AAHomecare Meets with Key Policy Advisors

Washington

One way to influence Congress’ decisions is to convince the policy advisors who provide data to lawmakers. Following this model, the American Association for Homecare last month intensified its lobbying efforts, meeting with representatives from both the Medicare Payment Advisory Commission and the U.S. General Accounting Office, to discuss drug pricing and national competitive bidding for durable medical equipment.

AAHomecare first met with representatives from the GAO, the government office in charge of evaluating the success of Medicare’s two DME competitive bidding demonstrations. Representing the Coalition for Access to Medical Services, Equipment and Technology, AAHomecare and several consumer advocates told the GAO that competitive bidding is not good for providers, manufacturers or consumers.

“I think we demonstrated to the GAO how complex this issue is,” said Tom Connaughton, the association’s president. “While competitive bidding sounds like apple pie and motherhood, the GAO representatives had an opportunity to hear the negative impact it will have. I believe that they were particularly impressed by the arguments presented by the consumer representatives.”

Also last month, AAHomecare met with MedPAC, a commission whose health-care-reform advice lawmakers often heed. Currently drafting its June report to Congress, MedPAC is considering many cost-cutting measures, including the reform of the “average wholesale pricing” system for Part B drug reimbursement.

Numerous government reports have faulted the current reimbursement system — which pays 95 percent of the AWP — saying that AWP does not reflect true market rates. As recently as March 3, the U.S. Congressional Budget Office suggested reducing Part B drug reimbursements from 95 to 85 percent of AWP.

But AAHomecare insisted that any reforms should consider the costs of the services required to provide Part B drugs, and noted that the MedPAC staff “seemed to be enlightened about the intensity and frequency of the services provided.”

At the same time, AAHomecare continues to meet directly with lawmakers, targeting members of the three congressional committees with jurisdiction over home health care: The Senate Finance Committee, the House Energy and Commerce Committee and the House Ways and Means Committee.

In light of current budget woes, and the costs of waging war in Iraq, AAHomecare cannot afford to relent in its lobbying campaign, the association said.

“With Congress already considering Medicare and Medicaid reductions even before the budget resolution process is concluded, and the Bush Administration asking for an additional $70-plus billion, one can only presume that this will make dollars for anything other than defense and homeland security that much harder to come by.”

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