11 Nov 2011

Agency Confirms Poor Oversight of Federal Discount Drug Program

By Grassley Press

WASHINGTON - Sen. Chuck Grassley of Iowa today called for effective oversight of the federal discount drug program after the federal agency in charge of it confirmed it has not conducted a single audit since the program began in 1992.

"This program is growing in popularity," Grassley said.  "That will only increase under the health care overhaul law, which increased eligibility.  The federal government needs to get a handle on potential abuse before program growth gets out of hand, the taxpayers have to pay for it, and program sustainability is in question."

The government entity that runs the 340B program, the federal Health Resources and Services Administration (HRSA), confirmed in a letter to Grassley, in response to an inquiry from Grassley and Sen. Orrin Hatch and Rep. Fred Upton, that it has not conducted any program audits itself.  The agency said it has referred only two cases for outside audit, one to an inspector general and one to the Justice Department.

"Those were both very narrow cases," Grassley said.  "With the lack of oversight, the taxpayers through state and federal governments could be grossly overpaying for prescription drugs and not know it, and that situation could continue to accelerate.  The agency needs to start conducting oversight and keep going."

The health care reform law enacted last year expanded the 340B program to include additional types of hospitals.  The law also included measures to improve program integrity, including provisions to prevent drug manufacturers from overcharging program participants and sanctions in the form of payments to manufacturers for eligible hospitals and other health care entities that violate program requirements.  However, the Government Accountability Office said more steps are needed, including audits.

HRSA's response to Grassley is available here.  Background on the cases referred by HRSA to the Health and Human Services Office of Inspector General and Justice Department are available here and here. Information on the Grassley-Hatch-Upton inquiry to HRSA is available here.

The Government Accountability Office September report concluding more oversight is necessary is available here.  A June 2011 Health and Human Services Inspector General report that raised questions of program integrity without proper federal oversight of taxpayer dollars is available here.

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11 Nov 2011

Billions saved if Pay-for-Delay deterring legislation were enacted

By Grassley Press

Kohl-Grassley Generic Drug Bill Would Save Taxpayers Nearly $4.8 Billion, Congressional Budget Office Says

 

WASHINGTON - A new Congressional Budget Office (CBO) estimate finds that a bipartisan bill aimed at cutting costs by encouraging competition from generic drugs would save taxpayers nearly $4.8 billion over the next decade.

CBO anticipates that enacting the Preserve Access to Affordable Generic Drugs Act (S. 27) would accelerate the availability of lower-priced generic drugs and generate $4.785 billion in budget savings between fiscal years 2012 and 2021. CBO also estimates that earlier entry of generic drugs affected by the bill would reduce total drug expenditures in the U.S. by roughly $11 billion over the decade.

The CBO estimate can be found here.

The bill would deter "pay-for-delay" settlements in which brand name drug companies settle patent disputes by paying generic drug manufacturers in exchange for the promise of delaying the release of the generic version into the market. Under the legislation, these anti-consumer pay-off agreements would be presumed illegal and the Federal Trade Commission (FTC) would be provided the authority to stop the agreements.

"Generic drugs are essential to making medicine affordable and holding down costs for taxpayers," Kohl said. "As CBO's new cost estimate shows, backroom pay-for-delay deals are keeping generic drugs off the shelves at a great cost to consumers and taxpayers. Congress and the Joint Select Committee on Deficit Reduction should take this opportunity to fix this problem."

"CBO estimates that there would be significant savings to both the federal government and consumers if our legislation were to be enacted. When people across the country are having a hard time making ends meet, this could be a real boost to their bottom line," Grassley said.  "I urge the deficit reduction committee to include this legislation in their efforts to make the necessary reductions in the federal budget."

Last month, Kohl and Grassley urged the Joint Select Committee on Deficit Reduction to include the bill as part of its budget-cutting effort. The letter can be found here.

The Federal Trade Commission also released a report last month that found that drug companies entered into 28 potential pay-for-delay deals in FY 2011, nearly matching the previous fiscal year's record of 31 deals. Overall, the agreements reached in the latest fiscal year involved 25 different brand-name pharmaceutical products with combined annual U.S. sales of more than $9 billion.

