News in brief - Aug. 18, 2008

Senators propose center to compare treatment effectiveness

A public-private, nonprofit research institute to outline a national agenda for comparative effectiveness research would be created under a bill that Sens. Max Baucus (D, Mont.) and Kent Conrad (D, N.D.) introduced Aug. 1. The Comparative Effectiveness Research Act of 2008 would authorize the institute to contract with entities to develop methodologies and conduct studies comparing how well different medical treatments work. Research would be peer reviewed and shared with the public.

"Knowing more about the effect of different health interventions will improve the treatment of diseases, help Americans better manage and prevent illness, and could lower health care costs for everyone," Baucus said.

The institute's 21-member board would include the Dept. of Health and Human Services secretary, the directors of the Agency for Healthcare Research & Quality and National Institutes of Health, and 18 additional members representing physicians, patients, public health program administrators, health plans, health quality researchers and others.

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Calif. doctors get Medicaid setback

A California trial court refused to halt a 10% across-the-board cut in Medicaid payments to physicians and other health care professionals that took effect July 1.

A coalition of doctors, hospitals and other health care organizations -- led by the California Medical Assn. -- had sued the state in May to block the cuts, which Gov. Arnold Schwarzenegger approved in February. The coalition alleged that the reductions violated a federal law requiring Medicaid payments to be sufficient to ensure access to care.

While acknowledging that the more than $600 million in payment reductions will harm the availability of Medicaid services, a Los Angeles County Superior Court judge on July 29 ruled that the coalition did not have the right to sue under federal Medicaid law.

The coalition is considering its appeal options.

Doctors fear that the cuts will exacerbate existing access problems, as low reimbursement rates have forced many California physicians to close their doors to Medicaid patients.

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