One of the eight principles for modernization is combining parts A and B of the Medicare program in an attempt to strengthen its long-term financial security. Other principles include providing better coverage for preventive care and serious illness, allowing current beneficiaries and those approaching retirement the option of keeping the traditional Medicare plan with no changes, offering better insurance options like those available to federal employees, introducing competitive management tools such as competitive bidding to keep costs down, and encouraging high quality care for all seniors. Thompson also told the committee a subsidized prescription drug benefit should be part of modernization. Currently, HHS has plans underway to introduce a Medicare prescription drug discount card later this fall. The cards would provide a 10 to 25 percent discount beginning in January 2002.

Thompson emphasized the department’s desire to work with providers and cited a need to reduce regulatory and administrative burdens in Medicare as one of the principles. He told the committee, “Needed relief in regulation and oversight should be implemented….This will allow providers to spend more time and effort on patient care and less on paperwork...” He also said he is working to implement within the department a “culture of responsiveness” to concerns of beneficiaries, providers and others.

The full testimony can be viewed on the committee's web site at http://www.house.gov/ways_means/fullcomm.htm. (Jonathan Archey, jonathana@ohanet.org)

The suit argues that the Department of Health and Human Services' (HHS) issuance of the rule last December is an unconstitutional delegation of congressional authority. Congress did not originally intend for HHS to promulgate final privacy regulations. However, HHS gained that authority with a provision allowing the department to promulgate final regulations when Congress failed to pass privacy legislation within the thirty-six months following HIPAA’s enactment.

The suit also alleges that the HIPAA clause on pre-emption by more stringent state laws violates the Constitutional due process protection because it is too vague. Prior to the enactment of HIPAA, most states already had some patient privacy law, for issues such as doctor-patient privilege, HIV diagnosis or mental health care. The rule is unclear when a state law is pre-empted by the privacy regulations.

The plaintiffs recognize the benefits of protecting the privacy of patients, but are concerned with the privacy rule’s potential regulatory burden for health care providers. OHA is evaluating the lawsuit and will keep members apprised of the situation. The full text of the lawsuit is available at http://www.healthlawyer.com. (Rick Sites, ricks@ohanet.org)

GAO Report Cites Nursing Shortage
The General Accounting Office yesterday released a report finding that evidence suggests there is an emerging shortage of nurses available or willing to fill some vacant positions in hospitals, nursing homes and home care.

According to the report, the number of employed registered nurses (RN) per capita has declined in recent years, reversing steady increases between 1980 and 1996, while the national unemployment rate for RNs declined to 1 percent in 2000. The report goes on to say providers from around the country are having increasing difficulties recruiting nurses to work in a range of settings, and surveys of providers in several states and localities indicate rising RN vacancy rates. The GAO cites inadequate staffing, heavy workloads and the increased use of overtime as major factosr contributing to the current recruiting and retention problems.

The OHA Strategic Plan includes a heavy emphasis on reversing these trends and helping hospitals attract and retain talented and dedicated employees. For information on best practices for recruitment and retention, see the Workforce Forum on the OHA Web site (located in the Issues Forum section at http://www.ohanet.org).

To view the complete GAO report "Nursing Workforce: Emerging Nurse Shortages Due to Multiple Factors" posted July 19, look under Today's Reports at http://www.gao.gov. (Jean Scholz, jeans@ohanet.org)

DAILY NEWS CLIPS

For your daily health care news digest, go to the Hannah News Service's StateHealthClips.com.

Cleveland Clinic raises $256 million in four years
Canton Repository
Friday, July 20, 2001

Youngstown nurses reach tentative deal in 78-day strike
Canton Repository
Friday, July 20, 2001

UC chief of surgery thinks big
Cincinnati Enquirer
Friday, July 20, 2001