In July, the Senate Judiciary Committee favorably reported the Preserve Access to Affordable Generic Drugs Act.

Previously, CBO estimated that the bill would save the federal government - which pays approximately one-third of all prescription costs - $2.68 billion over ten years. The president included a provision to end pay-for-delay settlements in his FY 2012 budget and estimated it would save the federal government $8 billion over ten years.

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11 Nov 2011

A simple 'thanks' may boost well-being, from the Harvard Mental Health Letter

By Rick Martin

BOSTON–Before digging into Thanksgiving dinner, it is customary to take a moment to give thanks for the people and events that positively shape our lives. But, as the November 2011 issue of the Harvard Mental Health Letter reveals, it may be beneficial to express gratitude on a more regular basis.

Research shows that gratitude is strongly and consistently associated with greater happiness. Reflecting on what one is grateful for results in more positive emotions, greater satisfaction from good experiences, improved health, greater ability to deal with adversity, and stronger relationships.

Editor in Chief Dr. Michael Miller notes that whether someone is thankful for past blessings, present happenings, or is focused on remaining positive for the future, expressing gratitude forces him to refocus on what he has instead of what he lacks. And, while any expression of gratitude is likely to boost morale, like a muscle, this mental state grows stronger with use and practice.

This month`s issue reviews the benefits of gratitude and offers advice on how to cultivate this state of mind, from writing a thank you note to praying or meditating.

Read the full-length article: "In praise of gratitude"

Other topics covered in this issue include :

  • Preventing mental illness in children with depressed parents
  • Causes of common memory lapses
  • Could nicotine boost weight loss?
  • Best psychotherapy for social anxiety disorder
  • People with borderline personality disorder often recover with time
  • Sleeping problems increase chances of cognitive decline
  • Is it possible to become addicted to chocolate?

The Harvard Mental Health Letter is available from Harvard Health Publications, the publishing division of Harvard Medical School, for $59 per year. Subscribe at www.health.harvard.edu/mental or by calling 877-649-9457 (toll-free).

XXX

08 Nov 2011

Public access to doctor disciplinary data must be restored

By Sen Chuck Grassley
WASHINGTON - Senator Chuck Grassley is continuing his effort to restore public access to data on malpractice payouts, hospital discipline and regulatory sanctions against doctors and other health professionals and to hold accountable the federal government official who shut down access to this information.

In a letter sent to the Secretary of Health and Human Services, Grassley said the department's response to his inquiry of October 7 was incomplete even while revealing that the Health Research and Services Administration (HRSA) prematurely jumped to conclusions regarding a reporter who used publicly available information to track down the identity of a doctor with a record of malpractice cases.  Grassley said that in doing so, the federal government undermined its own mandate to "enhance the quality of healthcare, encourage greater efforts in professional peer review and restrict the ability of incompetent healthcare practitioners to relocate without discovery of previous substandard performance or unprofessional conduct."  Instead, Grassley said it looks like HRSA was trying to protect a single physician who had a malpractice suit and disciplinary action filed against him.

Grassley said whoever made this decision needs to be held accountable and that the Public Use File in question should be fully restored on the HRSA website.  "Department officials are misguided if they think they can make this issue go away with the response sent to my first letter of inquiry," Grassley said.  "This database contains information intended for public consumption, and efforts to shutter access will be fought by those of us committed to transparency where public dollars and the public interest are at stake."

Click here to read Grassley's November 3 letter.  Click here to read Grassley's October 7 letter.  Click here to read Grassley's October 17 letter.  Click here to read the response from the HRSA Administrator to Grassley's October 7 letter and attachments one, two and three.

 

In addition, below is the text of Grassley's November 3 letter.

November 3, 2011

 

The Honorable Kathleen Sebelius

Secretary

U.S. Department of Health and Human Services

200 Independence Avenue, SW

Washington, D.C., 20201

 

Dear Secretary Sebelius:

On October 7, 2011, I wrote to the Health Research and Services Administration (HRSA) regarding its decision to remove the publically available National Practitioner Data Bank's (NPDB) Public Use File (PUF) from its website.  For years the PUF has served as the backbone in providing transparency for bad acting healthcare practitioners and has been used by researchers and consumer groups to calculate trends in disciplinary actions by state medical boards.

