (OIG) 2004 workplan, released last week, includes a review of inpatient and outpatient claims for stent procedures; the hospital outpatient prospective payment system, including multiple procedures performed during a single encounter, which is highly common for cardiovascular specialists; and continued review of outpatient cardiac rehabilitation services. The OIG has already released two reviews of outpatient cardiac rehab facilities, noting in both cases that there was a lack of physician oversight and inappropriate Medicare payments.


Past ACC President Dr. Garson to Chair AHRQ National Advisory Council
ACC Past President Arthur Garson, Jr., MD, MPH, has been selected to be the chair of the Agency for Healthcare Research and Quality’s (AHRQ) National Advisory Council. The advisory council is a 19-member panel of experts who advise the AHRQ on its research initiatives aimed at improving quality of care, outcomes, and cost-effectiveness of clinical practice. Dr. Garson is currently the dean and vice president of the University of Virginia Medical School. The College congratulates Dr. Garson on this outstanding honor.


Bill Giving FDA Regulatory Authority Over Tobacco Hits Snag
Negotiations on legislation that would give the FDA regulatory authority over tobacco products came to a standstill last week, with leading Democrats and anti-smoking groups saying the proposed legislation has a serious loophole. According to a Wall Street Journal report, the behind-the-scenes deliberations between the bill’s primary sponsor, Sen. Judd Gregg, R-NH, Sen. Edward Kennedy, anti-smoking groups, and tobacco industry representatives fell apart, with Sen. Kennedy saying the proposal “falls far short of the strong FDA authority needed to effectively do the job.” Despite the setback, Sen. Gregg and Sen. Kennedy still hope to move forward with the bill, the Washington Post reported.


Aetna Launches New Specialist Network Tiered by Quality, Cost Effectiveness
Aetna has launched a new physician specialist network that is tiered according to “indicators of effective care delivery,” the company announced last week. The new network, called Aexcel, involves medical specialties “with large portions of health care spending,” including cardiology and cardiothoracic surgery. According to an Aetna spokesperson, to be included in the network, specialists must meet criteria in four categories: volume, specific quality of care measures, efficient use of resources throughout the course of care, and adequate member/employer access. The network initially will be available in three areas: Dallas/Ft. Worth, North Florida, and Seattle/Western Washington. Employers will be able to purchase the Aexcel network as part of most existing Aetna products.


Ranks of Uninsured Swell by More than 2 Million
The number of people in the United States without health insurance jumped by 2.4 million from 2001 to 2002, largely driven by employers dropping health insurance as a covered benefit, the U.S. Census Bureau reported last week. With an election year on the horizon, some are predicting that the alarming results may be enough to spur Congress to address the issue, but probably not until 2004. Democrats and Republicans have been at odds over how to increase coverage, with Republicans favoring tax credits toward the purchase of basic health insurance, and Democrats favoring public program expansions. In response to the new statistics, the Coalition for Affordable Health Coverage, of which the ACC is a member, called on Congress to use the $50 billion set aside in the budget to establish advanceable and refundable tax credits for the purchase of health insurance.


Blues Added to Class-Action Suit, Aetna Not Shielded by ERISA in Negligence Suit
The massive class-action suit brought by 17 state medical societies against some of the nation’s biggest managed care plans has a new defendant, the 41 Blue Cross and Blue Shield plans, Modern Healthcare reported. The class-action suit alleges that the managed care plans have engaged in racketeering and other unfair business practices that have denied or delayed payments to physicians. Two plans, Aetna and Cigna, have already reached settlements with the medical societies. Meanwhile, a federal judge has ruled that ERISA laws do not prevent Aetna from being sued for medical negligence. Under ERISA, health plans have generally been considered administrators of insurance benefits, not medical providers, and thus could not be sued for medical negligence. The decision is one of several recent rulings that have begun to erode that protection.




Advocacy Weekly is a product of the Advocacy Division of the American College of Cardiology. Questions or comments regarding this publication should be directed to the Advocacy Division at 800-435-9203 or to advocacydiv@acc.org.

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