1. First Year Enrollment at US Medical Schools is Rising
The AAMC 2012 enrollment report projects first-year medical school enrollment will reach 21,376 in 2016-17 -- a 29.6% increase from 2002-03. Through establishment of new programs and expansion of existing ones, the AAMC is working to mitigate a projected shortage of 90,000 primary care and subspecialty doctors by 2020.
However, the federal government froze financial support for residency training in 1997. Since then the demand for health care has increased more than expected due to the aging baby-boomer generation and the addition of over 32 million new people to the health care system via the Affordable Care Act.
The AAMC would like to see Medicare fund residency training above the 1997 cap, but instead both sides of the aisle in Congress are calling for a reduction in federal spending. SOURCE: http://www.aafp.org/online/en/home/publications/news/news-now/education-professional-development/20120522medschoolenrollment.html
2. "Closing the Doughnut Hole" provision in the Affordable Care Act (ACA) saves seniors billions
A provision in the Affordable Care Act (ACA) that closes the so-called doughnut hole in Medicare Part D has saved beneficiaries $3.4 billion on prescription drugs, according to the Centers for Medicare and Medicaid Services (CMS). In just the first 3 months of this year, 220,000 people on Medicare have saved an average of $837 because of a provision that aims to close the doughnut hole completely by 2020, CMS announced Monday. In total, more than five million people have saved money on their Medicare Part D drugs since the provision to close the doughnut hole first went into effect in 2010.
The doughnut hole refers to the gap in coverage that occurs when spending on prescription drugs reaches a certain dollar amount, at which point Medicare beneficiaries have to start paying the full costs of their prescriptions. After a certain limit, Medicare kicks back in and begins to cover the drugs costs again. In 2012, the coverage gap occurs between $2,930 and $4,700.
In 2010 The ACA provided a one-time $250 rebate for Medicare beneficiaries who hit the doughnut hole and in 2011 beneficiaries received a 50% discount on brand-name drugs and 7% coverage of generic drugs. In 2012, the coverage for generic drugs in the gap is 14%. Coverage will continue to increase until the doughnut hole is closed in 2020. SOURCE: http://www.medpagetoday.com/Washington-Watch/Reform/32441
3. Student Loan Bills Stall in Senate, Republican Leadership Proposes New Offsets
The Senate May 24 rejected two bills that would have would have averted a July 1 increase of undergraduate subsidized loan interest rates from 3.4 percent to 6.8 percent.
4. AAMC Submits Comments to Ways and Means Committee on SGR Replacement
The AAMC submitted a May 25 comment letter to the House Ways and Means Committee in response to the committee’s request for input from the physician community regarding how best to replace the sustainable growth rate (SGR) formula and move towards a Medicare physician payment model that incorporates value-based measures and practice arrangements that improve health outcomes and efficiency. Highlights from the letter include:
5. Health Care 101: What is the "Doughnut Hole"?
The Medicare Part D coverage gap — informally known as the Medicare doughnut hole — is the difference of the initial coverage limit and the catastrophic coverage threshold, as described in the Medicare Part D prescription drug program. After a Medicare beneficiary surpasses the prescription drug coverage limit they are financially responsible for the entire cost of prescription drugs until the expense reaches the catastrophic coverage threshold. For seniors the cost breakdown is as follows:
SOURCE: http://en.wikipedia.org/wiki/Medicare_Part_D_coverage_gap
Your loyal Legislative Affairs team,
Brad Hunter – Northeast Region
Robert Sanchez – Central Region
Sean Vanlandingham – Southern Region
Claire Sadler – Western Region
William Teeter – National Delegate
The AAMC 2012 enrollment report projects first-year medical school enrollment will reach 21,376 in 2016-17 -- a 29.6% increase from 2002-03. Through establishment of new programs and expansion of existing ones, the AAMC is working to mitigate a projected shortage of 90,000 primary care and subspecialty doctors by 2020.
However, the federal government froze financial support for residency training in 1997. Since then the demand for health care has increased more than expected due to the aging baby-boomer generation and the addition of over 32 million new people to the health care system via the Affordable Care Act.