On November 1, 2011, HRSA responded to my letter and provided a set of heavily redacted documents.  However, HRSA failed to respond fully, and the information provided raises additional concerns.  For example, question 4 asked who was responsible for the decision to remove public access to the PUF and the response merely said it was made by HRSA leadership.

Question 1 asks HRSA how it reconciles the claim in the letter to Mr. Bavley that "information reported to the NPDB is confidential and it's not to be disclosed or redisclosed outside of HHS except in furtherance of professional review activities" with the fact that the statute clearly contemplates that the data will be public in a de-identified form. HRSA responded by stating:

The initial information HRSA received did not indicate Mr. Bavley had used the Public Use File (PUF).  . . . HRSA's letters related to use of confidential data from NPDB itself-not from the Public Use File.  Mr. Bavley subsequently informed HRSA that he had not used the NPDB, but had instead conducted research using data from the PUF.

HRSA's response makes it apparent that HRSA simply accepted the complaint of the physician involved at face value and jumped to conclusions about how Mr. Bavley obtained the information.  Once HRSA learned of its mistake, it then compounded the error by shutting down access to information that Congress intended to be public through the PUF.  All Mr. Bavley did was use publicly available data, and HRSA's response to that was to shut down access to that data for everyone.  Moreover, HRSA has still failed to restore the PUF to its website.

Perhaps more puzzling is why HRSA was going against its mandate with respect to the NPDB PUF.  The intent of the legislation that created the PUF was to enhance the quality of healthcare, encourage greater efforts in professional peer review and restrict the ability of incompetent healthcare practitioners to relocate without discovery of previous substandard performance or unprofessional conduct.  However, from the documents provided by HRSA it appears that instead of protecting the interest of public health, its purpose was to protect a single physician who had a malpractice suit and disciplinary action filed against him.

Instead of conducting its own research into the professional conduct of Dr. Tenny, HRSA appears to have over reacted to the complaint of a single physician based on no evidence other than that he received a call from the press.   This action, and the subsequent action of removing public access to the PUF, flies in the face of HRSA's mandate to enhance the quality of healthcare.

In light of all these circumstances, full public access to the PUF should be restored to HRSA's website immediately.  Additionally, I request that the individual at HRSA responsible for the decision to remove the public access to the PUF come in and brief my staff immediately.  As part of this briefing, please bring the unredacted copies of all documents HRSA supplied as part of my initial inquiry.

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

Sincerely,

Charles E. Grassley

Ranking Member
08 Nov 2011

Hoarding gaining attention and new approaches, from Harvard Women's Health Watch

By Rick Martin

BOSTON–The problem of hoarding used to be largely out of sight. Compulsive hoarders typically avoid visitors and rarely seek help. But television shows such as Hoarders and Hoarding: Buried Alive have increased public awareness by presenting vivid pictures of hoarding to millions of viewers. Mental health professionals are also taking a fresh look at the problem, reports the November 2011 issue of Harvard Women's Health Watch.

Compulsive hoarders acquire and accumulate objects in such large and disorderly quantities that their living space becomes dangerous or impossible to use for normal activities. Stockpiling paper is especially common. Vast stacks of old newspapers, magazines, books, mail, and lists pile up, leaving no space to sleep or eat. Worse, the piles may catch fire or topple over, causing injury or death.

Hoarding was once considered a symptom of obsessive-compulsive disorder, but mental health professionals now believe it's its own disorder and have come up with new criteria for diagnosing it.

Most hoarders need professional treatment, says Harvard Women's Health Watch, but there are several things concerned relatives and friends can do to help, including the following:

Listen. Let the hoarder tell her story. Respect her perspective and her attachment to her possessions. Don't tease or criticize.

Go slow. There's no need to rush changes unless the hoarder's living situation is unsafe or she needs to move to smaller quarters or a nursing facility.

Engage. Involve the hoarder in decisions about where to put things and what to throw out.

Provide structure and support. During the decluttering process, keep her company and help her stay focused on one area at a time.

Lift and tote. An elderly hoarder may need family, friends, or professional cleaners or movers to help with handling the clutter.

