Finance Leaders Release GAO Report Indicating Better Guidelines for Budget Planning Are Needed

Washington, DC - Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Chuck Grassley (R-Iowa) today called for new guidelines to be set for Medicare Quality Improvement Organizations (QIOs) so the Centers for Medicare and Medicaid Services (CMS) can ensure QIO funds are spent properly.  QIOs are organizations within each state contracted by Medicare to, among other things, determine the quality of services delivered to Medicare beneficiaries through quality-of-care reviews.  Baucus and Grassley called for improved budget planning today after releasing a Government Accountability Office (GAO) report which indicated that the methods QIOs use to determine and report the total costs of quality-of-care reviews currently vary among states.  The GAO found that clearer and more specific guidelines for the budget-writing process would better ensure that Medicare dollars are being well-used to improve quality of care for seniors.

"This report demonstrates the need for a sound budget development plan that guarantees that not one dollar of the Medicare Trust Fund goes to waste," said Baucus. "Reviewing the quality of care of health care providers plays a critical role in ensuring that seniors are treated fairly and have access to high quality care.  The money we spend to ensure quality health care should make people healthier and effective budget guidelines from Medicare will certainly contribute to making sure we meet that goal."

 

"There isn't a good system for the QIOs to keep track of what they find, meaning the value of their work cannot be determined," Grassley said. "It might be that CMS is overpaying for these services.  CMS has to do a better job of tracking this work so it can pay the appropriate amount and so taxpayers get what they're paying for, which is better quality of care for Medicare beneficiaries.  Improving its oversight of Medicare contractors is something CMS needs to accomplish, and it's one of my long-time priorities."

Currently, QIOs inform CMS of the total cost of quality-of-care reviews conducted and calculate labor costs therein, but do not follow a standard set of guidelines on how to calculate or provide that information.  As a result, QIOs' reporting systems vary among states, and CMS is unable to guarantee that its three-year QIO budget is appropriate. GAO recommended that CMS create clear instructions specifying how QIOs should detail the volume and costs of their quality-of-care reviews.  Such a standard would allow CMS to develop accurate budgets for quality-of-care reviews.

CMS enters into three-year contracts with QIOs in every state to perform various reviews to help guarantee Medicare dollars are spent wisely and health care providers in each state are maintaining a high standard of care.  Quality-of-care reviews, just one of the reviews QIOs perform, gauge certain measures like the standard of treatment patients receive and Medicare providers' adherence to their patients' medication schedules.  CMS creates a budget to cover the total cost of reviews at each QIO.  The current amount budgeted for all reviews, including quality-of-care reviews, for QIOs in every state is approximately $208 million for the three-year period between 2008 through 2011.

The full text of the GAO report is available at http://www.gao.gov/new.items/d11116r.pdf.

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MILWAUKEE, WI - As shouts of "Happy New Year!" ring out around the world in the earliest moments of 2011, many people also will be making resolutions for something better in the New Year.

While some fall short of accomplishing their January 1 promise, setting smaller, more definite goals is one way to achieve success. TOPS Club, Inc. (Take Off Pounds Sensibly), the nonprofit weight-loss support organization, shares the following tips for realistically planning - and achieving - one's resolutions:

1.    Be specific
Determine an exact goal. Instead of resolving to lose weight, consider a specific amount or goal weight and time frame, such as losing 20 pounds by the Fourth of July and 20 more pounds by Thanksgiving. No matter what the resolution, setting small goals will be easier to achieve one step at a time.

2.    Make a plan for success
Construct a "road map" as a guide to achieve your goal.  Consider what it will take to accomplish the plan. For example, to lose weight, healthy eating, exercise, and joining a support group like TOPS is paramount. Consider keeping a journal to keep track of progress ups and downs.

3.    Review the plan along the way
Once a week, take time and evaluate progress. Review the journal and determine if the goals need revamping or ramping up. Everyone makes mistakes. When that happens, avoid falling into the traps of shame and guilt.

