DES MOINES, Iowa., Oct. 10, 2011 - Today, Agriculture Secretary Tom Vilsack joined business and community leaders to discuss the Administration's strategy to strengthen the U.S. economy and to highlight what passage of the American Jobs Act will mean for Iowans.

 

"The American Jobs Act provides common-sense steps we can take right now to put more people back to work and put more money in the pockets of working Americans, without adding a dime to the deficit," said Vilsack. "In Iowa, this Act will provide a tax cut for over 60,000 businesses, support the jobs of 4,100 teachers and first responders and immediately provide over 5,000 construction workers a job improving highways and other critical infrastructure. Iowa families will receive a tax cut of around$1,580."

 

Secretary Vilsack also highlighted the need for quick passage of the pending trade agreements with Columbia, Panama, and South Korea. The agreements were sent to Congress this week and are awaiting approval.

 

"Full implementation of all three agreements will help farmers and ranchers add more than $2.3 billion a year to the American economy, which will support nearly 20,000 jobs, said Vilsack. "The Korean agreement alone will increase agricultural trade by $1.9 billion and have a greater economic impact that the last nine trade agreements combined."

 

Full details on the three trade agreements and comprehensive fact sheets on how the agreements will benefit Iowa are available at: http://www.fas.usda.gov/.

  • U.S.-Korea Trade Agreement Iowa Fact Sheet
  • U.S.-Colombia Trade Promotion Agreement Iowa Fact Sheet
  • U.S.-Panama Trade Promotion Agreement Iowa Fact Sheet

The Obama Administration is calling on Congress to pass the American Jobs Act immediately. The Act has five components that will create jobs and strengthen Iowa's economy:

Tax Cuts to Help America's Small Businesses Hire and Grow

  • 60,000

Putting Workers Back on the Job While Rebuilding and Modernizing America

  • $385,900,000 in Iowa that could support a minimum of approximately 5,000
  • $287,200,000 in funds to Iowa to support up to 4,100
  • $132,600,000 in funding to support as many as 1,700
  • $56,700,000

 

Pathways Back to Work for Americans Looking for Jobs.

  • 34,000
  • Alongside these reforms, the President is reiterating his call to extend unemployment insurance, preventing 7,300
  • 800 adults and 2,300

 

Tax Relief for Every American Worker and Family

  • $51,000, will receive a tax cut of around $1,580.

 

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$95 Million Illinois Jobs Now! Project Will Create More Than 620 Jobs; Energy-Efficient Facility Will Help Develop New Technologies

URBANA - October 7, 2011. Governor Pat Quinn today joined University of Illinois President Michael J. Hogan to break ground on the school's new Electrical and Computer Engineering (ECE) Building. The $95 million facility will enhance educational opportunities, support research breakthroughs in computing, communications, nanotechnology and biotechnology, and set a new standard for energy-efficient buildings. The Illinois Jobs Now! project will create approximately 620 construction jobs, building what is projected to be the most energy-efficient engineering structure in the nation.

"The University of Illinois is home to some of the best and brightest minds in our state and we want to make sure they have the most cutting-edge technology available to them," Governor Quinn said. "Updated and energy-efficient higher education resources are vital to the success of our state's innovation and economic development."

The 232,000-square-foot building will include state-of-the-art classrooms, laboratories and equipment. The facility will consolidate programs now spread across the campus, creating an environment for cross-disciplinary innovation and expanding the University's potential for breakthrough discoveries. The advanced energy features are projected to make the facility the most energy-efficient engineering building in the nation. The combined structure is projected to reach zero net energy consumption on an annual basis, and would become the largest such structure in the United States.

"Great minds working together can plant seeds of innovation that may never take root when those same people work alone," President Hogan said. "The ECE department has a rich legacy of achievement - from transistors and medical imaging to LED lighting, communications and computing - and this new facility is an investment that will pave the way for new generations of breakthrough technology."

Design work on the facility is complete, and bids will be opened October 12. Construction is expected to start in November, with completion expected by August 2014. The ECE Building will be built to achieve LEED Platinum certification, the highest designation for a structure's energy efficiency and environmental impact. In addition, a solar energy component is planned from separate funds.

The ECE Building construction will be overseen by the Illinois Capital Development Board, which administers all non-road, state-funded construction projects. The $95 million facility will be built with $47.5 million in state capital funds and $47.5 million in private funds from university donors.

