News in brief - Jan. 17, 2011

FDA requires review of new tobacco products

Tobacco products that entered the market or were changed after Feb. 15, 2007, must be evaluated by the Food and Drug Administration or risk being pulled from the shelves.

The new federal regulation, announced Jan. 5, requires manufacturers of tobacco products to prove that their products are "substantially equivalent" to those available before the February cut-off date to continue marketing them. "Substantially equivalent," according to the FDA, refers to products of the same ingredients, design, composition and heating source to existing products. The products may have different characteristics but must not raise any "different questions of public health" beyond their older counterparts.

Manufacturers of products introduced or altered after the 2007 cut-off date -- including cigarettes, roll-your-own tobacco and all smokeless products -- must apply for "equivalency" with the FDA by March 22. The agency also asks that tobacco companies planning to introduce products after the March date submit an application and obtain a marketing order form before proceeding.

The recent regulation stems from the Tobacco Control Act, which became law in 2009 and grants the FDA regulatory authority over tobacco products.

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Louisiana physician to chair House oversight panel

Rep. Charles Boustany, MD (R, La.), on Jan. 7 was named chair of the House Ways and Means oversight subcommittee. Dr. Boustany, first elected to Congress in November 2008, had been the highest-ranking Republican on the subcommittee during the previous Congress.

The Ways and Means Committee has jurisdiction over federal taxes, Medicare, Social Security, welfare and other issues. Dr. Boustany, like many of his GOP colleagues, promised to increase oversight of the national health system reform law. "I plan to hold [Internal Revenue Service] officials accountable to the taxpayers and press them on how this law will be implemented," he said.

Dr. Boustany said he plans to work with the Government Accountability Office to identify programs that could be improved to save taxpayer dollars.

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Hospital pay-for-performance proposal issued by CMS

The Centers for Medicare & Medicaid Services issued a proposed rule Jan. 7 to establish a Medicare value-based purchasing program for hospitals that would reward facilities for providing high-quality care to patients.

Under the program, hospitals that perform well on quality measures based on both clinical care and patient experiences would receive higher payments. Payments would be applied beginning in fiscal 2013 to payments for discharges occurring on or after Oct. 1, 2012. The program, required by the health system reform law, would apply to Medicare payments under the Inpatient Prospective Payment System for inpatient stays at more than 3,000 acute care hospitals.

The financial incentives would be funded by a reduction in the base operating diagnosis-related group payments for each discharge. The reduction would be 1% in fiscal 2013, rising to 2% by fiscal 2017. CMS is accepting comments on the proposed rule until March 8.

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Power to change Medicaid eligibility sought by GOP governors

Thirty-three Republican governors sent a letter on Jan. 7 to President Obama as well as House and Senate leaders asking for the ability to change state Medicaid eligibility.

Medicaid maintenance-of-effort requirements in the national health reform law prevent states from reducing eligibility below levels that existed when the law was enacted on March 23, 2010. However, states can request changes to their Medicaid programs using Dept. of Health and Human Services waivers, although such waivers can require several months to process.

The governors said the Medicaid maintenance requirements are forcing states into difficult financial decisions because they mandate billions in Medicaid spending. States have enacted large budget cuts, but many still face multibillion-dollar deficits in fiscal 2012, which begins on July 1 in most states.

"The effect of the federal requirements is unconscionable; the federal requirements force governors to cut other critical state programs, such as education, in order to fund a 'one-size-fits-all' approach to Medicaid," the governors' letter states.

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HHS, HUD to provide health and rental assistance

Two federal agencies have joined forces to provide a combination of health care, rental assistance and other support to enable nonelderly Americans with disabilities to leave nursing homes and live independently.

The Depts. of Health and Human Services and Housing and Urban Development announced Jan. 6 that $7.5 million in rental assistance vouchers will help nearly 1,000 individuals with disabilities rent private apartments. In October 2010, HUD awarded $33 million to support a first round of 4,300 vouchers. Individuals also can receive health care support through HHS' "Money Follows the Person" grant program, which allows individuals who qualify for Medicaid-funded nursing home or other institutional care to receive such services in community settings.

Now in its fourth year, the MFP program has made it possible for almost 12,000 individuals to live more independent lives, HHS said.

This content was published online only.

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