Work with others. Many communities have hoarding task forces that address psychiatric, legal, geriatric, and housing concerns. Check with your local Council on Aging.

Read the full-length article here: "When keeping stuff gets out of hand"

Also in this issue:

  • What screening tests do you need after age 75?
  • Even a little exercise helps a woman's heart
  • Sleep apnea and dementia in older women
  • Cholesterol-lowering foods versus low-saturated-fat diet
  • Reclast and Prolia for osteoporosis

Harvard Women's Health Watch is available from Harvard Health Publications (www.health.harvard.edu), the publishing division of Harvard Medical School, for $28 per year. Subscribe at www.health.harvard.edu/womens or by calling 877-649-9457 (toll-free).

XXX

01 Nov 2011

Davenport School of Yoga expands to Bettendorf

By Anne Gallagher

DAVENPORT SCHOOL OF YOGA EXPANDS TO SECOND LOCATION

New Bettendorf Yoga Studio Opens Nov. 7

Davenport School of Yoga opens a second yoga studio Nov. 7 at 3420 Towne Point Drive, Bettendorf. To celebrate, a new curriculum has been developed to include special classes for parents and children to take together, as well as seniors seeking to maintain an active lifestyle.

"A number of our current students come from Bettendorf, Pleasant Valley and Leclaire. We believe this is the right time to expand to serve these students," says Davenport School of Yoga founder Jeani Mackenzie.

"Our focus is on creating health improvements for each individual, no matter what their skill level. The school is based in traditional western Hatha yoga, which takes the body through its full, natural range of motion in a series of simple movements. No matter what your starting point, the result of yoga is improved strength, flexibility, balance, coordination and concentration."

A complete course and fee schedule is available by visiting www.davenportschoolofyoga.com . An open house for the Bettendorf studio will be held Nov.12. All morning classes will be free to guests. Instructors will be providing free demonstrations from 11 to 2 p.m. Walk-in guests are welcome.

Mackenzie has been teaching yoga for more than 32 years. Her original studio is located at 421 Brady Street, Davenport.

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01 Nov 2011

Participate in the National PTA's Healthy Lifestyles Month with TOPS

By Rick Martin

MILWAUKEE, WI - With the increasing prevalence of childhood obesity and other health problems, it's important that parents encourage and teach kids about nutritious food options and physical activity.  The National PTA's (Parent Teacher Association) Healthy Lifestyles Month this November is an opportunity to use creative events and activities to show that living healthfully can be fun.  TOPS Club, Inc. (Take Off Pounds Sensibly), the nonprofit weight-loss support organization, provides advice to promote wellness at home and get involved with the PTA Healthy Lifestyles initiative.


The facts

According to the Centers for Disease Control and Prevention, children and adolescents should participate in 60 minutes of physical activity each day.  Today, there are more video games, less homemade meals, and a reduction of physical education and sports programs at school - trends that have contributed to a growing problem of decreased physical activity among children.  One in three children and adolescents are overweight or obese, and according to the American Diabetes Association, one in every 400 children has diabetes.

Although there has been an increase in childhood obesity, there has also been a rise in initiatives to temper this trend.  Michelle Obama's "Let's Move" campaign, a program that TOPS supports, is one such plan that ties into the goals and message of Healthy Lifestyles Month.


It starts at home

It's important to develop healthy habits at home, so children can go to school, friends' houses, and other places, ready to make sensible, healthy choices.

1. Physical activity - Get moving as a family and demonstrate to kids the necessity of exercise, which can also boost self-esteem and confidence and reduce stress.

• Take a group walk or bike ride around the neighborhood after dinner.
• Find free or low-cost physical activity areas in your community, such as a playground, bike trail, tennis court, or park.
• Take on active chores as a family, like raking leaves or shoveling snow.
• Use pedometers and have a contest to see who takes the most steps in a given week.
• Go to the gym as a family.  Many fitness centers offer discounted memberships.

2. Nutrition - While parents typically decide what their children eat, kids will often eat what is available to them.  Surround kids with healthy snacks and homemade meals to ensure that they're making good choices.