Governor Quinn's Illinois Jobs Now! program includes $1.5 billion for higher education, including $788 million for public universities and $400 million for community colleges. The $31 billion program is expected to create more than 400,000 jobs over six years.

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CHICAGO - October 4, 2011. Governor Pat Quinn today released a statement regarding Ford Motor Company's jobs announcement:

"I'm extremely pleased that Ford is strengthening its commitment to the State of Illinois to create 2,000 new jobs and stimulate the economy with an additional $200 million new investment."

"This is the direct result of a strong relationship we have forged with Ford and builds on our success in 2010 when we helped Ford create 1,200 new jobs and invest $400 million to produce the new Explorer SUV, which was supported by an expansion of my Administration's Economic Development for a Growing Economy (EDGE) tax credit designed to help revitalize the automotive industry, one of Illinois' leading employers."

"Ford and the UAW have worked together to reach an agreement that - when finalized- will provide a solid increase in jobs and investment. The kind of economic growth in Illinois that this agreement outlines would have multiplying benefits for our communities. My Administration looks forward to continue working closely with the UAW and Ford to expand their operations and put more people to work for a new production shift at the Chicago Assembly Plant that could begin early next year."

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Call on Obama to Keep Campaign Promise and Oppose Free Trade Agreement

Washington, DC - Today, Congressman Bruce Braley (IA-01) and Vice Chairs of the House Populist Caucus demanded answers from President Obama on the pending free trade agreements with South Korea, Colombia and Panama.  In a letter to the President, the Populist Caucus leadership questioned why Obama changed his position on the pending free trade agreements.  The letter points out many instances where Obama said he was opposed to the free trade agreements while he was campaigning for President.

"When it comes to trade, American workers prefer candidate Obama to President Obama." said Rep. Braley.

Congressman Braley serves as the Chairman of the Populist Caucus, which has advocated for proposals to create jobs in America.  The Caucus has supported various job creation legislation including bills that would reinvest in American manufacturing, rebuild our aging infrastructure and encourage more products to be made in America.

A PDF copy of the Populist Caucus letter to Obama can be viewed at the following link: http://go.usa.gov/8Jz

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Monday, October 3, 2011

More Conference Expenditures Placed Under Microscope

WASHINGTON - Senator Chuck Grassley has inquired about taxpayer dollars being spent on yet another conference, this time in Tokyo, as part of an "International Series" of conferences according to the Federal Circuit Court of Appeals website.  The intellectual property conference is being sponsored, in part, by the U.S. Patent and Trademark Office to the tune of $189,600.  The office is also sending several employees to the conference. In addition, the Federal Circuit Court of Appeals is apparently sending up to eight people to the international conference.

Grassley has previously looked at conference expenditures, most recently following a Justice Department Inspector General's office report outlining unacceptable amounts of spending.

"Between 2008 and 2010, spending on conferences at the Justice Department increased from $47.8 million to $91.5 million.  The Justice Department may or may not be the only bad egg in the bunch, but they helped shine a light on outrageous spending, just when we need to be tightening our belt.  A nearly $200,000 conference appears to be just why we need to put a microscope on conference expenses at agencies across the federal government," Grassley said.

Grassley sent letters to both the Department of Commerce and the Administrative Office of the U.S. Courts asking questions about the Tokyo conference and the "International Series."

Here are copies of the text of the letters.  Copies of the signed letters to the Department of Commerce and the Administrative Office of the U.S. Courts can be found here.

 

VIA ELECTRONIC TRANSMISSION

The Honorable Rebecca M. Blank

Acting Secretary

U.S. Department of Commerce
1401 Constitution Ave., NW
Washington, DC 20230

Dear Acting Secretary Blank:

I am writing because of information that I have received about spending related to an intellectual property conference in Tokyo, Japan, which is scheduled for late October 2011.  I am concerned about the amount of taxpayer dollars spent by Administrative agencies for conferences, seminars and travel, especially during this time of fiscal constraint.

 

The website for the Federal Circuit Court of Appeals (CAFC) states that the conference is part of an "International Series" of conferences that was developed in November 2010 to "look for the 'best practices in legal systems' worldwide and 'how those practices?both in terms of governance and the practice of law?relate to innovation and the betterment of societies.'" The website lists the Department of Commerce and the United States Patent & Trademark Office (USPTO) among those funding the conferences.  It is my understanding that the USPTO is spending approximately $189,600 to sponsor the Tokyo conference.

