American Pediatric Society & Society for Pediatric Research

Public Policy Council

April–May 2006 Legislative Report 

 






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AMERICAN PEDIATRIC SOCIETY
ASSOCIATION OF MEDICAL SCHOOL PEDIATRIC DEPARTMENT CHAIRS
SOCIETY FOR PEDIATRIC RESEARCH

PUBLIC POLICY COUNCIL
LEGISLATIVE REPORT
April–May 2006

The calendar may read April, but it is growing increasingly clear that time may be the biggest impediment to Congressional action on items of interest and importance to the pediatric community this year.  As it does every two years, the November mid-term elections are quickly eating away at valuable Congressional business days, as Members of Congress are increasingly anxious to return to the district to campaign.  President Bush's poor approval ratings and the continued dissatisfaction among the public on the War in Iraq, the price of gasoline and immigration reform are weighing heavily on the minds of Republicans, especially in the House, where Democrats are showing uncharacteristic unity of message as they hope to regain majority control. 

Of course, the other challenge—and a perennial one at that— is money.  While not legislatively binding, the President's annual budget proposal, released every year on the first Monday in February, sets the tone for the fiscal agenda and environment for child and adolescent health advocates.  This year the tone is grave, at best.  In his FY 2007 budget proposal, released on February 6, the President proposed $13.6 billion in cuts from Medicaid and the State Children's Health Insurance Program over five years. The President's budget also proposes to eliminate or decrease funding for many other child and adolescent health discretionary programs, including Children's Hospitals Graduate Medical Education (CHGME) program, Title VII health professions training grants, Emergency Medical Services for Children (EMSC) program, and the National Children's Study (NCS). These devastating cuts come on the heels of a child and adolescent health safety net already compromised by the passage in February of deep spending cuts to the Medicaid program by the House of Representatives.  The pediatric community will be urging Congress in the strongest possible voice that funding for health programs must be sustained and increased in the FY 2007 budget and appropriations process. 

The following is an update and summary of recent federal legislative and regulatory activities of interest to the pediatric academic community that will assist you in your advocacy in the weeks and months ahead. We encourage you to share this information with your colleagues. Members of the American Pediatric Society, Society for Pediatric Research and the Association of Medical School Pediatric Department Chairs are urged to reach out to their Members of Congress to advocate for key health and pediatric-specific issues. 

This report includes information on the following issues:


PEDIATRIC RESEARCH   

National Institute of Health (NIH)/FY 2006 and FY 2007 Appropriations: Through its coalition work with the Ad Hoc Group for Medical Research, the Public Policy Council (PPC) and the entire pediatric community  engaged heavily in the fight to encourage an adequate increase for the NIH in FY 2006.  Unfortunately, after months of hard work and advocacy, the House and Senate in the final days of an extended session of Congress approved an FY 2006 Labor/HHS spending bill that contained $28.6 billion for NIH - an increase of just $153 million over FY 2005, the lowest increase to the NIH (less than 1%), in more than thirty years. That small increase, however, was essentially wiped out by a provision in the FY 2006 Defense Appropriations bill - also approved in the final hours of the Congressional session - that made a 1% across-the-board cut to all non-defense discretionary spending.  Therefore, the FY 2006, current year funding for the NIH is $28.4 billion reflecting a cut of $66 million.

FY 2007: The President's FY 2007 budget proposal for NIH is level funded at $28.4 billion. Through its work with the Ad Hoc Group the PPC will continue to seek adequate and appropriate increases in funding for the NIH. The advocacy community request for FY 2007 is a 5 percent increase above the FY 2006 funding level - $29.75 billion. We will also continue to support an adequate funding level for the NICHD of $1.35 billion including sufficient funding for and stability of the National Children's Study.

NIH Reauthorization: There has been a good deal of discussion about the reauthorization of the NIH in this 109th Congress. The last time the NIH was reauthorized was 1993. Rep. Joe Barton (R-TX), the chair of the committee of jurisdiction, the House Energy and Commerce Committee, has indicated his strong interest in reauthorizing the NIH and to this end is circulating a draft reauthorization bill. In general the draft legislation focuses on the organization and functions of the Office of the Director of NIH and its relationship to the individual NIH institutes and centers, provides enhanced authorities for strategic planning and support of trans-institute initiatives and creates a detailed series of reporting requirements covering research and other activities supported by the NIH. The draft also eliminates several disease specific authorizations for appropriations and reporting requirements. At this time it is unclear if or when Congress will seriously address these concerns in the second session of the 109th Congress. There are also several areas of concern - such as stem cell research, fetal tissue research, and conflict of interest issues, as well as some of the allegedly "controversial" behavioral research grants - that may further complicate the process as this moves forward in the coming year.  However, at a congressional hearing earlier this year Chairman Barton reiterated his commitment that the reauthorization of the NIH is a top priority this year.

National Children's Study (NCS): The NCS continues to move forward, however, the implementation of the study could be over before it even begins if the president's proposed zero funding for the NCS in FY 2007 is approved by Congress.

Sufficient funds previously have been appropriated for the launch of at least three Vanguard Centers and one Coordinating Center, but, beyond the final pilot work, the outlook for funding of this important study is uncertain at best.   It is estimated that the total cost of the NCS over 25 years will be between $2 - $3 billion. The membership of the reconfigured National Children's Study Federal Advisory Committee includes several prominent people, including Myron Genel, MD, chair of the Public Policy Council, former AAP president Antoinette P. Eaton, MD, Edward R.B. McCabe, MD, PhD, David Schonfeld, MD, chair of the AAP's Committee on Pediatric Research, and Alan Fleischman, MD, who chairs the NCS Advisory Committee.  There are now seven Vanguard Centers that will pilot and complete the first phases of the Study:

  • University of California, Irvine, for the Study location of Orange County, California

  • University of North Carolina, Chapel Hill, for the Study location of Duplin County, North Carolina

  • Mount Sinai School of Medicine, New York, for the Study location of Queens County, New York

  • Children's Hospital of Philadelphia and Drexel University School of Public Health, Philadelphia, for the Study location of Montgomery County, Pennsylvania.