• Serve fresh, frozen, and canned fruits and vegetables.  Consider more unique snack ideas like homemade smoothies, a fruit salad, or vegetables and hummus dip.
• Offer water, fat-free milk, or 100 percent fruit juice with no sugar added.
• Since nuts and trail mix are often high in calories, serve them in small portions along with another healthy snack.
• Don't force kids to clean their plates if they are full.

3. Grocery shopping - Before going to the store, make a list of groceries your family needs.  Explain to the kids that you will only buy what's on the list to avoid unhealthy options slipping into the cart.  When making your way through the store, focus on the perimeters.  These areas contain healthier options, such as produce and dairy.  Also, never shop with an empty stomach, so you aren't vulnerable to buying extra foods.


Get involved at school

There are numerous ways to become engaged at your child's school.  Joining your local PTA can help you and other parents impact what's served at lunch, emphasize the importance of physical activity during the school day, and plan activities to promote health and wellness.  Here are some PTA program and activity ideas that will keep families moving and promote wellness:

• Create a document for parents about physical activity areas and resources within the community.
• Host a fundraiser for new fitness equipment.  Skip the candy bars and cookies and sell services, magazines, candles, cookbooks, or other alternatives to sweets.
• Plan a 5K run/walk or walk-a-thon event for the school district and encourage families to participate. 
• Hang up posters and other educational materials in the cafeteria to make students aware of the importance of a nutritious meal.
• Hold a seminar for parents with a health and wellness expert.
• Organize a healthy Family Fun Night with nutritious snacks, games in the gymnasium, such as basketball or kick ball, a dance, food trivia, and more.

It's also important to find out if your local school district has a wellness policy.  This should include nutrition education goals, physical activity objectives, guidelines for food available at school, opportunities for parents and students to get involved with the policy development, and plans for evaluation.  The best place to begin inquiring about a school wellness policy is at the district office.

TOPS Club Inc. (Take Off Pounds Sensibly) is the original weight-loss support and wellness education organization.  Founded more than 63 years ago, TOPS is the only nonprofit, noncommercial weight-loss organization of its kind.  TOPS promotes successful weight management with a "Real People. Real Weight Loss." philosophy that combines support from others at weekly chapter meetings, healthy eating, regular exercise, and wellness information.  TOPS has about 170,000 members - male and female, age seven and older - in nearly 10,000 chapters throughout the United States and Canada.

Visitors are welcome to attend their first TOPS meeting free of charge.  Membership is affordable at just $26 per year, plus nominal chapter fees.  To find a local chapter, view www.tops.org or call (800) 932-8677.

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31 Oct 2011

NARI supports National Lead Poisoning Prevention Week (October 23-29, 2011)

By Morgan Zenner

Learn how your remodel can impact a child's health during National Lead Poisoning Prevention Week

Survey results reveal homeowner attitudes about lead hazards during a renovation

 

Des Plaines, Illinois, October 26, 2011?The National Association of the Remodeling Industry (NARI) is raising awareness of the dangers of lead exposure by observing National Lead Poisoning Prevention Week on October 23-29, 2011. The Environmental Protection Agency's Renovation, Repair and Painting (RRP) Rule requires certification and lead-safe work practices for any renovation, repair or painting projects in homes and child care facilities built before 1978. For more background on the EPA's RRP rule, please click here.

 

"Through awareness and education, NARI is hoping to motivate every remodeler and homeowner to abide by the RRP rule when renovating their homes for the safety of the vulnerable populations who could potentially be impacted by lead exposure," says NARI National President Michael Hydeck, MCR, CKBR, of Hydeck Design Build in Telford, Pa.

 

The RRP rule is designed to protect pregnant women and children under 6 from toxic lead exposure by requiring contractors to complete an eight-hour training course outlining lead-safe work practices that contain and minimize lead dust. Those who complete the course must supervise the renovation of pre-1978 homes, and the contracting firm must be a Certified Firm with the EPA. NARI is concerned that lack of awareness of RRP and additional costs to comply with this rule is actually putting this target audience at higher risk for lead exposure.