4.    Keep resolutions realistic
Be realistic in goal setting. If completely eliminating a behavior is too difficult, consider resolving to do it less often. 

5.    Make it personally meaningful
A resolution should be something an individual desires to change or achieve and should not be dictated by family members or what society says is good for you.   Resolutions without strong, personal motivation can be doomed to fail.

6.    Tell others about the resolution
Sharing goals with friends and family can be an outstanding support mechanism and a source of gentle nudging if a detour from the plan takes place.

TOPS Club Inc. (Take Off Pounds Sensibly), the original, nonprofit weight-loss support and wellness education organization, was established more than 62 years ago to champion weight-loss support and success.  Founded and headquartered in Milwaukee, Wisconsin, TOPS promotes successful, affordable weight management with a philosophy that combines healthy eating, regular exercise, wellness information, and support from others at weekly chapter meetings. TOPS has about 170,000 members in nearly 10,000 chapters throughout the United States and Canada.

Visitors are welcome to attend their first TOPS meeting free of charge. To find a local chapter, view www.tops.org or call (800) 932-8677.

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Johnston, IA (December 16, 2010) - The Delta Dental of Iowa Foundation awarded $144,765 to 25 Iowa agencies to improve the oral health of Iowans through its mini-grant program.

The Foundation awards mini-grants twice a year in May and October.  Mini-grants are intended to support one-time oral health projects, such as workshops or conferences, or short-term projects of up to one-year in duration, such as a survey, data collection or research study. These grants are also used to stimulate long-term oral health projects and may be combined with funds from other sources.

"The Delta Dental of Iowa Foundation's mission is to support and improve the oral health of Iowans," said Donn Hutchins, president of the Delta Dental of Iowa Foundation.  "The mini-grant program is a great example of how the Foundation can support a variety of oral health projects throughout the state that make a measurable difference in the oral health of Iowans."

The agencies being awarded mini-grants by the Delta Dental of Iowa Foundation in 2010 include :

  • Davenport, Edgerton Women's Health Center - $3,000 for "Start Them Young," oral health care for infants and toddlers.
  • Quad Cities, Bethany for Children & Families - $9,000 for "Give Kids a Smile" dental program.
  • Clinton & Jackson Counties, Visiting Nurse Services of Iowa - $3,000 for I-SmileTM oral health project.
  • Creston, Matura Action Corporation - $5,000 for sealant program equipment.
  • Council Bluffs, Iowa Western Community College - $10,000 for "Smiling through Prevention" program.
  • Des Moines, AIDS Project of Central Iowa - $5,500 for the "Living with HIV: Oral Care Case Management" program.
  • Des Moines, Children and Families of Iowa - $6,000 for methamphetamine oral health education.
  • Des Moines, Drake University Head Start - $3,000 for "Healthy Head Start Smiles" program.
  • Des Moines, Mercy Foundation - $1,000 for "Keeping Smiles Bright" program.
  • Des Moines, Visiting Nurse Services of Iowa - $4,000 for oral health supplies for I-SmileTM "Summer Splash" and "Give Kids a Smile Day 2011" programs.
  • Dubuque, Crescent Community Health Center - $3,000 for "Miles of Smiles" program.
  • Forest City, Winnebago County Public Health - $500 for dental education and prevention program.
  • Fort Dodge, Iowa Central Community College - $6,200 for preventive oral health projects.
  • Glenwood, Mills County Public Health - $3,000 for "In the Family Way" program.
  • Hiawatha, Hawkeye Area Community Action Program of Linn County - $1,500 for Head Start oral health project.
  • Iowa City, Iowa Student Dental Association and Hispanic Dental Association - $6,000 to create pediatric educational oral health resource materials in Spanish.
  • Iowa City, University of Iowa College of Dentistry - $3,500 for "Oh, Give Me a Home..." project, $6,500 for CDC's CVD/Oral Health/Tobacco cessation initiative, $10,000 for Special Health Care Needs dental flip chart project, and $3,729 for Pediatric Dentistry Residency program.
  • Statewide, Iowa Department of Public Health - $9,900 for I-Smile™ outreach to low-income, pregnant women.
  • Statewide, Iowa Dental Association - $10,000 for the 2010 Annual Conference Guest Lecture Series.
  • Statewide, Iowa Dental Hygienist's Association - $3,000 for Iowa Dental Hygienist's Association annual session.
  • Marshalltown, Mid-Iowa Community Action, Inc. - $6,291 for maternal and child health dental program.
  • Mason City, Mercy Medical Center North Iowa - $10,000 for North Iowa Dental Clinic for the uninsured and underinsured.
  • Mason City, North Iowa Community Action Organization - $1,500 for Family Health Center - oral health prevention and education.
  • Ottumwa, River Hills Community Health Center - $9,645 for Ottumwa and Keokuk County Schools sealant and fluoride varnish program.
  • Ottumwa, Iowa Rural Health Education Partnership (IRHEP) and South Central Area Health Education Center (SC Iowa AHEC) - $1,000 for "Power of Sour" program.