  • University of Utah, Salt Lake City, for the Study location of Salt Lake County, Utah.

  • University of Wisconsin (UW), Madison, and the Medical College of Wisconsin, for the Study location of Waukesha County, Wisconsin.

  • South Dakota State University with Children's Medical Center of Cincinnati and the University of Cincinnati for the Study location of Brookings County, South Dakota, and Lincoln, Pipestone, and Yellow Medicine Counties, Minnesota.

The pediatric and adolescent medicine community will need to work very hard to insure that the NCS is allowed to go forward and that funding is available for the implementation of the study in the fiscal year ahead. In this regard two recent Congressional briefings - one on the Senate side sponsored by Senators Tim Johnson (D -SD) and John Thune (R-SD) and the other sponsored by Representatives Doris Matsui (D-CA), Jim Gerlach (R-PA) and Stephanie Herseth (D-SD) were held. The pediatric community is working in collaboration with the March of Dimes to support an FY 2007 appropriation of $69 million.

Further information and updates are available at http://www.nationalchildrensstudy.gov.

Pediatric Research Loan Repayment: The NIH loan repayment program, including pediatric and clinical research, continues to be a successful and important option for early and mid-career pediatric researchers. According to the NIH, over 500 new and 100 renewal applications were submitted to the Pediatric Research LRP in FY 2004. Nearly 50 percent of the new applications and more than 80 percent of the renewal applications were funded. In FY 2004, more than 50 percent of awards went to applicants with M.D. or M.D. /Ph.D. degrees.  Also, half of the awardees were within 5 years of the receipt of their doctoral degree.  There were 228 awards in FY 2004 for pediatric loan repayments in contrast to 298 in FY 2003 and 168 in 2002.  It is very important that this program - which allows eligible researchers and trainees supported by governmental (including AHRQ) and private, nonprofit grants to apply to the NIH for loan repayment - continue to be well publicized and utilized by pediatricians to ensure ongoing funding for this critical initiative.  The current extramural funding cycle is now closed.  Funding decisions will be announced in August 2006.  The next application will open in September 2006.  Additional information is available at http://www.lrp.nih.gov. 

Publication and Disclosure Issues in Clinical Trials: This topic continues to be a high profile issue, due in part to the problems with Vioxx and other drugs.  Senator Chris Dodd (D-CT) has reintroduced from the 108th Congress the Fair Access to Clinical Trials (FACT) Act of 2005, S. 470.  The legislation calls for a clinical trial registry, accessible to patients and health care practitioners, for ongoing clinical trials for serious or life-threatening diseases and conditions, and a clinical trials database of all publicly and privately funded clinical trial results regardless of outcome, accessible to the scientific community, health care practitioners, and members of the public.  The bill currently has six bipartisan co-sponsors.  On the House side, Reps. Henry Waxman (D-CA) and Edward Markey (D-MA) reintroduced in June 2005, H.R. 3196, a bill that would expand on the National Library of Medicine's www.clinicaltrials.gov database. Sponsors would be required to register all privately and publicly funded studies of drugs, biologics, or medical devices with safety or effectiveness endpoints as a condition of obtaining Institutional Review Board (IRB) approval.  H.R. 3196 has 41 co-sponsors.  The PPC will monitor and work with the primary authors of the legislation to make sure that the voice of the adolescent research community is heard as this legislation moves forward in the second session of the 109th Congress.

Agency for Healthcare Research and Quality (AHRQ)/Appropriations: The PPC, as part of a broad-based coalition, the Friends of AHRQ, supports a $440 million funding request for AHRQ in FY 2007.  The President proposed level funding at $319 million for AHRQ in FY 2006 and again for FY 2007, with all funds allocated via transfers from other public health service agencies. The funding is designated for health information technology and patient safety ($84 million), $15 million for clinical effectiveness research and $17.1 million available for new non-patient safety research grants. There is also interest by the Senate to reauthorize AHRQ before the end of this session. AHRQ should have been reauthorized in 2005.

Secretary's Advisory Committee on Human Research Protections: The Secretary's Advisory Committee on Human Research Protections (SACHRP) has a Subcommittee for Research Involving Children, which includes several notable pediatricians. The subcommittee was formed to provide recommendations for consideration by SACHRP on interpretations of the requirements of HHS regulations 45 CFR 46.404-407 ("Subpart D") in order to help ensure that children who participate in research are appropriately and adequately protected.  In April 2005, the pediatric subcommittee finalized, after more than a year, its recommendations for defining a number of terms in Subpart D.  These recommendations are designed to increase the clarity and consistency in research approvable under this section.  Among the concepts defined by the subcommittee are uniform standard, minimal risk, condition, commensurate, and vital importance.  The Subcommittee has submitted the recommendations in a letter to HHS Secretary Leavitt. The next areas of consideration for the subcommittee are issues of parental permission and child assent, as well as further clarification of terms and decision-making challenges found within section 46.405 such as placebo-controlled and vaccine trials involving children.  Additional information, including its charter and the pediatric subcommittee roster, can be found on the SACHRP's website, at http://www.hhs.gov/ohrp/sachrp/index.html.

Embryonic Stem Cell Research: In April 2005, the Committee on Guidelines for Human Embryonic Stem Cell Research of the National Research Council and the Institute of Medicine issued a report that provides guidelines for the responsible practice of human embryonic stem cell research. Some of the key recommendations of the report include:

  • Establishing an embryonic stem cell oversight committee to provide local oversight of all issues related to derivation and research using stem cells

  • Institutional Review Boards cannot waive the requirement for obtaining informed consent.