 

According to information I have received from a whistleblower, the USPTO will be sending at least four participants to the Tokyo conference, including its Director, Deputy Director and its Deputy General Counsel and the CAFC will be sending as many as eight participants including: the Chief Judge of the court, five other Circuit Judges, the Circuit Executive and Clerk of the court.

Consequently, I have a number of questions about the Tokyo conference, other conferences sponsored by USPTO and/or its affiliate, the Global Intellectual Property Academy (GIPA), and the amount of government funds being spent on travel by the USPTO.  Accordingly, please respond to the following requests for information:

 

  1. Has the USPTO previously sponsored or is it committed to sponsor any of the conferences in the International Series?  If so, for each such conference, set forth the date(s), location, title and subject matter.  Also, for each such conference, set forth how much the USPTO paid or is planning to pay to be a sponsor.

 

  1. Has the USPTO paid for any of its employees to attend any of the past conferences in the International Series?  If so, for each such conference, identify by name and title, the employee(s) who attended.  Also, for each such conference identify the date(s), location, title and subject matter.  Finally, for each such conference, set forth how much the USPTO paid for the employee(s) to attend, broken down by (a) conference fees, (b) travel expenses, (c) hotel expenses, (d) meals and (e) other expenses.

 

  1. Is the USPTO planning to pay for any of its employees to attend the Tokyo conference?  If so, identify by name and title, the employee(s) who are scheduled to attend.  Also, set forth how much the USPTO is planning to spend in connection with its employees attending, broken down by: (a) conference fees, (b) travel expenses, (c) hotel expenses, (d) meals and (e) other expenses.

 

  1. If you submit your responses after the Tokyo conference has taken place and employees attended, identify by name and title, the employee(s) who actually attended, if any.  Also, if applicable, set forth how much the USPTO actually paid for the employee(s) to attend, broken down by (a) conference fees, (b) travel expenses, (c) hotel expenses, (d) meals and (e) other expenses.

 

  1. Other than the Tokyo conference, is the USPTO planning on paying to have any of its employees attend any of the other conferences in the International Series?  If so, for each such conference, identify by name and title, the employee(s) who are scheduled to attend.  If specific individuals are not yet scheduled to attend, for each conference set forth how many individuals the USPTO is planning on paying for.  Also, for each such conference identify the date(s), location, title and subject matter.  Finally, for each such conference, set forth how much the USPTO is planning to pay for its employee(s) to attend, broken down by (a) conference fees, (b) travel expenses, (c) hotel expenses, (d) meals and (e) other expenses.

 

  1. During the last three years, has the USPTO sponsored any conferences or seminars?  If so, for each such conference or seminar, set forth the date(s), location, title and subject matter.  Also, for each such conference or seminar, set forth how much the USPTO paid to be a sponsor.

 

  1. During the last three years, has the USPTO paid for any of its employees to attend a conference or seminar?  If so, for each such conference or seminar, set forth the date(s), location, title and subject matter.  And for each such conference/seminar, identify by name and title, the employee(s) who attended.  Also, for each conference or seminar, set forth how much the USPTO paid for the employee(s) to attend, broken down by (a) conference fees, (b) travel expenses, (c) hotel expenses, (d) meals and (e) other expenses.

 

  1. During the next three years, is the USPTO planning to sponsor any conferences or seminars?  If so, for each such conference or seminar, set forth the date(s), location, title and subject matter.  Also, for each such conference or seminar, set forth how much the USPTO is planning to pay to be a sponsor.

 

  1. During the next three years, is the USPTO planning to pay for any of its employees to attend a conference or seminar?  If so, for each such conference or seminar, set forth the date(s), location, title and subject matter.  Also, for each such conference or seminar, set forth how much the USPTO is planning to pay for its employee(s) to attend.  If possible break down those amounts by: (a) conference fees, (b) travel expenses, (c) hotel expenses, (d) meals and (e) other expenses.

 

  1. Does the USPTO have a policy governing its sponsorship of conferences or seminars?  If so, and if that policy is in writing, provide a copy of the document.  If the USPTO has a policy but it is not in writing, set forth the policy and explain why it is not a written policy.