Delta Dental of Iowa is the largest and most experienced provider of dental benefits in the state. As a not-for-profit, Delta Dental of Iowa invests in oral health projects through the Delta Dental of Iowa Foundation that focus on access to care, prevention, education and research. The Iowa company is a member of the Delta Dental Plans Association, a national organization of not-for-profit Delta Dental plans. The national association is the largest dental benefits carrier in the nation providing coverage to 54 million people in more than 93,600 employer groups.

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By Senator Tom Harkin

With Christmas and holiday celebrations just around the corner, it can be easy to forget that our country is currently fighting two food-related epidemics.  We have rising rates of diet-related chronic disease, such as diabetes, heart disease and cancer, while at the same time many families cannot afford to provide their children with consistent, healthy meals.  But recently enacted legislation will provide new tools in each of these fights.  Congress recently passed, and the President signed into law, the Healthy, Hunger-Free Kids Act.  This bill will go a long way in ensuring that not only do our kids have enough to eat, but that they receive food that points them toward a healthier, brighter future.

This fiscally responsible and bipartisan Healthy, Hunger-Free Kids Act reauthorizes the nation's major Federal child nutrition programs administered by the U.S. Department of Agriculture (USDA).  These are programs like the National School Lunch and Breakfast Programs that help ensure kids from all economic backgrounds are not denied access to nutritious and fulfilling meals.  And to address the growing number of underserved kids, the bill provides $4.5 billion in additional funding over the next 10 years - nearly ten times the amount of money provided for the previous child nutrition reauthorization, and the largest new investment in child nutrition programs since their inception.

In addition to helping feed our children, one of the major provisions of the bill - and one I have worked on for over a decade - will put into place common-sense nutrition standards for the foods and beverages sold in schools.  We all love delicious snacks and treats at home during the holiday season, but when kids are at school this bill will help make the healthy choice, the easy choice.  This is to help support the efforts of parents who work hard to feed their kids nutritious meals and who do not want these efforts undermined when their kids go to school.  In fact, we know that it's the choice that parents around the country prefer - survey after survey shows that parents support school nutrition standards at school that reinforce the healthy choices that parents try to make for their kids at home.

While there is more that we must do to fight childhood obesity, and at the same time ensure that no American child is going to bed hungry, this bill certainly takes important steps in the right direction and I will continue to fight in Washington towards these goals.  And while there is much to be done, as we all sit down for our holiday meals, may we not forget all the many blessings we do have here in Iowa and in America.  From my family to yours- happy holidays.

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A PDF version of the column is available by clicking here.