  • No cash or in-kind payments may be provided for donating blastocysts in excess of clinical need for research purposes

  • A national body should be established to assess periodically the adequacy of the guidelines proposed by this NRC/IOM report and to provide a forum for continuing discussions of issues involved in human embryonic stem cell research.

In May 2005,  the House passed H.R. 810, the Stem Cell Enhancement Act of 2005, by a vote of 238 to 194.  The bill—introduced in February 2005 by Reps. Mike Castle (R-DE) and Diane DeGette (D-CO)—modifies the current stem cell policy, established in August 2001, by expanding the number of stem cell lines that are eligible for federally funded research.  A companion Senate bill, S. 471, introduced by Senators Arlen Specter (R-PA) and Tom Harkin (D-IA), currently has 41 bipartisan cosponsors. 

On December 16, the Senate unanimously passed the Stem Cell Therapeutic and Research Act of 2005, which provides for the collection and maintenance of cord blood units for the treatment of patients and research, and to authorize the Bone Marrow and Cord Blood Cell Transplantation Program to increase the number of transplants for recipients suitable matched to donors of bone marrow and cord blood. A number of Senators, including Sen. Tom Harkin (D-Iowa), sought to amend the bill to include language from the Castle/DeGette Stem Cell Research Enhancement Act (HR 810). Ultimately, the amendment was retracted, though the bill's House sponsors and the Coalition for the Advancement of Medical Research urged Senate Leadership to schedule a vote on H.R. 810 in early January. The pediatric community, working as part of a broad coalition of patient and research advocacy groups, will continue to urge Senate action on this bill in 2006. Of course it is anticipated that even if both the House and the Senate approve an embryonic stem cell bill, President Bush has indicated his intent to veto the measure. In addition, while the debate continues in Congress, several states have or are contemplating introducing stem cell legislation following the success of the 2004 California stem cell ballot initiative.   In 2006, the state of Maryland passed important stem cell legislation.

On February 16, 2006, the National Academies' National Research Council and Institute of Medicine announced that they were convening a new committee to provide updated guidelines on the conduct of human embryonic stem cell research. According to the press release, the "committee will periodically update the guidelines issued last year by the Academies to reflect advances in stem cell science. The guidelines are voluntary and intended to enhance the integrity of human embryonic stem cell research by encouraging responsible practices." The Committee will be funded by private sources, including the Ellison Medical Foundation, the Greenwall Foundation, and the Howard Hughes Medical Institute.

The PPC will continue to be involved in efforts with the pediatric research societies and others throughout the 109th Congress to urge the Administration to modify its current stem cell policy, which limits federal funding for research on embryonic stem cells to those cells derived prior to the August 9, 2001, date when the policy was announced.

NIH Conflict of Interest Regulations: In a Senate hearing held last year, key Senators indicated that some adjustments must be made in the conflict of interest regulations that NIH Director Elias Zerhouni, MD announced in February. Under the rules, NIH employees will be barred from entering outside consulting agreements with pharmaceutical companies, hospitals, health insurers and health care providers. The guidelines also forbid 6,000 top NIH employees from holding stock in pharmaceutical or biotechnology companies, and require current stockholders in the group to sell their shares. Other agency employees must divest by the same date any holdings that exceed $15,000 in value for a particular company. During the hearing Senator Harkin told NIH Director Elias Zerhouni  "[t]hey are too onerous, and they must be redone, soon before you lose more people. I think we've gone overboard." Senator Specter added that the committee would recommend ways to loosen the rules. In addition, Secretary of Health and Human Services Michael Leavitt also indicated that these regulations might need to be reviewed, in light of the numerous comments received on the interim final ethics regulations.  Accordingly, to allow time for this review and consideration, the deadlines for filing supplemental financial disclosure reports was extended to October 3, 2005, and the deadline for divesting financial interests prohibited under the regulation announced in February has moved to January 2, 2006.

Coalition to Protect Research: The Coalition to Protect Research is a coalition of organizations committed to promoting public health through research. Sexual health and behavior research is essential to providing a scientific foundation for sound public health prevention and intervention programs. The pediatric academic societies, along with the Society for Adolescent Medicine, continue to closely monitor the challenges to the peer review process and certain NIH grants that have arisen during the appropriations process from some members of Congress over the past three years. It is anticipated that some of these same challenges will occur as the FY 2007 appropriations process moves forward.

NIH Public Access: Last year, NIH director Elias Zerhouni, MD released the agency's revised policy on public access. The policy requests—but does not require—NIH grantees to send to NIH research manuscripts that have been accepted for publication in peer reviewed journals. NIH's National Library of Medicine will compile an archive of these manuscripts and will post them on PubMed Central within the period of time specified by the author.

The policy, which is now in effect, is similar to the proposed version published in the Federal Register on September 17, 2004, although the final policy allows authors themselves to specify when their manuscripts should be made publicly available (up to 12 months) after publication. Under the original proposal, all author manuscripts were to be posted six months after publication. There has been some interest among some Senators on Capitol Hill in introducing legislation to make deposit of manuscripts in PubMed Central mandatory (not elective) and mandate a free access window of 6 months (instead of the current 12 months).  
 

PEDIATRIC MEDICAL DEVICES

Following the series of stakeholder meetings hosted by the AAP, the Elizabeth Glaser Pediatric AIDS Foundation, the National Organization for Rare Disorders (NORD), the National Association of Children's Hospitals, and the Advanced Medical Technology Association last year, the pediatric community has continued legislative efforts to increase the access and availability of pediatric medical devices for neonates, infants, children, and adolescents.  On November 1, 2005, AAP along with Elizabeth Glaser Pediatric AIDS Foundation, the American Thoracic Society and NORD hosted a briefing for Senate Health, Education, Labor and Pensions (HELP) Committee staff on the need for pediatric medical devices.  The briefing was well attended and FDA regulatory pathways for medical devices were discussed fully.