 

NARI's June 2011 consumer survey proved this, revealing an opposite effect from the rule's intended purpose based on consumer behaviors and buying habits for renovations in older homes. The survey, which used Meredith Corporation's Home Enthusiast Panel to gauge homeowner attitudes and knowledge of RRP, found 53 percent of respondents had not heard about this rule prior to the survey. Fifty-nine percent of homeowners responded they would do demolition work themselves in order to save money?an activity that can create significant lead hazards. Twenty-nine percent would likely hire a non-certified contractor to work on their home in order to save money. Click here to request a copy of the Consumer RRP survey from NARI.

 

"These results indicate that homeowners are largely unaware of the dangers of lead?so much so, that they are willing to put their families at risk in order to reduce remodeling costs," Hydeck says.

 

That was not the case with Dan and Michelle Neifert, homeowners from Boise, Idaho, whose 75-year-old home recently went through a complete renovation. "I knew that I had to find a lead certified renovator to work on my home because every contactor we talked to said we needed to test the home and that it was against the law not to," Dan Neifert says.

 

The RRP rule became even more important to the Neifert's after discovering they were expecting their first child. Though they did not live in the home while the gut-rehab took place, it was still important that lead-safe work practices and clean-up processes were implemented and followed to protect their child from lead exposure.

 

"We figured lead was in the home, and we wanted to have everything done correctly and safely for our new child, regardless of added costs and time," Dan Neifert says. They conducted lead testing before demolition to identify exactly which areas required lead-safe work practices.

 

Lead was found in the exterior and interior of the home. The exterior windows, tiles, stucco siding of the home and detached garage tested positive, and the interior bathroom tile floor, utility room ceiling and crawlspace access were positive as well. Since the remodeling project involved replacement of all windows, renovation of the main floor and conversion of a garage into living space, all work was done within RRP guidelines.

 

The Neiferts said that lead testing, labor and materials added cost to the project, and they say the demolition added an additional week to their project.

 

"The lead-safe work practices I witnessed from visiting the home was the worksite was surrounded by cautionary tape, the entire exterior of the home was covered in plastic, and those working inside wore respirators and suits," Dan Neifert says. He adds that because he was located in a historic district, he had to notify neighbors of his remodeling plans and inform them of the RRP renovation that was taking place.

 

NARI member Joe Levitch, CR, EPA Lead Certified Renovator and Lead Paint Inspector and Risk Assessor, of Boise, Idaho's Levco Builders completed the Neifert's renovation and lead testing. "It's a win-win for the homeowners to keep their families safe and have proof that their home is safe for anyone to live in for years to come."

 

NARI, along with week organizers Centers for Disease Control and Prevention (CDC), the EPA and the U.S. Department of Housing and Urban Development, are assisting in promotion of National Lead Poisoning Prevention Week, According to the CDC, childhood lead poisoning is considered the most preventable environmental disease among young children, yet an estimated 250,000 U.S. children have elevated blood-lead levels.

 

 

In honor of National Lead Poisoning Prevention Week (October 23-29, 2011), NARI is providing this checklist to minimize lead exposure for homeowners living in pre-1978 homes:

 

  • Verify that your contractor's firm is registered with the EPA unless your state has taken over with its own lead safety program, in which case the certification process may be slightly different. To find out if your state is working under its own lead program, visit http://www.epa.gov/lead/pubs/renovation.htm#authorized.
  • Verify at least one person is a Certified Renovator and has documented the training of the work crew and is supervising the work being completed in the home.
  • Know that these certifications must be accessible at the work site at all times.
  • Firms must post signs before renovation begins, clearly defining the work area and warning occupants and other persons not involved in renovation activities to remain outside of the work area.
  • Make sure you understand and sign the EPA's "Renovate Right" brochure.
  • Remove all belongings from the immediate area of the renovation.
  • Notice if your contractor is using plastic sheeting that is taped 6 feet beyond the perimeter of surfaces undergoing renovation; reusable cloth coverings are not acceptable.
  • Renovators should be cleaning up and mopping daily to minimize dust contamination.
  • Contractors must use HEPA vacuums and/or wet mopping to remove lead particles.
  • All contaminated materials should be placed in heavy duty plastic bags before your contractor disposes of them.