 

  1. Does the USPTO have a policy governing its paying for its employees to attend conferences or seminars?  If so, and if that policy is in writing, provide a copy of the document.  If the USPTO has a policy but it is not in writing, set forth the policy and explain why it is not a written policy.

 

These are basic questions, the answers to which should be readily available. Please respond in writing by October 14, 2011.

Should you have any questions, please do not hesitate to contact Janet Drew or Tristan Leavitt of my staff at (202) 224-5225.

Thank you for your attention to this matter.

Sincerely,

Charles E. Grassley
Ranking Member

 

 

VIA ELECTRONIC TRANSMISSION

Jill Sayenga

Acting Director

Administrative Office of the United States Courts
One Columbus Circle, NE
Washington, D.C. 20544

Dear Acting Director Sayenga:

I am writing because of information that I have received about spending related to an intellectual property conference in Tokyo, Japan, which is scheduled for late October 2011.  I am concerned about the amount of taxpayer dollars the Federal Judiciary and the Administrative Office of the U.S. Courts spend on travel, especially during this time of fiscal constraint.

The website for the Federal Circuit Court of Appeals (CAFC) states that the conference is part of an "International Series" of conferences that was developed in November 2010 to "look for the 'best practices in legal systems' worldwide and 'how those practices?both in terms of governance and the practice of law?relate to innovation and the betterment of societies.'" The website lists the Department of Commerce and the United States Patent & Trademark Office (USPTO) among those funding the conferences.  It is my understanding that the USPTO is spending $189,600 to sponsor the Tokyo conference.

According to information I have received from a whistleblower, the USPTO will be sending at least four participants to the Tokyo conference, including its Director, Deputy Director and its Deputy General Counsel and the CAFC will be sending as many as eight participants including: the Chief Judge of the court, five other Circuit Judges, the Circuit Executive and Clerk of the court.

Consequently, I have a number of questions about the Tokyo conference, the other conferences in the International Series and the amount of government funds being spent on travel by the Federal Judiciary.  Accordingly, please respond to the following requests for information:

 

1. Has the CAFC previously sponsored or is it committed to sponsor any of the conferences in the International Series?  If so, for each such conference, set forth the date(s), location, title and subject matter.  Also, for each such conference, set forth how much the CAFC paid or is planning to pay to be a sponsor.

 

2. Has the CAFC paid for any of its judges or employees to attend any of the past conferences in the International Series?  If so, for each such conference, identify by name and title, the judge(s) and/or employee(s) who attended.  Also, for each such conference identify the date(s), location, title and subject matter.  Finally, for each such conference, set forth how much the CAFC paid for the judge(s) and/or employee(s) to attend, broken down by (a) conference fees, (b) travel expenses, (c) hotel expenses, (d) meals and (e) other expenses.

 

3. Is the CAFC planning to pay for any of its judges or employees to attend the Tokyo conference?  If so, identify by name and title, the judge(s) and/or employee(s) who are scheduled to attend.  Also, set forth how much the CAFC is planning to spend in connection with its judges and/or employees attending, broken down by: (a) conference fees, (b) travel expenses, (c) hotel expenses, (d) meals and (e) other expenses.

 

  1. If you submit your responses after the Tokyo conference has taken place and CAFC judges or employees attended, identify by name and title, the judge(s) and/or employee(s) who actually attended, if any.  Also, if applicable, set forth how much the CAFC actually paid for the judge(s) and/or employee(s) to attend, broken down by (a) conference fees, (b) travel expenses, (c) hotel expenses, (d) meals and (e) other expenses.

 

  1. Other than the Tokyo conference, is the CAFC planning on paying to have any of its judges or employees attend any of the other conferences in the International Series?  If so, for each such conference, identify by name and title, the judge(s) and/or employee(s) who are scheduled to attend.  If specific individuals are not yet scheduled to attend, for each conference set forth how many individuals the CAFC is planning on paying for.  Also, for each such conference identify the date(s), location, title and subject matter.  Finally, for each such conference, set forth how much the CAFC is planning to pay for its judge(s) and/or employee(s) to attend, broken down by (a) conference fees, (b) travel expenses, (c) hotel expenses, (d) meals and (e) other expenses.