Chaired by PPC member Dr. Jon Abramson, the AAP has convened a Task Force on Pediatric Devices,.  The two-year Task Force, which has six members, will provide leadership and direction on issues surrounding the safety and effectiveness of existing devices and promote the development of new medical devices that address the needs of children.

Congressional Activities:  Senate staff remains interested, and staff is optimistic, about the development of legislation in the second session of the 109th Congress to increase access to pediatric devices.  The pediatric community will continue to meet regularly with congressional staff to ensure that any legislation is comprehensive and adequately addresses the needs of pediatricians and their patients.
 

PEDIATRIC WORKFORCE

GME Financing in Children's Hospitals: As in the past, the PPC continues to work closely with the National Association of Children's Hospitals (NACH) to advocate for the CHGME program.  The FY 2006 Labor-HHS-Education conference agreement provided $297 million for the CHGME program (inclusive of the 1% across the board cut).  The 2007 proposed budget from the president would reduce funding for this program by two-thirds, to $99 million.  The President also asks Congress to "reform" CHGME by targeting the remaining CHGME funding to only children's hospitals that have the greatest financial need, serve the largest number of uninsured patients, and train the most residents.  With this proposed change in mind, PPC will work closely with NACH to ensure adequate funding, as well as protect the original statutory functioning of the CHGME program. The pediatric community is supporting funding for the CHGME in FY 2007 of  $330 million.

Reauthorization: Last July the Senate passed S.285, reauthorizing the CHGME through FY  2010.  The legislation, the Children's Hospitals Educational Equity and Research (CHEER) Act, authorizes $330 million for FY 2006 and "such sums as necessary" for subsequent years to children's hospitals for expenses associated with operating approved graduate medical residency training programs. Independent children's teaching hospitals represent less than one percent of all hospitals but they train nearly 30 percent of all pediatricians, half of all pediatric sub-specialists, and the majority of the nation's pediatric research scientists.  They are also the safety net for the poorest children and adolescents, the centers of excellence for the nation's sickest children and adolescents, and the centers of research for improving health care for all children and adolescents. The House bill, H.R.1246, introduced by Representatives Nancy Johnson (R-CT) and Deborah Pryce (R-OH), currently has 166 cosponsors.  The members of the PPC will continue to work closely in collaboration with NACH to secure final passage in the second session of the 109th Congress. It is imperative that action is taken swiftly on reauthorization in the House of Representatives in light of the changes proposed by the Administration to the CHGME. These changes include reducing funding dramatically and targeting the remaining dollars to only children's hospitals that have the greatest financial need, it is absolutely critical that reauthorizing legislation be enacted as soon as possible.

Title VII - Appropriations: Once again, the Title VII program has been a target for near-elimination by the Administration and Congress.   As in the previous four years, President's FY 2007 proposed budget removed all funding for primary care, interdisciplinary community projects, and public health. The President proposed only $10 million for the Title VII program.  As in previous years, Title VII also faces major funding threats in Congress.  Following a tradition of the past several years, PPC is joining with the health professions and nursing education community to continue to fight to restore funding for health professions and nursing education training under both Titles VII and VIII.  Through its efforts with the Health Professions and Nursing Education Coalition, the Academy supports the full restoration of funding of the Title VII health professions programs, which received $300 million in FY 2005. The PPC also continues to advocate for adequate funding of at least $40 million for the general internal medicine/general pediatrics provision of Title VII.

Following a tradition of many years, the pediatric community continues to vigorously fight to restore funding for health professions and nursing education training under both Titles VII and VIII.  Through its leadership efforts with the Health Professions and Nursing Education Coalition, the PPC will push for the restoration of funds for this small but vitally important program.  In addition, staff is compiling examples of the real impact that these severe cuts to Title VII will have on programs, providers, patients, and communities.

Title VII - Reauthorization: The Title VII program was due to be reauthorized in the 107th Congress (2002) but four years later Congress still has not taken it up.  The pediatric community is continuing to have ongoing discussions with colleagues in the internal medicine community in anticipation of possible reauthorization in the 109th Congress. Additionally, the Association of American Medical Colleges (AAMC) assembled a committee of physicians to review the mission and effectiveness of the Title VII program, and make legislative recommendations for reauthorization.  Tom DeWitt, MD, former APA president and former chair of the AAP's Committee on Pediatric Education, represented the pediatric community at the committee's inaugural meeting in January 2005, and presented several recommendations for the program, including supporting primary care and interdisciplinary training, and increasing the number of primary care professionals from underrepresented minority groups. The group issued its six recommendations in June 2005. AAMC staff has begun meeting with Congressional staff to see how best to proceed with releasing the report to Congress. The AAMC is interested in outside organizations endorsing their recommendations which includes proposing a new structure for Section 747, in which grants are preferentially awarded to applicants who enter into a formal relationship and submit a joint application with a Federally Qualified Health Center (FQHC), an FQHC Look-Alike, Area Health Education Center (AHEC), or a clinic located in a Health Professions Shortage Area (HPSA) or Medically Underserved Area (MUA) or a clinical practice setting in which at least 40 percent of its patients are either uninsured or supported by Medicaid. The PPC can review the AAMC proposal and recommendations at  http://www.aamc.org/advocacy/library/laborhhs/t7reauth.pdf.

