House passes $472 billion federal health spending bill

Washington -- The House last month passed a $472 billion fiscal 2008 budget for the Dept. of Health and Human Services that would allocate more funding for key health programs. But the bill faces a veto threat from President Bush because its overall spending is more than the administration supports.

The measure would increase funding for Medicare, Medicaid and the National Institutes of Health. It rejects Bush's proposal to nearly eliminate funding for the Title VII program, which finances education and training programs for primary care physicians and preventive medicine specialists. It also rejects proposed funding cuts to the National Health Service Corps, which works to recruit primary care physicians for underserved communities.

The cuts would "irreparably harm necessary investments in the nation's health care work force," the AMA stated in a June 20 letter to House Appropriations Committee Chair David R. Obey (D, Wis.). The Association's letter also asked Obey to increase NIH research funding in general.

The House bill would appropriate $29.65 billion for the institutes in fiscal 2008, up $750 million (2.6%) from last year and $1.02 billion more than Bush requested in his budget.

The legislation would allow for 10,666 new and competing grants, an increase of 545 from fiscal 2007, according to House Democrats. It also would reverse a two-year freeze in the inflation adjustment for grants. The average new grant would receive a 2% increase.

The Assn. of American Medical Colleges supports the measure, said AAMC Senior Vice President David Moore. "A lot of people would like to see more money for programs in the bill, but we are fighting to hold on to what we have," he explained.

The National Assn. of Community Health Centers also endorsed the bill.

"We are ecstatic with the community health numbers," said NACHC Associate Vice President for Federal and State Affairs Craig Kennedy. The measure would allocate $200 million more for the centers, bringing the total to $2.19 billion.

The extra funds would allow the centers to treat more than 1 million more people, according to the NACHC. The centers serve about 16 million people now.

But the measure faces an uncertain future, said the AAMC's Moore. It must still pass the Senate, which could attach controversial provisions, such as loosening Bush administration restrictions on federal funding for stem cell research. The Senate could spend an entire day on just that provision, he explained.

Any differences between the House and Senate bills would need to be resolved, and then a final measure voted on in each chamber, he added. This process may not end until after the fiscal year expires on Sept. 30. On top of all that is Bush's threatened veto, Moore stated.

"This is going to get really messy," he predicted. "I hope they get it done by December."