 

  1. During the last three years, has the Federal Judiciary (including the CAFC) sponsored any conferences or seminars?  If so, for each such conference or seminar, set forth the date(s), location, title and subject matter.  Also, for each such conference or seminar, set forth how much the Federal Judiciary paid to be a sponsor.

 

  1. During the last three years, has the Federal Judiciary paid for any of its judge(s) and/or employees to attend a conference or seminar?  If so, for each such conference or seminar, set forth the date(s), location, title and subject matter.  And for each such conference/seminar, identify by name and title, the judge(s) and/or employee(s) who attended.  Also, for each conference or seminar, set forth how much the Federal Judiciary paid for the judge(s) and/or employee(s) to attend, broken down by (a) conference fees, (b) travel expenses, (c) hotel expenses, (d) meals and (e) other expenses.

 

  1. During the next three years, is the Federal Judiciary planning to sponsor any conferences or seminars?  If so, for each such conference or seminar, set forth the date(s), location, title and subject matter.  Also, for each such conference or seminar, set forth how much the Federal Judiciary is planning to pay to be a sponsor.

 

  1. During the next three years, is the Federal Judiciary planning to pay for any of its judge(s) and/or employees to attend a conference or seminar?  If so, for each such conference or seminar, set forth the date(s), location, title and subject matter.  Also, for each such conference or seminar, set forth how much the Federal Judiciary is planning to pay for its judge(s) or employee(s) to attend.  If possible break down those amounts by: (a) conference fees, (b) travel expenses, (c) hotel expenses, (d) meals and (e) other expenses.

 

  1. Does the Federal Judiciary have a policy governing its sponsorship of conferences or seminars?  If so, and if that policy is in writing, provide a copy of the document.  If the Federal Judiciary has a policy but it is not in writing, set forth the policy and explain why it is not a written policy.

 

  1. Does the Federal Judiciary have a policy governing its paying for its judges or employees to attend conferences or seminars?  If so, and if that policy is in writing, provide a copy of the document.  If the Federal Judiciary has a policy but it is not in writing, set forth the policy and explain why it is not a written policy.

 

These are basic questions, the answers to which should be readily available. Please respond in writing by October 14, 2011.

WASHINGTON - U.S. Senators Chuck Grassley (R-Iowa) and Herb Kohl (D-Wis.) are pressing the Centers for Medicare and Medicaid Services (CMS) on missing a deadline for drafting regulations for the Physician Payment Sunshine Act (Sunshine Act), a new law requiring public disclosure of the financial relationships between physicians and the pharmaceutical, medical device and biologics industries.

"Prompt federal guidance is urgently needed to ensure a smooth path toward increasing disclosure, eliminating conflicts and ultimately providing patients with the tools they need to make informed health choices," Grassley and Kohl wrote in a letter to CMS Administrator Dr. Donald Berwick.

The Sunshine Act requires manufacturers to report all payments to physicians, including consulting fees, honoraria, travel and entertainment, and for the Department of Health and Human Services (HHS) to publicly disclose the identity of the manufacturer, physician, and the drug or device associated with the payment on the internet. Additionally, the law requires manufacturers and group purchasing organizations (GPOs) to report all ownership or investment interests held by physicians or members of their family, and for making that information public. The law required HHS to establish guidance on how manufacturers submit information and how the information would be made available to the public no later than October 1, 2011.

The Sunshine Act was developed by Grassley and Kohl after numerous investigations and hearings revealed that large sums of money were going to physicians for sometimes questionable purposes. Some of these payments were the subject of a federal criminal inquiry which resulted in $400 million in fines and legal costs paid by the major orthopedic medical device manufacturers. Ultimately, Congress passed the Sunshine Act as part of the health care reform law in response to growing concerns over industry payments to physicians and their potential negative effects on patient care and the need to restrain health care costs.

In their letter, Grassley and Kohl also asked why CMS failed to meet the statutory deadline and requested a timeline on establishing regulations.

Manufacturers and GPOs are required to start complying with the law by collecting payment data beginning January 1, 2012, and must begin reporting this information to the government on March 31, 2013. Starting September 30, 2013, the details of these payments must be made available to the public. Violations of the disclosure requirements can result in civil monetary penalties ranging from $1,000 to $100,000.

 

The text of the letter follows.

