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ASA NEWSLETTER
 
 
May 2001
Volume 65
Number 5
 
WASHINGTON REPORT

ASA, AANA Present Opposite Viewpoints on Rollback of Medicare Supervision Rule

Michael Scott, Director Governmental and Legal Affairs


As noted in this column last month, Health and Human Services (HHS) Secretary Tommy Thompson on March 19 published an order suspending until May 18 the effective date of the Health Care Financing Administration (HCFA) final rule by which physician supervision of nurse anesthetists would be eliminated under the Medicare program. As stated in the order, the purpose of the 60-day suspension is to permit the Secretary to study the final rule, which was published by his predecessor at the very end of the Clinton Administration.

Secretary Thompson's action on the supervision rule is consistent with other actions he and various federal agency heads have taken with respect to a large number of final rules published in the last few days of the Clinton Administration. Some legal commentators in Washington have questioned the validity of the suspension orders, but in view of the fact that they are all of short duration, no legal challenges to the orders have been made to date.

Many legal analysts believe, however, that further suspension of the effective date of the Clinton final rule after the 60-day period would not stand up under legal challenge, unless at the same time the agency in question publishes a proposed rule for public comment, under which the final rule is to be modified or rescinded. On April 3, the General Services Administration (GSA) published a notice suspending until year end a Clinton final rule related to federal contractor qualifications, and at the same time published a proposed rule for public comment by which the final rule would be repealed.

This legal framework essentially means that Secretary Thompson, on or before May 18, must decide whether he wishes to modify or roll back the Clinton supervision rule, and if he does, HHS must publish a notice similar to that published by GSA. For practical purposes, therefore, the 60-day extension period represents a critical time for those favoring or opposing the supervision rule to advance their respective viewpoints to the Administration.

For its part, ASA has met with Secretary Thompson and members of his staff, various congressional leaders and Administration representatives in the White House and the Office of Management and Budget (OMB). ASA has also prepared and distributed an extensive white paper detailing the reasons why HCFA’s rationale for publishing the final rule does not meet the test, established by the Supreme Court, as the proper basis for overturning a longstanding regulatory provision such as the physician supervision requirement. In essence, ASA has argued that HCFA offers no scientific outcomes or other data demonstrating that patient safety would not be impaired by the rule change, but instead simply chooses to discount the scientific data pointing in the opposite direction.

Since the Washington legislative conferences of both ASA and the American Association of Nurse Anesthetists (AANA) are to be held simultaneously in early May, it seems certain that advocacy for and against the Clinton rule will intensify leading up to those conferences. In all likelihood, by the time this column is published, readers will have received a bulletin or other communication from ASA President Neil Swissman, M.D., detailing whatever action is taken by HHS by May 18.

HHS Seeks Comments on Patient Privacy Rule

In a press conference held on March 30, HHS Secretary Thompson expressed HHS's intention to simplify the new rules, published late last year and scheduled to take effect April 14, designed to protect the privacy of patient health information. The rules had been published pursuant to congressional mandate in the Health Insurance Portability and Accountability Act of 1996, and were summarized in this column in the March issue of the NEWSLETTER.

A large volume of public comments on the new rules, responding to an invitation from HHS after Secretary Thompson was confirmed, suggested the strong possibility that the effective date of the privacy standards could be delayed. On April 12, however, President Bush announced that he had directed Secretary Thompson to place the rules into effect as originally scheduled. It remains possible that HHS will propose changes as a result of the comments it has received.

Scully Nominated New HCFA Head

Thomas A. Scully, former President of the Federation of American Health Care Systems, has been nominated by President George W. Bush to serve as the new HCFA Administrator under HHS Secretary Thompson. Mr. Scully worked at OMB and in the White House during the previous George Bush Administration and is expected to serve as the current Administration's principal advocate in connection with legislation to restructure the Medicare program and develop a drug benefit for senior citizens.

HHS Proposes User Fee for Nonelectronic Claims

As part of its April 9 budget request, HHS renewed a proposal to assess Medicare providers a fee of $1.50 for claims not submitted electronically, and a like amount was charged for each duplicate or unprocessable claim. Justification for the requirement relates to HCFA’s effort to modernize its claim-processing operations.

Legislation would be required to authorize the charging of processing fees. In the past, providers have successfully blocked such legislation on the basis that smaller practices and institutions do not have the financial resources to submit claims electronically. At present, according to HHS, 97 percent of Medicare Part A claims are submitted electronically, and about 82 percent of Part B claims are submitted electronically.

Patient Protection Measure Readied for Introduction

In early April, the staffs of Senators Bill Frist (R-TN), Jim M. Jeffords (R-VT) and John B. Breaux (D-LA) made a final draft of their patients’ bill of rights bill available for limited public review. The bill is widely viewed as a compromise measure between the two extremes favored by conservative Republicans and by Democrats and liberal Republicans in the last Congress.

Representatives of the Patient Access Coalition, of which ASA was a member last year, report that the draft bill, with limited exception, contains principles concerning access to specialist care that the Coalition has aggressively supported for several years. A controversial provision contained in the bill, however, would allow States to opt out of the bill’s requirements if they could establish that premium costs had risen by a stated percentage. There is some suggestion that this provision may be dropped before the bill is introduced.

The draft bill would extend its protections to all 167 million Americans covered by private insurance and all fully insured state or local plans. This coverage provision is more liberal than that sought by conservative Republicans last year but does not go far enough to meet the demands of most Democrats in the Senate. Also unresolved is the thorny issue of liability of health plans for improper coverage decisions. President Bush has expressed support for a reasonable provision in this regard, but specifics are still missing. On April 11, a presidential health advisor called the draft bill very promising.


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The views expressed herein are those of the authors and do not necessarily represent or reflect the views, policies or actions of the American Society of Anesthesiologists.

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