Resident Hours:  In March 2005, Rep. John Conyers (D-MI) reintroduced the "Patient and Physician Safety and Protection Act of 2005" (H.R.1228).  The bill establishes specific limits on work hours, allows residents to file anonymous complaints regarding violations, and imposes financial penalties for noncompliance. Specifically, the bill limits postgraduate trainees to 80 hours of work per week and 24 hours of work per shift. They must have at least 10 hours between scheduled shifts, at least one of every 7 days off, and at least one full weekend off per month. The bill also limits on-call responsibilities to no more than every third night.  H.R.1228 offers whistleblower protections to individuals who report violations to HHS, ACGME or hospital management, and subjects hospitals to penalties of up to $100,000 for violations in each resident training program in any 6-month period.   The bill - which has no cosponsors - has been referred to the House Energy and Commerce Committee's Health subcommittee. A Senate companion bill, S. 1297, was introduced on June 23, 2005, by Senator (now Governor) Jon Corzine (D-NJ) and has three cosponsors.
 

FY 2006/2007 BUDGET/APPROPRIATIONS

FY 2006 - The Current Fiscal Year 

On November 17, the House of Representatives—somewhat surprisingly—defeated FY 2006 Labor/HHS appropriations conference report 224 to 209. The following day, the Senate voted to send the bill back to a House-Senate conference committee to reach an acceptable compromise. While a number of factors contributed to the defeat of the bill in the House, certainly one of the main reasons was the bill's failure to fund critical health and education programs adequately. For example the Maternal and Child Health Block Grant was funded at $700 million a decrease of $24 million from FY 2005.  So, the House and Senate resumed discussion, and on Tuesday, December 13, the House narrowly passed a slightly revised conference agreement, with additional funding for rural health programs and health professions (Title VII) to satisfy some of the 22 House Republicans who voted with all of the Democrats against the initial version.  Because the revised legislation still cut or froze many health and education programs and provided the lowest increase to the NIH, less than 1%, in more than thirty years, Senate passage proved difficult.  Finally, a threat from Senator Arlen Specter (R-PA) to attach the conference report to the FY 2006 Defense Appropriations bill—a must-pass bill—the Senate on December 21 approved the FY 2006 Labor/HHS-Education Appropriations bill by voice vote, clearing it for the President's signature on December 30, 2005—almost three months after the new fiscal year began. 
 

FY 2007 - The Upcoming Fiscal Year

President Bush released his 2007 budget February 6 with a proposed $13.6 billion in cuts from Medicaid and the State Children's Health Insurance Program over five years. The 2007 budget proposal came just days after the 2006 budget reconciliation bill passed Congress, which significantly cut Medicaid. The president's budget also proposes to eliminate or cut funding for many other child health programs, including Children's Hospitals Graduate Medical Education (GME) program, Title VII health professions training grants, Emergency Medical Services for Children (EMSC) program, and the National Children's Study (NCS).

The president's budget is the first step in a months-long process and is used as a blueprint for Congress to decide how to fund programs. The Senate passed its version of the FY 2007 budget on March 16, by a vote of  51–49. Prior to the final passage, the senate approved an amendment, by a vote of  73–27, offered by Senators Arlen Specter (R-PA) and Tom Harkin (D-IA) to provide an additional $7 billion in discretionary spending over the budget resolution.  The Specter-Harkin amendment would provide an additional $7 billion in funding for priority health programs, including NIH, CDC, HRSA, SAMHSA and education and training programs. On a straight party-line vote of 22–17, the House Budget Committee approved its version of the FY 2007 version of the Budget Resolution on March 29. However, it rejected an amendment offered by Rep. Rosa DeLauro (D-CT) that was similar to the Specter-Harkin amendment to increase by $7 billion health and education programs. Despite passage at the committee level, the House was unable to garner sufficient votes to bring the bill to the House floor prior to the April recess (April 7 - 25). The House leadership has indicated that they will try again when they return to the Capitol at the end of April. The PPC will continue to lobby Congress aggressively to sustain and increase funding for child and adolescent health programs until the process is (hopefully) finished in October. In this election year, there is some hope that Congressional members will choose to help children and adolescents.
 

HEALTH INSURANCE COVERAGE AND ACCESS TO CARE

FY 2006 Budget Reconciliation - Medicaid/ SCHIP: The House and Senate passed very different versions of a spending-cuts bill (reconciliation) late last year.  The Senate bill did not hurt children on Medicaid, but the House bill did.  Just before Christmas, the House-Senate conference agreement (reconciling the two versions of the bill) came to a vote.  The House passed it by a vote of 212-206.  The Senate passed it 50-51, with Vice-President Cheney casting the tie-breaking vote.  BUT, for technical reasons, the Senate deleted several provisions, which meant the bill had to go back to the House for an up-or-down vote. On February 1, 2006, the House of Representatives passed the bill, known as the Deficit Reduction Act of 2005 (DRA) (P.L. 109-171), by a vote of 216-214, and the President signed it shortly thereafter. 

The legislation will change federal Medicaid law and allow states to offer scaled-back benefit packages for children.  It will also let states charge children in poor families premiums for Medicaid coverage, and fees for prescription drugs and some medical services.  However, the legislation did add as an amendment the Dylan Lee James Family Opportunity Act of 2005, introduced by Senators Charles Grassley (R-IA) and Edward Kennedy (D-MA) and Rep. Pete Sessions (R-TX) and supported by the full pediatric and adolescent health community. This program establishes a state option to allow families of children with severe disabilities to purchase Medicaid coverage on a sliding premium scale. However, with cuts to Medicaid, FOA will once again be competing with Medicaid dollars.

While the pediatric community's work at the federal level will continue on this issue, state governments will need to decide if they want to adopt any of these Medicaid options.  The pediatric community will need to persuade their governors and state legislators to reject the options, and protect child health care coverage and services. A summary document on the impact of the Deficit Reduction Act is available from the American Academy of Pediatrics Division of State Government Affairs: http://www.aap.org/moc/displaytemp/15042006141513.pdf.