The AAMC would like to see Medicare fund residency training above the 1997 cap, but instead both sides of the aisle in Congress are calling for a reduction in federal spending. SOURCE: http://www.aafp.org/online/en/home/publications/news/news-now/education-professional-development/20120522medschoolenrollment.html
2. "Closing the Doughnut Hole" provision in the Affordable Care Act (ACA) saves seniors billions
A provision in the Affordable Care Act (ACA) that closes the so-called doughnut hole in Medicare Part D has saved beneficiaries $3.4 billion on prescription drugs, according to the Centers for Medicare and Medicaid Services (CMS). In just the first 3 months of this year, 220,000 people on Medicare have saved an average of $837 because of a provision that aims to close the doughnut hole completely by 2020, CMS announced Monday. In total, more than five million people have saved money on their Medicare Part D drugs since the provision to close the doughnut hole first went into effect in 2010.
The doughnut hole refers to the gap in coverage that occurs when spending on prescription drugs reaches a certain dollar amount, at which point Medicare beneficiaries have to start paying the full costs of their prescriptions. After a certain limit, Medicare kicks back in and begins to cover the drugs costs again. In 2012, the coverage gap occurs between $2,930 and $4,700.
In 2010 The ACA provided a one-time $250 rebate for Medicare beneficiaries who hit the doughnut hole and in 2011 beneficiaries received a 50% discount on brand-name drugs and 7% coverage of generic drugs. In 2012, the coverage for generic drugs in the gap is 14%. Coverage will continue to increase until the doughnut hole is closed in 2020. SOURCE: http://www.medpagetoday.com/Washington-Watch/Reform/32441
3. Student Loan Bills Stall in Senate, Republican Leadership Proposes New Offsets
The Senate May 24 rejected two bills that would have would have averted a July 1 increase of undergraduate subsidized loan interest rates from 3.4 percent to 6.8 percent.
- The Democratic Senate bill (H.R. 4628) offsets the cost of the extension by raising taxes on so-called “S” corporations
- The Republican House proposal (S.2343) would have repealed the Prevention and Public Health Fund established under the Affordable Care Act (ACA, P.L., 111-148 and P.L. 111-152).
4. AAMC Submits Comments to Ways and Means Committee on SGR Replacement
The AAMC submitted a May 25 comment letter to the House Ways and Means Committee in response to the committee’s request for input from the physician community regarding how best to replace the sustainable growth rate (SGR) formula and move towards a Medicare physician payment model that incorporates value-based measures and practice arrangements that improve health outcomes and efficiency. Highlights from the letter include:
- Emphasis that ACO, Medicare Shared Savings Programs and Bundled payments are in their infancy and should be given time to develop before being evaluated
- Expressed goal of creating a payment system based on services, complexity of patient and geographic area that also accounts for increased costs due to inflation
- Concern about the CMS pay-for-performance model that deviates from private payer's "upside only model" and could potentially impose a financial penalty despite improved relative performance
5. Health Care 101: What is the "Doughnut Hole"?
The Medicare Part D coverage gap — informally known as the Medicare doughnut hole — is the difference of the initial coverage limit and the catastrophic coverage threshold, as described in the Medicare Part D prescription drug program. After a Medicare beneficiary surpasses the prescription drug coverage limit they are financially responsible for the entire cost of prescription drugs until the expense reaches the catastrophic coverage threshold. For seniors the cost breakdown is as follows:
- First $295 in drug costs is out of pocket (deductible)
- Medicare pays 75% of drug costs from $295 - $2700
- Anything over $2700 up to $6154 is not covered and paid out of pocket --> The "Doughnut Hole"
- After $6154 of drug expense, Medicare will pay 95% of any additional drug cost
SOURCE: http://en.wikipedia.org/wiki/Medicare_Part_D_coverage_gap
Your loyal Legislative Affairs team,
Brad Hunter – Northeast Region
Robert Sanchez – Central Region
Sean Vanlandingham – Southern Region
Claire Sadler – Western Region
William Teeter – National Delegate