October 3, 2011

Donald Berwick, M.D., M.P.P

Administrator

Centers for Medicare and Medicaid Services

200 Independence Avenue, S.W.

Washington, D.C. 20201

 

Dear Administrator Berwick:

As authors and sponsors of the Physician Payments Sunshine Act (Sunshine Act), which was included in the Patient Protection and Affordable Care Act, we write today to express our severe disappointment in the Centers for Medicare and Medicaid Services (CMS) for failing to meet the October 1, 2011, deadline to draft the regulations mandated by the health care reform law.

While many interactions between the pharmaceutical and medical device industries and medical professionals are beneficial to medical science and lead to innovation, the Sunshine Act was developed after numerous investigations and hearings revealed that large sums of money were going to physicians for sometimes questionable purposes.  Some of these payments were the subject of a federal criminal inquiry which resulted in $400 million in fines and legal costs paid by the major orthopedic medical device manufacturers.  Ultimately, Congress passed the Sunshine Act in response to growing concerns over industry payments to physicians and their potential negative effects on patient care and efforts to restrain healthcare costs.

Under the provisions of this law, manufacturers are required to report to the Secretary of the Department of Health and Human Services (HHS) all payments to physicians, including consulting fees, honoraria, travel, and entertainment, for public disclosure by the Secretary.  The Secretary is then instructed to include the identity of the manufacturer, the physician, and the drug or device associated with the payment on the internet.  An additional provision requires manufacturers and group purchasing organizations (GPOs) to report all ownership or investment interests held by physicians or members of their family, also for public reporting by the Secretary.  It is our understanding that the Secretary has delegated implementation of this provision to CMS.

Manufacturers and GPOs are required to start complying with the law by collecting data beginning January 1, 2012, and must begin reporting this information to the government on March 31, 2013.  Beginning on September 30, 2013, the details of these payments are to be made available to the public.  Violations of the disclosure requirements can result in civil monetary penalties ranging from $1,000 to $100,000.

In order to ensure that manufacturers had adequate time to comply, the law required that the Secretary establish procedures not later than October 1, 2011, describing how manufactures are to submit information and how the information will be made available to the public.  In addition, in establishing these procedures the Secretary was required to "consult with the Inspector General, affected industry, consumers, consumer advocates and other interested parties to ensure that the information made available to the public is presented in the appropriate context."

The deadline for establishing procedures has passed and there has not been, to our knowledge, adequate consultation with either industry representatives or consumer advocates.  Therefore, we are concerned that CMS's failure to implement the statutory provisions on time with clear guidance, standards and definitions will create confusion among both manufacturers and consumers, potentially placing taxpayer dollars at risk.

Although many of the large pharmaceutical and medical device manufacturers, universities, and even the National Institutes of Health (NIH) have already begun to implement disclosure policies voluntarily, we are concerned that smaller companies are waiting for clarity and direction from CMS and will find the lack of timely guidance burdensome and costly.  Prompt federal guidance is urgently needed to ensure a smooth path toward increasing disclosure, eliminating conflicts, and ultimately providing patients with the tools they need to make informed health choices.

In a conference call with our staff on Friday, September 23, 2011, your agency assured us that you have sent the proposed rule over to the Office of Management and Budget (OMB) for review. So that we may better monitor this progress, please answer the following questions in writing no later than October 14, 2011:

(1)   What is your timetable for implementing the Sunshine Act?

(2)   When did you originally send the proposed rule to the Office of Management and Budget (OMB)?  Please include any dates that follow-up was conducted and for what reason.

(3) Why have you failed to meet the statutory deadline?

(4) What is the anticipated release date of the preliminary regulations?  How long will the regulations be open for comment as required by the statute? What is your timeline for issuing final regulations?

In addition to your written response, please have the appropriate CMS officials contact our staff no later than October 7 to schedule an in-depth briefing on these issues and an open discussion on a path forward that allows both a timely implementation and a robust comment period.

Should you have any questions regarding this letter, please contact Erika Smith of the Senate Judiciary Committee staff at (202) 224-5225 or Jack Mitchell of the Senate Special Committee on Aging staff at (202) 224-5364. Thank you for your immediate attention to this important matter.