Currently, SCHIP is scheduled to be reauthorized in 2007.  The pediatric and adolescent medicine community will monitor this issue closely and will work to protect this program for near poor children, adolescents and their families.

Medicaid Commission: In July 2005, Secretary of Health and Human Services Mike Leavitt, announced the members of his Medicaid Commission. It includes 13 voting members and 15 non-voting members with an additional two governors to be added later. The advisory commission is charged with outlining recommendations for Medicaid to achieve $10 billion in reductions in spending growth during the next five years as well as ways to begin meaningful long-term enhancements that can better serve beneficiaries. The Commission is chaired by former Tennessee Governor Don Sunquist, and former Maine Governor Angus King serves as the vice chair. Among the non-voting members are AAP immediate past president Carol Berkowitz, MD and James Anderson, president and CEO of Cincinnati Children's Hospital Medical Center.  The Commission released its first report to Congress in September 2005, suggesting ways to realize the $10 billion in savings.  While most of the recommendations did not impact children negatively, there is concern that a proposal to add cost-sharing (co-pays) for prescription drugs could pose a significant burden to pregnant women and families with children.  The pediatric community is working aggressively with Congress to preserve EPSDT and limit the impact of cost-sharing as included in the Deficit Reduction Act. The Medicaid Commission most recently met on March 13 -15, 2006, and a second report is expected on December 31 containing longer-term recommendations on the future of the Medicaid program.

MediKids: In June 2005, The MediKids Health Insurance Act of 2005 was reintroduced in the 109th Congress by Rep. Pete Stark (D-CA) in the House (H.R. 3055), and Sen. John Rockefeller (D-WV) in the Senate (S. 1303). The bill creates a unified health care system that would achieve the pediatric community's goal of health insurance for all children and adolescents regardless of family income.  MediKids would make coverage automatic and promote equity, family responsibility, choice, and uniform benefits.  The House bill currently has 43 cosponsors; the Senate bill has five. 

Kids Come First Act of 2005: In January 2005, Senator John Kerry (D-MA) introduced the Kids Come First Act of 2005 (S.114). The bill has ten cosponsors. This legislation is an effort to provide affordable health insurance to all children and adolescents up to 300 percent of the federal poverty level (FPL), with an emphasis on reforms to Medicaid and SCHIP.  Included in the proposal is a "swap" for the states that would provide a 100 percent federal match for all children in the Medicaid mandatory population, in exchange for their expansion of their SCHIP program up to 300 % FPL.  The bill also includes outreach and enrollment efforts that have long been supported by PPC, such as: presumptive eligibility; 12-month continuous eligibility; acceptance of self-declaration of income; no waiting lists for children and adolescents under SCHIP; no assets tests for children and adolescents; and no 5-year waiting period for legal immigrant children (previously supported Immigrant Children's Health Insurance Act legislation).  Importantly, the legislation also provides for an increase in pediatric provider payments under Medicaid. 

Association Health Plans: In early 2005, Representative Sam Johnson (R-TX) and Sen. Olympia Snowe (R-ME) introduced (S.406/H.R. 525) the Small Business Health Fairness Act of 2005.  This legislation would allow AHPs, groups of small employers that band together and purchase health coverage, to be exempt from state regulation, oversight, mandates and would be federally regulated by the Department of Labor. H.R. 525 passed the House in July 2005.  Although, the Senate Committee on Health, Education, Labor, and Pensions (HELP) has held a hearing regarding AHPs, S.406 faces stronger opposition.

On November 2, 2005, HELP chairman Michael Enzi (R-WY) introduced S. 1955, the Health Insurance Marketplace Modernization and Affordability Act (HIMMA) of 2005, legislation that provides for "Small Business Health Plans" that are very similar to AHPs. S.1955 is opposed by the PPC and the pediatric community on similar grounds as the AHP legislation - this legislation would threaten the progress that has been made in ensuring that insured children have appropriate access to preventive and well-child care.  The HELP Committee began mark-up of S. 1955 on March 8, and approved the bill on a party-line vote on March 15.  The pediatric and adolescent medicine community has been activated in opposition to this harmful legislation, and urge instead that Congress consider legislative solutions for small business that will provide affordable quality health insurance to these families such as that offered by Senators Dick Durbin (D-IL) and Blanche Lincoln (D-AR) on April 6, 2006, S. 2510, the Small Employers Health Benefits Program Act.

Genetic Information Nondiscrimination Act Of 2005: In February 2005, the Senate by a vote of 98 - 0, passed the "Genetic Information Nondiscrimination Act of 2005" (S. 306/H.R. 1227).  This legislation would prohibit health discrimination on the basis of genetic information or services.  The bill prevents employers and health insurers from discriminating against a person based on their predisposition to a disease.  Specifically, the bill would bar employers from using individuals' genetic information when making a hiring, firing, job placement or promotion decision.  The bill would bar health insurers from underwriting based on genetic information.  The bill would also establish privacy protections for genetic information. Reps. Judy Biggert (R-IL), Louise Slaughter (D-NY), Bob Ney (R-OH) and Anna Eshoo (D-CA) introduced the Senate-passed bill in March 2005 in the House, and it currently has 182 co-sponsors.  This strong bipartisan leadership is being leveraged to pressure the House leadership to finally take up the legislation.  The pediatric societies have joined the Coalition for Genetic Fairness, which was formed to push Congress to pass a strong genetic nondiscrimination law, and is actively participating in strategy and advocacy. 
 

EMERGENCY MEDICAL SERVICES FOR CHILDREN (EMSC):

The President's FY 2007 budget once again proposed completely eliminating funding for the EMSC program. The PPC vigorously and successfully opposed the elimination of the program in FY 2006 and will do the same in FY 2007. The FY 2007 funding request for the EMSC program is $25 million, and increase of $5 million above current level funding.

