Other Legislation 

Updated: 5/10/2012

• Reps. Schwartz and Heck Introduce SGR Repeal Bill
  On 5/9/12, Representative Schwartz (D-PA) and Representative Heck, DO (R-NV) introduced the Medicare Physician Payment Innovation Act of 2012, which would repeal Medicare's physician payment system and provide the transition to a new system.
  
  The bill would repeal the sustainable growth rate (SGR) formula, which dictates how much Medicare reimburses physicians; create positive incentives for undervalued primary, preventive, and coordinated care services; and would set up a five-year transition period, during which the Centers for Medicare & Medicaid Services would develop and test new payment models to replace the formula.  The cost of repeal — an estimated $316 billion over 10 years, according to the Congressional Budget Office — would be offset by using savings from the Overseas Contingency Operations funds.  In February, Congress passed a temporary fix, which will expire 1/1/13, and leave physicians facing a 32 percent cut in Medicare reimbursement.
  
  View the summary of the legislation 
  View AACOM’s letter of support to Reps. Schwartz and Heck 

• House Passes Republican Student Loan Bill, Fight Continues in Senate
  On 5/8/12, the U.S. Senate, by a vote of 52-45, rejected a cloture motion to proceed to debate on the Democrats’ student loan bill, S. 2343, introduced by Senator Harry Reid (D-NV), which fell short of the 60 votes needed to prevent a GOP filibuster.  The Democratic alternative bill’s offset would eliminate a tax break for S corporations - companies that pass their income, losses, deductions and credits through to shareholders for federal tax purposes.  While republicans agree with democrats on extending the current 3.4 percent interest rate for one year, they object to the Democrats’ proposed offset.  The GOP alternative, S. 2366, was introduced by Senator Lamar Alexander (R-TN) and proposes to eliminate the Prevention and Public Health Fund, created in the Affordable Care Act, as an offset.
  
  On 4/27/12, the U.S. House of Representatives passed its bill, H.R. 4628, the Interest Rate Reduction Act, by a vote of 215-195.  The measure was introduced by Representative Judy Biggert (R-IL) and would prevent government-subsidized student loan interest rates from increasing to 6.8 percent from 3.4 percent on 7/1/12. The measure offsets the hike in interest rates by eliminating the Prevention and Public Health Fund.  The prevention fund expands and sustains funding for prevention and public health programs.  These funds may be used for programs authorized by the Public Health Service Act for prevention, wellness, and public health activities, including prevention research and health screenings, such as the Community Transformation Grant Program, the Education and Outreach Campaign for Preventive Benefits, and immunization programs.  The White House has threatened a veto over how the bill would be financed.
  
  AACOM supports the Student Loan Affordability Act (S. 2051/H.R. 3826), which was introduced in January 2012, by Senator Jack Reed (D-RI) and Representative Joe Courtney (D-CT), which would amend the Higher Education Act of 1965 to extend the reduced interest rate for federal Direct Stafford Loans and would permanently cap Stafford Loan interest rates for low and moderate income students.
  
  On behalf of our nation’s osteopathic medical students and graduates, AACOM supports the efforts in Congress to stop the interest rate increase, which will take place on July 1, 2012 if Congress doesn't intervene; however, AACOM does not support legislative proposals that utilize the Prevention and Public Health Fund as an offset.

•  President Signs Law, Delays Physician Cut for Remainder of 2012
  On 2/22/12, President Obama signed into law the Middle Class Tax Relief & Job Creation Act of 2012 (PL 112-96), which extends the payroll tax break, continues unemployment insurance benefits, and is expected to add approximately $100 billion to the federal deficit.  The law delayed a scheduled March 1 cut to Medicare physician payments and delays this cut until January 1, 2013 where physicians will be facing a 32% cut.  The measure would reduce Medicare and Medicaid reimbursement for several provider groups to help pay for the Sustainable Growth Rate, as well as cuts spending in the Affordable Care Act (ACA) by $11.6 billion. Some of the measure’s offsets include $5 billion from the Prevention and Public Health Fund, created in the ACA, and other funding including reducing the amount of patient bad debt that Medicare providers, including hospitals and nursing homes, can recover from Medicare. 

• President Signs the Patent Reform into Law
  On 9/16/11, President Obama signed  into law the Leahy-Smith America Invents Act, also referred to as the patent reform bill (P.L.: 112-29), which changes the U.S. patent application system from one that awards patents to the first person to invent something, to a system that awards the first person to file a patent application on an invention.  The law allows a new review of patents and gives the U.S. Patent and Trademark Office more flexibility to set and spend fees paid for by inventors to get patents and businesses to register trademarks.