REID, MCCONNELL, BAUCUS, GRASSLEY HAIL SENATE PASSAGE OF BILL TO ENSURE SENIORS, MILITARY FAMILIES CONTINUE ACCESS TO HIGH-QUALITY DOCTORS

Senate Leaders' Bill Would Fix Medicare Physician Payment Formula to Ensure Doctors Can Continue Seeing Medicare, Tricare Patients

Washington, DC - Senate Majority Leader Harry Reid (D-Nev.), Minority Leader Mitch McConnell (R-Ky.), Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Chuck Grassley (R-Iowa) today applauded Senate passage of legislation extending through 2011 a fix to the Medicare physician payment formula to ensure seniors and military families can be confident they will be able to continue seeing their doctors.  The legislation would ensure Medicare and Tricare, the health care program for active-duty service members, National Guard and Reserve members, retirees and their families, will continue to pay physicians who participate in those programs at current levels.

"This bipartisan agreement gives peace of mind to seniors and military families in Nevada and across the nation," said Senator Reid. "We ensured that our seniors and veterans can continue seeing their doctors and getting the treatment they need.  I appreciate the leadership of Chairman Baucus and Ranking Member Grassley for leading the effort to work across the aisle and reach this common-sense solution."

"I'm encouraged that we were able to work together in a bipartisan way and protect access to care for America's 45 million Medicare beneficiaries in a fiscally responsible manner," said Senator McConnell. "This bipartisan accomplishment will help ensure that Kentucky's seniors and military personnel and their families won't be denied access to their doctors as a result of inaction in Washington. I'm pleased that the White House is supportive and I hope our colleagues in the House will take up this measure and pass it promptly. "

"We worked together on this longer-term solution to give seniors and military families in Montana and across the country the peace of mind of knowing they still will be able to see their doctors and get the medicine they need," said Senator Baucus. "This bill provides the security patients deserve and the certainty doctors need, ensuring seniors and military families have access to the doctors they know and trust."

"With a double-digit payment cut, some doctors would stop seeing Medicare and Tricare patients," Senator Grassley said. "This bipartisan legislation will help to ensure that older Americans and military families can continue to get quality health care."

The bill, the Medicare and Medicaid Extenders Act of 2010, would avoid a 25-percent cut to Medicare physician payments under the Sustainable Growth Rate (SGR) formula that would otherwise go into effect on January 1, 2011.  The proposal also includes extensions of other expiring health care provisions, including protections for rural hospitals and doctors, Transitional Medical Assistance and the Special Diabetes Program.  The legislation would be paid for by modifying the policy regarding overpayments of the health care affordability tax credit.  This policy does not change the tax credits for which people are eligible based on their income.  Instead, the proposal would change the way people pay back overpayments when they have received more credit than they are eligible for because, for example, they earned more money than expected in a given year.

Under current law there is a flat cap of $250 for individuals and $400 for families on the amount of the health care affordability tax credit people are required to pay back when they received an overpayment.  This payback cap is the same for people earning 160 percent of the federal poverty level and 360 percent of the federal poverty level.  Under this proposal for correcting overpayments, the cap on the payback amount would be on a sliding scale based on the income of the recipient of the tax credit, making the policy fairer to both recipients and all taxpayers.

The Finance Committee has jurisdiction over the Medicare program and the physician payment formula, which also sets payment levels for the Tricare program.  A summary and legislative text of the Medicare and Medicaid Extenders Act of 2010 can be found on the Finance Committee website http://finance.senate.gov/legislation/.  The legislation must now be passed by the House and signed into law by the President.

 

 

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Some have suggested piecemeal repeal of the most obnoxious features of the Affordable Care Act (ACA). The risk of this approach is comparable to that in cancer surgery: you might not get it all. In 906 pages of arcane statutory language, a lot can be hidden.

I suggest instead that we wipe the slate clean with a total repeal, and then consider reenacting any features that most agree are good. This would be the most efficient method because the list of items is shorter. Much shorter.

The most popular part is probably the elimination of "pre-existings." You can't eliminate the uninsurable condition of course, only the insurance company's ability to deny coverage to people who have it. How would such an isolated law work?