Reauthorization: The Senate has introduced legislation to reauthorize the EMSC program for five years. S.760, the Wakefield Act, when reauthorized would allow the EMSC program to carry out its existing initiatives and address gaps in care through its survey and planning process. The pediatric societies were among 32 organizations that signed a letter to the Senate in early July supporting the Wakefield Act. The bill currently has 15 bipartisan cosponsors.  
 

IMMUNIZATIONS

Vaccine Programs/Appropriations: The final House and Senate conference agreement included $461.4 million for immunization assistance to states and localities under the section 317 program, $4.9 million for vaccine tracking and $58.5 million for prevention activities (including $1.49 million for expanded vaccine safety research) for a total of $524.9 million. In addition the Vaccines for Children (VFC) program, which is funded through Medicaid, includes $1.5 billion in vaccine purchase and distribution support for FY 2006.

The President's FY 2007 budget included $324.9 million for the section 317 immunization programs, $4.8 million for vaccine tracking, and $77.5 million for prevention activities, for a total of $407.3 million for all immunization programs.  This reflects a proposed transfer of $100 million from Section 317 to the Vaccines for Children program. This proposal offered for the fourth time by the Administration continues to be problematic for the Academy because it could leave the VFC program vulnerable to modifications and mischief that will not help children and adolescents. The Administration's budget proposed legislative change to the VFC that would allow underinsured children to receive VFC vaccines at public health clinics. The VFC mandatory program, at $2.1 billion, received increased funding over FY 2006 to cover the newly recommended meningococcal conjugate and hepatitis A vaccines. The Academy does not support this proposal for fear that significant modifications could be made that would endanger the entitlement that VFC provides similar to efforts that occurred during the authorization of the VFC program in 1993.

Thimerosal Legislation: In July 2005, Sen. Chuck Hagel (R-NE) introduced a Senate companion, S. 1422, to a bill introduced in the House by Representatives Dave Weldon (R-FL) and Carolyn Maloney (D-NY), H.R. 881, to amend the Federal Food, Drug, and Cosmetic Act to reduce human exposure to mercury through vaccines. The Mercury Free Vaccines Act of 2005 is similar to legislation introduced in the 108th Congress. Both H.R. 881 (with 73 cosponsors) and S. 1422 (no cosponsors) are awaiting committee and floor action.  As proposed in the bill, "a vaccine is a banned mercury-containing vaccine under this section if 1 dose of the vaccine contains 1 or more micrograms of mercury in any form." There is an exception if the Secretary of HHS makes a declaration of a public health emergency. In addition, the legislation also includes a restriction on administration of mercury-containing vaccines to children and pregnant women manufactured for use in the 2006 - 2007 influenza season. There are several effective dates including: July 1, 2006, the vaccine shall not be administered to any child under the age of 3 years old; and if the vaccine contains thimerosal, the vaccine shall not be administered to any pregnant woman; and effective July 1, 2007, the vaccine shall not be administered to any child under the age of 6 years old. There is also a public health emergency exception in this provision. In the past two years, over 20 states have introduced legislation banning thimerosal in vaccines and six states have passed legislation. Based on the scientific data, including several IOM reports, the pediatric community joined by other organizations such as the Sabin Vaccine Institute, Every Child By Two, and others continues to oppose this legislation. Several states are also introducing anti-thimerosal legislation. Local pediatricians are working extremely hard to oppose passage of these state-based proposals.

Vaccine Supply: Senators Evan Bayh (D-IN), Larry Craig (R-WY) and Mary Landrieu (D-LA) have reintroduced legislation (S.375) to address issues surrounding the manufacture, distribution, and supply of influenza vaccine, as has Sen. Hillary Rodham Clinton (D-NY), S. 1828.   Also Senators Mike DeWine (R-OH) and Hillary Rodham Clinton (D-NY) reintroduced their bill (S.226) from last year that requires the Secretary of HHS to develop a plan for the purchase, storage, and rotation of a six-month supply of vaccines routinely recommended for children and adults. The PPC will continue to monitor any such efforts.
 

PANDEMIC INFLUENZA

The activities on pandemic influenza continue to increase both in Congress and for the Administration. The Administration's pandemic plan (http://www.pandemicflu.gov/) has been reviewed by many and at a recent meeting convened by the Senate Minority Leader Harry Reid (D-NV),  and Senators Clinton, Obama, Dayton, Dorgan, and Harkin, AAP president Eileen Ouellete, MD, JD attended and as is often the case was the only participant to raise some of the important issues related to children and avian flu. These issues included the fact that first and foremost consideration should be given to the needs of children right upfront (using the analogy of  the poor care children received during Hurricane Katrina); what happens to sick parents who are not able to care for their children; what if schools are closed but may need to be open as an infirmary; hospitals will need additional staffing if parents are ill and must bring their children with them or if kids are sick what will parents need to do Also Dr. Ouellete emphasized the need that pediatricians must be involved in the early planning at the local level. Other participants at this meeting included the AMA, IDSA, APHA, several vaccine manufacturers, ASTHO and NACCHO. In addition, the Trust for America's Health (TFAH) has convened a working group on the pandemic that staff is participating in its meetings not as a member but to ensure that the Academy remains connected to the advocacy that is needed and necessary to ensure appropriate funding for pandemic flu. TFAH has produced several brochures entitled—"It's Not Flu as Usual"—with an emphasis on health care providers, faith and community based organizations and one that focuses on what businesses need to know.
 

PAS ANNUAL MEETING

STATE OF THE ART PLENARY SESSION: Sunday, April 30, 2006, the Public Policy Council and the Ambulatory Pediatric Association's Public Policy Advocacy Committee will jointly sponsor a session entitled New Resident Work Hours and Quality Care—Synergistic or Antagonistic? Confirmed speakers include: David Leach, MD, Executive Director of ACGME, Doug Jones, MD, representing the Residency Review Committee for Pediatrics, and Ted Sectish, MD, pediatric program director at Stanford University Medical School. Richard Behrman, MD Executive Chair, Pediatric Education Steering Committee, Federation of Pediatric Organizations will moderate this session.