Sincerely,

 

Charles E. Grassley                       Herb Kohl

Ranking Member                         Chairman

Committee on the Judiciary                      Senate Special Committee on Aging

Moline, IL...State Representative Rich Morthland (R-Cordova) has filed legislation offering sales tax exemptions for Illinois farmers. House Bill 3817 exempts the sales tax imposed on fence posts, fencing, and farm gates. House Bill 3818 exempts the sale tax imposed on baling twine, baling wire, plastic bags, plastic sleeves, and plastic sheeting

Representative Morthland, a seventh generation Illinois farmer, explained that farmers cross the Mississippi River to Iowa to make agricultural supply purchases because Iowa has a more favorable tax structure.

"Every time a farmer crosses the river to buy agricultural products, the State of Illinois loses employment potential and revenue opportunities on all of the purchases made that currently do not qualify for the sales tax exemption," Morthland said.

Morthland's legislation requires that the purchaser certifies the items will be used for farm production.

"Sales taxes on agricultural production goods act like a cumulative value added tax which, incidentally, Illinois rejected under Rod Blagojevich," Morthland said. "Some people will look at this like, 'it's just fence materials and twine,' but to the Illinois farmer who buys in bulk, these taxes can be burdensome."

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Finance Senators Release Report Showing Companies Intentionally Increased Frequency of Home Health Visits to Manipulate Reimbursement Rates

Washington, DC - Senate Finance Committee Chairman Max Baucus (D-Mont.) and senior Finance Committee Member Chuck Grassley (R-Iowa) today released a Finance Committee staff report showing tactics used by major for-profit home health companies to game Medicare.  The result has been waste of taxpayer dollars and the delivery of what could be medically-unnecessary patient care to increase the companies' profits.  Baucus and Grassley initiated the investigation into the improper practices as part of the Committee's oversight role of the Medicare and Medicaid programs and the Senators' ongoing commitment to protect patients and taxpayer dollars from waste, fraud and abuse.

"The gaming of Medicare represents serious abuse of the home health program," said Baucus.  "Elderly patients in the Medicare system should not be used as pawns to increase a company's profits. Especially in these tough economic times, taxpayers simply cannot afford for their dollars to be wasted on unnecessary care.  We are going to continue to crack down on these companies to ensure taxpayer dollars are used efficiently and Medicare patients are protected."

"The reimbursement policy encourages gaming, and gaming is what's occurred.   Companies are doing everything they can to make as much money as possible, whether the patients need the care or not.  The federal government needs to fix the policy that lets Medicare money flow down the drain.  This can't wait until tomorrow.  It should have been done yesterday.  The longer this kind of policy continues, the more Medicare's budget balloons, and the bigger the burden on taxpayers," Grassley said.

In May 2010, Baucus and Grassley began their investigation into home health therapy practices at Amedisys, LHC Group, Gentiva, and Almost Family in response to a media report that these home health companies took advantage of the Medicare therapy payment system by providing medically-unnecessary patient care.

The Committee staff report released today examines documents provided by the companies which show how therapists were encouraged to target the most profitable number of therapy visits, even when patient need may not have required such visits.  In addition, therapy visit records for each company showed concentrated numbers of therapy visits at or just above the point at which a "bonus" payment was triggered by the Medicare program.

Internal documents from three of the four companies, Amedisys, LHC Group and Gentiva, provided evidence of top-down strategies to game Medicare.  Highlights from the report include :

  • Managers encouraged therapists to meet a 10-visit target that would have increased their payments from Medicare.
  • An "A-Team" tasked with developing programs to target the most profitable Medicare therapy treatment patterns.
  • Therapists and regional managers that were pressured to follow new clinical guidelines developed to maximize Medicare reimbursements.
  • Top managers instructed employees to increase the number of therapy visits provided in order to increase case mix and revenue.
  • A competitive ranking system for management aimed at driving therapy visit patterns toward profitable levels.
  • Evidence that management discussed increasing therapy visits and expanding specialty programs to increase revenue.

The Medicare Part A program pays out an estimated $19 billion yearly for home health care.  Fraud, waste and abuse in the health care system cost Americans an estimated $60 billion a year, approximately three percent of total health care spending.