In a free market, coverage for people with pre-existings might well be available, without any law?if insurers could simply charge a premium reflecting their risk, or limit the potential pay-out. The premium, naturally, could be very high. That would be a strong incentive to buy insurance when young and healthy, and resist temptations to spend the premium money on iPods and new cars instead. But for many it is already too late.

The U.S. already has the equivalent of fire insurance for those whose house is burning down. It is called Medicaid. Roll into the emergency room desperately ill, and the hospital will treat you, and probably enroll you in Medicaid?likely after you have spent through any assets and lost your SUV and your home.

To prevent such personal tragedies, how about a law that simply said: "Insurance companies must take all comers, without price discrimination for pre-existing conditions." This is called "guaranteed issue" and "community rating" (GI/CR).

GI/CR would work well, if insurance were a magical money multiplier (MMM): put $100 in the slot machine, pull the lever, and watch $6 million in medical services pour out. The problem is that if a lot of healthy people who don't expect to need medical services decline to feed in their premiums, knowing they can always do so as soon as they get sick, premiums will have to escalate rapidly. This is called adverse selection (only sick people sign up), or the death spiral. It has happened every time GI/CR has been tried.

This popular part of ACA is impossible without the hated and unconstitutional individual and employer mandates.

What about doing away with limits on lifetime coverage? Limiting out-of-pocket expenditures? Doing away with copayments? All of these have the same problem: lack of an MMM, such as a money tree or the Philosopher's Stone that turns base metal into gold. The more we require insurance to pay out, the more money has to be poured in, with the inevitable loss to administrative overhead.

How about "giving doctors incentives to be more efficient"? In a free market, that is called the profit motive. In the ACA, the "incentives" are sticks painted to look like carrots, involving vast new reporting systems, with payments funneled through managed-care mechanisms. The choice is freedom?or ACA bureaucracies. Which of the some 159 new bureaucracies do we want to keep?

What about "affordability" provisions? Since prices are going up, in ACA "affordable" means forcing someone else to pay. It's a matter of redistributing money from those who earn more than 400% of the federal poverty level (around $88,000) to those who earn less. Americans are divided into winners and losers, guaranteeing constant fights over one's share of a shrinking pie.

One part everyone might favor is the one about allowing people to keep their insurance plan and their doctor if they like them.

Oh, that's not in the bill. That was just a Presidential promise. The ACA has rules for "grandfathering" some plans?a good term since they are not expected to have a long life expectancy. ACA also appears to be designed to drive independent doctors out of practice, and it virtually outlaws new doctor-owned hospitals.

If we continue to scour through the ACA looking for isolated good points that will make things better or less costly, rather than worse and more expensive, I predict that our thought experiment will lead to what in mathematics is called the "null set."

So far I have found no such provisions, zero. Nought, nada, nichts, zilch.

http://www.aapsonline.org/

Davenport, Iowa - Mississippi Valley Regional Blood Center will begin welcoming blood donors to its new Donor Center in Moline with a ribbon-cutting ceremony scheduled for 12:30 p.m. on Monday, November 15. The new Donor Center is located at 3600 16th Street in Moline (at the southeast corner of 16th St. and 36th Ave.). Blood donors will join MVRBC staff and officials from the Quad Cities Chamber of Commerce in officially opening the site.

Previously, the Blood Center operated Donor Centers that were located about four miles apart along Hwy. 5 (John Deere Road / Blackhawk Road) Moline and Rock Island. The new site is located about halfway between those locations, which are now closed. "Our new site has more space, more donor beds and more appointment slots," said Kirby Winn, Director of Public Relations. "It all adds up to more opportunities for blood donors to help patients at local hospitals."

Donors may schedule appointments by contacting MVRBC at (563) 359-5401 or online at www.bloodcenter.org. Hours of operation at the new location are:

Mondays & Thursdays: 10:30 a.m.-7 p.m.

Tuesdays & Wednesdays: 7 a.m.-7 p.m.