LEGISLATIVE BREAKFAST: Monday, May 1, 2006, 7:00am, sponsored by the Public Policy Council for all attendees of the PAS meeting, is entitled "Medicaid "Reform:" Can we Preserve our Children's Safety Net?" with a presentation by Medicaid Commission member Carol Berkowitz, MD, the 2004-05 AAP president and former APA president.

SPECIAL SYMPOSIUM: Monday, May 1, from 12:15pm–1:15pm, The National Children's Study: Status and Future Plans. The panel presenters will discuss the current budgetary outlook, status of the study, options to implement the study and respond to questions from the audience. The panelists include: Duane Alexander, Director, NICHD/NIH, Peter C. Scheidt, Director, National Children's Study, NICHD/NIH, Alan R. Fleischman, Chair, National Children's Study Federal Advisory Committee, New York Academy of Medicine and NIH, and David Schonfeld, Chair, AAP Committee on Research and Member, National Children's Study Federal Advisory Committee. Elena Fuentes-Afflick, University of California, San Francisco, a member of the Public Policy Council will chair this session.
 

CONSIDER JOINING THE AAP FEDERAL ADVOCACY ACTION NETWORK (FAAN)

The American Academy of Pediatrics invites you to become a member of the Federal Advocacy Action Network (FAAN).  Coordinated by the AAP Department of Federal Affairs, FAAN is a network of AAP members who help support federal legislative and regulatory activities from their position as constituents.  FAAN members play an important role in passing federal legislation that benefits children and pediatricians.

The AAP Department of Federal Affairs gives FAAN members the information and tools you need to persuade your legislators.  For example, each month via e-mail you will receive FAAN MAIL with updates on AAP legislative priorities in Washington, D.C.  We will keep you up to date with timely information with "THIS JUST IN."  You will also receive "SPECIAL ALERTS" when immediate action is needed by you on a key issue. 

To join FAAN go to the Members Only Channel of the AAP web site, www.aap.org/moc, and click on Federal Affairs, then click on Join FAAN and follow the easy directions.   The Members Only Channel has some great tools to make your advocacy work easy.  Find the names of Congressional representatives, contact legislators via e-mail, read about daily congressional activity, view actual bills and use the media contact list.

If you are already a member of FAAN, thank you!  If you are interested in joining FAAN and have questions, please contact Priscilla Ring (pring@aap.org) in the AAP Department of Federal Affairs at 800/336-5475.  Together we can make a real difference for children and pediatricians!
 

 


HOW TO CONTACT YOUR MEMBER OF CONGRESS:

Write: The letter remains the most popular choice of communication with a congressional office.  If you decide to write a letter, remember to be courteous, to the point, and include key information and examples to support your position.  Address only one issue in each letter and, if possible, keep the length to one page.

To a Senator:

To a Representative:

The Honorable (name)

The Honorable (name)

United States Senate

United States House of Representatives

Washington, DC   20515

Washington, DC   20515

Dear Senator: 

Dear Representative: 

Fax: Currently it is best to fax your letter to Congress.  Fax numbers are available through the Capitol Hill Switchboard (202) 224-3121, or you can look up your members of Congress on "Thomas" the official website for Congress, available at http://thomas.loc.gov/, by going to "House Directory" or "Senate Directory" from the front page. 

Call: You can contact your Senator's and Representative's offices by calling the U.S. Capitol Hill Switchboard at (202) 224-3121.  If you do not know who your Representative is, the switchboard operator will be able to direct you to the proper office. Ask to speak to the staff member who works on health care issues. Be prepared to leave a very short message as well as your name and address.  You can also call your legislators in their home districts; information about local offices is available on the American Academy of Pediatrics' Members Only website, www.aap.org/moc.

E-mail: All of members of Congress now have e-mail addresses, but there is no set format for them. On some members web sites there is a mechanism to directly email most notably if you are a constituent.  We suggest calling the congressional office to get an accurate e-mail address or visit www.aap.org/moc the Members Only website of the AAP.

HOW TO CONTACT THE PRESIDENT: 

Write:
The Honorable George W. Bush
The White House
1600 Pennsylvania Avenue
Washington, DC 20500

Call: 202-456-1414
Fax: 202-456-2461
Email: president@whitehouse.gov 


2006 CONGRESSIONAL CALENDAR  

May 29–June2 Memorial Day Recess
July 3–7 July 4th Recess
August 7–September 4 August Recess

October 6

Target Adjournment
November 7 Election Day 
(435 members of the House of Representatives and 1/3 of the Senate)

Additional information and resource material on these and other pediatric and child health issues are available from:

Karen M. Hendricks, JD
Washington Coordinator
KHendricks@aap.org

Kristin Butterfield, MA
Legislative Assistant
KButterfield@aap.org

Public Policy Council
c/o American Academy of Pediatrics
601 13th Street, NW
Suite 400 North
Washington, DC  20005
ph: 800/336-5475 or 202/347-8600
Fax: 202/393-6137


Public Policy Council Members:

APS

Myron Genel, MD
Jimmy Simon, MD

SPR

Christine Gleason, MD
Elena Fuentes-Afflick, MD, MPH

AMSPDC

Russell Chesney, MD
Jon Abramson, MD


Report Submitted By:

Myron Genel, MD, Chairman
Karen M. Hendricks, JD, Washington Coordinator
Kristin Butterfield, MA, Legislative Assistant

April 17, 2006

   
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Duplication of any information contained herein for reasons other than personal use requires the expressed written permission of APS / SPR.
Last Updated: 10/02/2006