Renal Policy Express
- July 2003 -
Publisher: American Society of Nephrology       Email: email@asn-online.org
Dear ASN Members:
When congressional conferees return in the fall, they will try to reconcile differences between the House and Senate versions of the Labor, Health and Human Services (HHS) and Education Appropriations and Medicare Reform Bills. Both bills will have a significant impact on kidney disease research and patient treatment, as well as ESRD management.

The ASN is extremely concerned that the proposed funding levels for the National Institutes of Health (NIH), which passed the House and Senate, drastically reduce medical research. The ASN, in cooperation with the Coalition for Health Funding, the Ad-Hoc Group for Medical Research, and Research!America, is urging House and Senate Labor-HHS and Education conferees to add a minimum of 8.5 percent for the NIH in FY04.

Although progress has been made, the war on disease, particularly kidney disease, is far from over. For example, the House recommended FY04 NIH budget increase is a mere 2.5 percent. Funding at this level will dramatically lessen the translation of discoveries from “bench to bedside”—discoveries that too many of our patients are desperately waiting to receive.

Additional fallout from a significant drop in NIH support will include a diminished level and longevity of individual grant support; a drastic reduction in new grants; and severe discouragement among our youngest and brightest investigators about the prospects for success in an already highly competitive field. Slow growth to the NIH budget will also devastate the area of clinical research, where the fruits of our investment in medical research are applied to improving the health of the American people.

No single budget line item can compare with the return on investment that comes from NIH-sponsored research. Aside from human costs associated with the prevention of disease and disability, research funding saves critical health care dollars and contributes significantly to local and state economies. For example, it is estimated that kidney disease will cost the Medicare End Stage Renal Disease program $28 billion by 2010.

The ASN remains hopeful that the Administration and Congress will agree to add more funding for the NIH later in the FY04 appropriations process.

Sincerely yours,

Paul Smedberg



Appropriations Update
At this time, it appears that the Senate Labor-HHS Education appropriations bill will not reach the Senate floor until September. The biomedical research community is strongly advocating for an overall increase to the NIH funding level in the Senate bill.

In addition to these advocacy efforts, Senator Dianne Feinstein (D-CA) is working on an amendment to add an additional $1.3 billion to the Senate Labor-HHS bill for NIH. Health community organizations are urging Senators to support the Feinstein amendment and are seeking Republican Senators to consider cosponsoring the amendment. If the Feinstein amendment is accepted, it will bring NIH funding to $29.282 billion – an increase of 8.5 percent.




Medicare Reform
Beyond reconciling appropriations bills, Congress will be busy attempting to finalize a proposal for Medicare Reform which will then be sent to the President for his signature. An important part of the respective House and Senate Medicare Reform proposals are provisions for the treatment and management of End Stage Renal Disease (ESRD).

The Senate Medicare Reform proposal highlights significant changes to the ESRD composite rate. The composite rate would be increased by 1.6 percent for services furnished in 2004 and 2005. This is the first time the ESRD composite rate would be set for a period of more than one year. These payment amounts, methods, and adjustments would not be subject to administrative or judicial review under the statutory appeals processes.

Despite the significance of the proposed ESRD changes, some in Congress and the renal community are disappointed with the initial proposals and are working closely with key congressional allies to improve the ESRD provisions.



CMS Demonstration Project
In a related matter, Health and Human Services Secretary Tommy G. Thompson announced plans for a new demonstration program to develop new approaches to improve care for Medicare beneficiaries with ESRD. The new disease-management program will allow organizations experienced with treating ESRD patients to develop
financing and delivery approaches to better meet the needs of beneficiaries with this disease.

HHS’ Centers for Medicare & Medicaid Services (CMS) is inviting health care organizations to participate in the new ESRD demonstration program. During the four-year project, CMS will solicit a variety of organizations to coordinate care to patients with ESRD, encourage the provision of disease-management services for these patients, collect clinical performance data, and provide incentives for more effective care.

Disease management is intended to improve patient outcomes while containing health care costs. Disease management for ESRD emphasizes the central role of the nephrologist, management of the many co-morbid conditions frequently associated with ESRD, and management teams with special knowledge of diet, medications, total health status, and personal needs of ESRD patients.

CMS believes that the demonstration, conducted under CMS’ waiver authority, follows and improves upon a congressionally mandated demonstration to allow ESRD patients to enroll in managed care settings.



Department of Veterans Affairs Health Research Fun
On July 15, the House VA-HUD Appropriations Subcommittee marked up its FY 2004 budget. The budget provides for an $11 million increase in Veteran’s Affairs research funding, bringing the total program to $408 million for direct research expense. Kidney disease is one of 17 designated research areas that represent the high priority health care needs of veterans.

Additionally, the House Committee’s Veterans' Affairs Subcommittee on Health held a hearing to address research compliance and assurance within the Veterans Health Administration (VHA). The hearing also included testimony about the research community's issues with regard to recent and pending changes to the VHA research program. Nelda Wray, M.D. Chief Research and Development Officer in the Veterans Health Administration proposed changes to the research program. There is concern within the biomedical research community and Congress that the proposed research policy changes might have an affect on VA supported physician-investigators. The ASN is cooperating with the Friends of Veterans Affairs Research, and we will keep you apprised of any further developments.



CAKS Meets and Makes a Visit to Congress
The Council of American Kidney Societies (CAKS), which includes ASN, American Society of Pediatric Nephrology (ASPN), American Society of Transplantation (AST), National Kidney Foundation (NKF), Polycystic Kidney Disease Foundation (PKDF), and Renal Physicians Association (RPA) held their two-day annual meeting in Washington, DC, on July 7 and 8. After a brief business meeting and updates from the societies, the meeting focused on CAKS’ mission to serve as an information clearinghouse for the major kidney societies to maximize interaction and enhance and increase public policy attention on common initiatives.

Highlights of the meeting included presentations from Josie Briggs, M.D., Director, NIDDK/NIH and Brady Augustine, Special Advisor to the Administrator, Centers for Medicare and Medicaid Services (CMS) and visits to key Senate and House committees and staff members. Dr. Briggs emphasized that the potential impact of the NIH budget on NIDDK programs was a concern. With the prospect of a nominal increase in NIH funding for Fiscal Year 2004, NIH is making plans to protect “pay lines”. Dr. Briggs stressed that success would depend upon continued advocacy for the NIH budget and appropriate funding level increases, which has had bipartisan support. She encouraged CAKS to continue to provide advice to the NIH/NIDDK and maintain open lines of communication. She also advised CAKS to stress the importance of not increasing administrative costs at the NIH.

Mr. Augustine highlighted recent activities at CMS specifically related to kidney disease and End-Stage Renal Disease. He stressed his “open door” policy and welcomed comments and suggestions regarding CMS activities. Mr. Augustine gave an update on the newly released ESRD Demonstration Project, describing the project’s goal of improving the coordination of patient care. Mr. Augustine stressed that he felt regular dialogue between the individual societies and CAKS, regarding ESRD, was especially important in creating a unified response.

On the second day of the meeting, CAKS members broke into advocacy teams to meet with congressional and committee staff members to discuss NIH funding, workforce issues, physicians’ payments, Medicare immunosuppressive drug coverage, and organ donation. CAKS members provided several fact sheets to congressional staffers to share their concerns. Click here to read these fact sheets.

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