Fridays & Saturdays: 7-11:30 a.m.

The community is invited to attend an Open House at the new location from 8:30 - 11 a.m. on Saturday, December 4. Coffee, hot chocolate and bagels will be provided during the Open House, which will give current and prospective blood donors an opportunity to tour the location and learn about blood donation and the Blood Center's role in the community.

MVRBC is the provider of blood and blood components used for transfusion at all Quad City Area Hospitals. Working together with volunteer donors, MVRBC provides more than 25,000 units of blood and components each year to Genesis Medical Center hospitals in Davenport, DeWitt and Silvis; Hammond-Henry Hospital in Geneseo; Mercy Medical Center in Clinton; Select Specialty Hospital in Davenport and Trinity Regional Health System hospitals in Bettendorf, Moline, Muscatine and Rock Island. From its headquarters in Davenport, MVRBC serves a total of 75 hospitals in Illinois, Iowa, Missouri and Wisconsin. For additional information, see www.bloodcenter.org.

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WASHINGTON -- Sen. Chuck Grassley and Sen. Herb Kohl are asking the federal government to move forward in implementing new physician payment sunshine provisions.  The senators said some drug and medical device makers are preparing to meet the new requirements but in the absence of clear guidance from the federal government, are preparing payment data in non-uniform ways, causing the material to be difficult for the public to use.

Kohl is chairman of the Senate Special Committee on Aging and Grassley is ranking member of the Senate Committee on Finance.  They sponsored the Physician Payment Sunshine Act, which became law as part of the health care overhaul enacted this year.  The new provisions require drug and medical device manufacturers to disclose to the Department of Health and Human Services anything of value given to physicians, such as payments, gifts, honoraria or travel above certain minimum thresholds.  The goal is to inform consumers in case they want to consider the role such payments or gifts play in the provision of medical care.  The senators said the information will be collected in 2012 but some companies are preparing now, and greater guidance from the agency would help the utility of the information for the public.

The text of the senators' letter is available here.

Friday, November 05, 2010

Sen. Chuck Grassley, ranking member of the Finance Committee, with jurisdiction over key federal health care programs, made the following comment on a news report that health care costs will go up for AARP employees.

"AARP supported a partisan health care overhaul that cut Medicare by almost $500 billion. That will result in less choice, fewer benefits and decreased access to care for millions of its members. But now we hear that AARP's members aren't the only ones who will bear the brunt of the new health care law. Like companies across the country, AARP is shifting more costs onto employees in reaction to the health care overhaul. Despite their employer's support, AARP employees are learning that the health care law is not going to address the top priority of making health care coverage less expensive.  Supporters of the law tend to have tunnel vision and focus on how it will affect narrow groups of people, rather than recognizing that most people will just end up paying more.  But the big picture is clear.  Employers and employees nationwide will pay more for health care because of the new law."

A news article from the Associated Press follows.

Citing health overhaul, AARP hikes employee costs

By RICARDO ALONSO-ZALDIVAR, Associated Press Ricardo Alonso-zaldivar, Associated Press 2 hrs 52 mins ago

WASHINGTON - AARP's endorsement helped secure passage of President Barack Obama's health care overhaul. Now the seniors' lobby is telling its employees their insurance costs will rise partly as a result of the law.

In an e-mail to employees, AARP says health care premiums will increase by 8 percent to 13 percent next year because of rapidly rising medical costs.

And AARP adds that it's changing copayments and deductibles to avoid a 40 percent tax on high-cost health plans that takes effect in 2018 under the law. Aerospace giant Boeing also has cited the tax in asking its workers to pay more. Shifting costs to employees lowers the value of a health care plan and acts like an escape hatch from the tax.

"Most plan co-pays and deductibles have been modified," Jennifer Hodges, AARP's director of compensation and benefits, wrote employees in an Oct. 25 e-mail. "Plan value changes were necessary not only from a cost management standpoint but also to ensure that AARP's plans fall below the threshold for high-cost group plans under health care reform."