 

To learn more about testing your child's lead levels, testing your home for lead for lead or preventing health effects related to lead exposure visit http://www.cdc.gov/nceh/lead/nlppw.htm. To find a NARI remodeler in your area who is a Lead Certified Renovators, visit www.nariremodelers.com. For green remodeling information, please visit www.greenremodeling.org.

 

# # #


31 Oct 2011

Pay-for-Delay Deal making Continues between Brand Name and Generic Drug Companies

By Grassley Press
October, 25, 2011

Senate Judiciary Committee Ranking Member Chuck Grassley made the following statement after the Federal Trade Commission (FTC) released a staff report that found drug companies entered into 28 potential pay-for-delay deals between October 1, 2010 and September 30, 2011.

Grassley, along with Senator Herb Kohl of Wisconsin, is the author of legislation that would end these settlements between generic and brand name drug companies that keep more affordable generics off the market.  The senators also sent a letter to the Deficit Reduction Committee encouraging them to use their legislation as a cost-saving measure.   The Congressional Budget Office estimated that the Grassley-Kohl bill will save the federal government - which pays approximately one-third of all prescription costs - $2.68 billion over ten years.  The Federal Trade Commission estimates that ending these settlements would save consumers who pay for prescription drugs through private insurance or on their own $3.5 billion per year.   The Washington Post also editorialized about the issue today.

Here's Grassley's comment.

"The pay-for-delay tactics employed by brand name and generic drug companies only benefit those companies that engage in such settlements.  It hurts consumers who don't have access to affordable medications, and it hurts taxpayers who pay for prescription drugs in both Medicare and Medicaid.  The FTC's study shows a remarkable continuation of a practice that puts the interests of drug companies above the interests of consumers.  No one has to engage in such deal making at the expense of consumers, and it's time to put an end to it."

According to the FTC staff report, companies reached 156 final patent settlements in fiscal 2011, and 28 of those settlements contained a payment to a generic manufacturer which restricted the generic company's ability to market its product. The FTC went on to say that "Of those 28 settlements, 18 involved generics that were so-called 'first filers,' meaning that they were the first to seek FDA approval to market a generic version of the branded drug, and, at the time of the settlement, were eligible to exclusively market the generic product for period of time." The FTC press release explains that "Because of the regulatory framework, when first filers delay entering the market, other generic manufacturers can also be blocked from entering the market, which makes such patent settlement deals particularly harmful to consumers."

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25 Oct 2011

Braley Introduces Bill to Keep Doctors in Iowa

By Jeff Giertz

Bill would stop a scheduled end-of-year Medicare reimbursement cut to Iowa doctors

 

Washington, DC - Rep. Bruce Braley (IA-01) today introduced a bill to make sure Medicare reimbursement rates for physicians in Iowa and other rural states don't drop precipitously at the end of the year and endanger Iowans' access to doctors and high-quality medicine.

Legislation written by Braley and passed in 2010 ensures that doctors in Iowa and other rural states get paid by Medicare at rates closer to those of doctors in larger, more urban states.  The law is set to expire on December 31st, 2011.

Braley's Medicare Equity Extension Act, introduced today, extends the current reimbursement rates for an additional two years.  The legislation would help Iowa retain doctors and improve patient access to quality healthcare.

"It's funny math.  Medicare pays doctors based on geography, not quality of care," Braley said.  "Iowa doctors rank near the top in quality of care, but get penalized for their success since Medicare pays doctors more money in big states even if quality is lower.

 

"Doctors should have an incentive to provide good care.  Instead, there's an incentive to leave states like Iowa for bigger states with higher payment rates.

 

"The Medicare Equity Extension Act will stop Medicare from cutting payments to Iowa doctors, preventing a potential exodus of good physicians to other states and providing an incentive to doctors to provide the best care possible."

Medicare calculates reimbursements to physicians using two indexes that factor in the cost of doctors' labor and the cost of doctors' physical expenses like office space and equipment.  Because Medicare considers the cost of doing business in Iowa and other rural states to be low, this negatively impacts the amount doctors are reimbursed for their services.

Current law sets a floor on the indexes, and thus a floor on reimbursements, ensuring rural states' reimbursement rates more closely match large states'.  Those floors would expire on December 31st unless legislation is passed to extend them.  The Iowa Medical Society, among other groups, has urged an extension.

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