Baucus and Grassley have led numerous major investigations of the health care industry to protect consumers and taxpayer dollars.  Earlier this year, when their investigation found that the drug company Sanofi interfered in the approval of generic alternatives to its blood-thinner drug Lovenox, the Finance leaders called on the Food and Drug Administration (FDA) to help guarantee consumers have access to affordable generic medications.  Last December, Baucus and Grassley released a report detailing the relationship between Abbott labs and a Maryland doctor who allegedly implanted nearly 600 unnecessary cardiac stents into his patients, costing the federal government as much as $3.8 million in overpayments.  The specific stent case highlighted in the Senators' report is indicative of a widespread, national problem of unnecessary stenting.  The Senators also spearheaded a two year inquiry which revealed undisclosed side effects of the diabetes drug Avandia.  This resulted in the FDA restricting use of the drug, ensuring that patients and doctors have the information they need to make safe, informed decisions about their medication.

The Committee's full report is available here.

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Moline, IL...State Representative Rich Morthland's (R-Cordova) House Resolution 328 directed the Illinois Commission on Government Forecasting and Accountability to conduct an objective, non-political examination of the State's policy of charging "ad valorem" Illinois sales taxes on motor fuel. This report revealed various factors contributing to the price of gas sold in Illinois.

"Our gasoline sales tax of 6.25% makes Illinois the 3rd highest total tax on fuel in the nation," Morthland said. "This tax has a compounding effect as it increases when gas prices increase. This contributes to flight to Iowa and other states that don't have such a punitive tax structure." Morthland continued, "When we buy our gas in Iowa, it's not uncommon to pick a few groceries or other items there." 

The COGFA report speculates that this tax structure has a negative on business in Illinois.

"It's nice to have the income, but it's not necessarily a good dollar in if it's hurting our state and derailing Illinois jobs by pushing sales across state borders," Morthland said. "I am working on a form of tax relief for border communities in Illinois to restore our competitive edge."

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IOWA FARM BUREAU STUDY ESTIMATES MISSOURI RIVER FLOODING TO CAUSE $207 MILLION IN CROP AND ECONOMIC LOSSES

WEST DES MOINES, IOWA - Oct. 3, 2011 - This year's devastating flooding on the Missouri River caused an estimated $207 million in lost crop sales and related economic activity in six western Iowa counties that border the river, according to a new study commissioned by the Iowa Farm Bureau Federation (IFBF).

The flooding began in late June when the U.S. Army Corps of Engineers opened up a series of dams in the Dakotas to release water caused by heavy snows and record rains. Farmers are finally seeing the floodwaters recede and assessing the damage which includes severely damaged roads and the destruction of several hundred thousand acres of corn and soybean fields.

The study focused on Fremont, Pottawattamie, Mills, Woodbury, Harrison and Monona counties and analyzed the direct and indirect economic impacts from crop losses from flooded fields, said Dave Miller, IFBF director of research and commodity services. The study also factored in the impact of lost wages as the income of the lost crops won't circulate in the western Iowa communities.

"This study shows the repercussions of the lost cropland and economic activity in these counties," added Miller. "On a business level, farmers won't be purchasing machines or inputs such as fertilizer for land. But there is also a household effect with reduced expenditures in those counties."

For the farmers in the six-county region, the flooding cost $46.1 million in net income compared to pre-flood estimates.  That total included losses on flooded acres that can't be harvested, as well as yield losses from affected crops that were within a mile of the flooded area. The study also factored in the cost of seed, fertilizer and other inputs that farmers had already invested in their 2011 corn and soybeans before the fields were damaged or wiped out by flooding.

The study also accounted for potential crop insurance indemnity payments that farmers will receive because their crops were destroyed, as well as payments from the U.S. Department of Agriculture's Supplemental Revenue Assistance payments (SURE) program, which provides financial assistance for crop production and or quality losses due to a natural disaster.

Fremont County suffered the highest losses, at an estimated $52.2 million; with $43.9 million in direct crop income loss and $8.3 million indirect losses from the damaged fields. Harrison County suffered $36.7 million in crop and other economic losses, and Monona County lost $32.3 million.

Losses in the remaining Missouri River counties were: Pottawattamie at $31.2 million; Mills at $22.2 million and Woodbury at $14.7 million.

Miller emphasized that the study measured losses of economic activity from lost crop sales and didn't factor in losses to personal property, or the steep cost of rebuilding roads, levees and other infrastructure damaged or destroyed by the months of flooding.

"This is really just the tip of the iceberg on economic losses from the flooding," Miller said. "But we hope this study will provide valuable information to help farmers, community leaders and lawmakers as they rebuild the region and push for policies to prevent or minimize flooding in the future."

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