AARP officials said medical inflation is the main reason employee costs will be going up. The health care law is "a small part," said David Certner, legislative affairs director.

Although the tax on so-called "Cadillac" health care plans doesn't take effect for years, employers are already beginning to assess their potential exposure because it is hefty: at 40 percent of the value above $10,200 for individual coverage and $27,500 for a family plan. The tax is intended as a savings measure, to prod employers and workers into more cost-efficient plans.

Certner said AARP's plans are currently under the threshold for the tax. "We intend to stay below those thresholds," he said. "It's not in anybody's interest to move above those thresholds, not the employees' nor the employer's."

AARP officials say the organization's public policy recommendations are made independently of other considerations, including its range of business ventures, from travel, to insurance, to publishing.

The 40 million-strong AARP represents people 50 and older, including retirees on Medicare and Social Security. Its endorsement of health care overhaul came at a critical time last year, days before a close vote on the House floor.

"The impact on AARP employees is not a factor at all in our policy making, which is directed at the impact on our membership and on all older Americans," said Certner.

About 4,500 people are covered by AARP's plans, including employees, dependents and retirees.

"We supported the (health care) package because it contained incredibly important protections for our younger members, who often have problems getting access to care," said spokesman Jim Dau. "And because it helps our older members in Medicare with important new benefits."

Starting in 2014, the overhaul law prohibits insurance companies from turning down people with medical problems, and limits what they can charge older customers. It gradually closes the coverage gap in the Medicare prescription benefit, and improves coverage for preventive care.

The Obama administration says changes required by the law so far have only had a minimal, single-digit impact on premiums. Many benefits experts agree with that assessment but point out that the increases come on top of untamed health care inflation.

AARP warned its employees that more cost-shifting could be in store. "AARP intends to make similar changes, as necessary, in the future to avoid the (health plan) tax," said Hodges' e-mail.

Current forecasts are that the overhaul will only have a small impact on job-based coverage, slightly reducing the number of people who would otherwise be covered by employer plans. Those workers would have access to taxpayer-subsidized coverage through new insurance markets.

 

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WASHINGTON, D.C. - November 4, 2010 - Senator Tom Harkin (D-IA) today announced that $1,771,228.41 will be coming to Iowa in tax credits and grants to promote biomedical research.  The funds will help small biotechnology companies to produce new and cost-saving therapies, support good jobs and increase U.S. competitiveness.  The funds are provided under the new therapeutic discovery project program and are administered by the U.S. Department of Health and Human Services (HHS).  The program was created under The Affordable Care Act, the historic health reform law.  As Chairman of the Senate Health, Education, Labor and Pensions (HELP) Committee, Harkin played a pivotal role in the Senate passage of that law.

"Iowa's biotechnology companies are helping to lead the way in new research that will one day improve and save lives," said Harkin.  "With these funds, we not only support the search for medical cures, which will one day help lower health care costs, we are also keeping Iowa competitive in the global biomedical industry and creating good jobs in our state.  This is truly a double win for Iowa."

According to HHS, the therapeutic discovery project program is targeted to projects that show significant potential to produce new therapies, address unmet medical needs, reduce the long-term growth of health care costs, or advance the goal of curing cancer within the next 30 years.  The allocation of the credit also reflects projects that show the greatest potential to create and sustain high-quality, high-paying jobs in the United States and to advance our competitiveness in the fields of life, biological, and medical sciences.  Today, the biotechnology industry employs 1.3 million workers, and the industry continues to be a key growth engine for our economy.  The credit covers up to 50 percent of the cost of qualifying biomedical research and is only available to firms with fewer than 250 employees.  To provide an immediate boost to U.S. biomedical research and the small businesses that conduct it, the credit is effective for investments made in 2009 and 2010.  Firms could opt to receive a grant instead of a tax credit, so start-ups that are not yet profitable can benefit as well.

Details of the Iowa projects can be found here.

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