News in brief - June 15, 2009

Physicians worry health reform will increase their costs

While physicians and other health care professionals believe in the importance of health system reform, many are concerned about the financial impact some changes could have on their practices, according to a recent survey.

IVANS, an insurance and health care services vendor based in Stamford, Conn., found that 72% of surveyed health care entities believe a pay-for-performance model could lead to improved patient outcomes. Seventy-nine percent, however, said it would increase their costs of doing business, most likely due to increased reporting and record-keeping requirements. When it comes to implementing a national health insurance plan, 60% said the move would increase costs or have no affect at all.

In addition, more than half of health care entities said they believe the billions of dollars in the most recent federal economic stimulus package earmarked for health information technology will have little success in encouraging electronic health records adoption.

The survey drew more than 500 respondents, including physician practices, hospitals, clinics, home health care organizations, nursing homes and billing companies. IVANS released the results June 4.

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Bill to end generic drug delays clears House subcommittee

A House Energy and Commerce subcommittee on June 3 voted 16-10 along party lines to approve a bill that would prohibit brand-name drug firms from settling patent dispute cases by paying generic drugmakers to delay the marketing of generics, an arrangement sometimes called "pay-for-delay."

The measure, known as the Protecting Consumer Access to Generic Drugs Act, is sponsored by Rep. Bobby Rush (D, Ill.). "During a time when we are deliberating on universal health care and ways to cut down costs, this bill will save taxpayers and consumers billions of dollars from increased generic competition in the marketplace," said Rush, chair of the subcommittee that adopted the bill.

But Generic Pharmaceutical Assn. President and CEO Kathleen Jaeger said the bill could actually narrow access to generic drugs. "Limiting the parties' ability to settle patent disputes would discourage legitimate pro-consumer settlements that result in early market entry and would result in fewer patent challenges, which would lead to delayed market entry and a substantial loss of savings for consumers," she said.

American Medical Association policy supports the Federal Trade Commission in its efforts to end pay-for-delay arrangements. The House Judiciary Committee held a June 3 hearing on the issue.

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Florida tobacco tax increase to benefit state Medicaid program

Florida Gov. Charlie Crist on May 27 signed a $1 per-pack cigarette tax increase, bringing the state's tax to $1.34. The hike, effective July 1, is expected to raise about $850 million in its first year for the state's Medicaid program. The money would go toward physician services, long-term care, hospice services, prescriptions and prepaid health plans, among other areas, according to Tiffany Vause, spokeswoman for the Florida Agency for Health Care Administration. The agency runs the state's Medicaid program.

The Florida Medical Assn. supported the bill, as did the American Cancer Society. "This will reduce smoking and save lives," said Marty Larsen, board chair and president of the cancer society's Florida division.

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Nebraska governor approves abortion-related measure

Nebraska physicians will be required to perform ultrasounds on women seeking abortions under a new law signed May 29 by Gov. Dave Heineman.

The woman has the choice whether to view the image. At least 13 other states have similar abortion counseling laws with ultrasound requirements, according to the Guttmacher Institute, an abortion-rights policy group that tracks such legislation.

Anti-abortion groups supporting the Nebraska law said it was intended to ensure that women are fully informed before consenting to the procedure. Opponents fear the statute will violate patients' privacy rights.

The Nebraska Medical Assn. monitored the bill but did not take a position on it or the underlying abortion issue.

The print version of this content appeared in the June 22, 2009 issue of American Medical News.

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