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Amendment to Senate bill would delay tax on device firms until 2013
12/15/2009
Sens. Amy Klobuchar, D-Minn., and Evan Bayh, D-Ind., on Monday introduced an amendment to a Senate health reform bill that would impose the proposed $20 billion tax on device makers in 2013, instead of 2010, and exempt firms with an annual income of less than $100 million. Stephen Ubl, president and CEO of AdvaMed, said such an amendment would "help protect small companies who are often the drivers of both innovation and employment."
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Report ranks Buffalo, Rochester and Syracuse among top 20 metro areas
12/15/2009
Rochester Business Journal
Rochester ranks among the top 20 percent in overall performance during the recession when compared with all 100 metropolitan areas of the United States, a report released Tuesday by the Brookings Institution states.
Metro Rochester, along with Buffalo and Syracuse, are among the top 20, the Washington, D.C.-based
think tank reported. The ranking are based on changes in employment, the unemployment rate, gross metropolitan product and housing prices during the recession.
Rochester ranks third with Buffalo and Syracuse with an average increase in housing prices of 4.3 percent in the third quarter compared with the third quarter of 2008, indicators showed.
Rochester’s unemployment rate increased by 2.3 percent from September 2008 to September 2009, the report states. The increase was the 15th smallest change in percentage.
Employment in the Rochester area declined by 2.1 percent, also a No. 15 ranking, from its recessionary peak.
It ranks with 65 other areas whose manufacturing output grew and jobs declined at a slower rate in the third quarter than in the second quarter, indicators showed. Thirteen metro areas, including Buffalo and Syracuse, saw their output and jobs grow in the third quarter.
(c) 2009 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or e-mail service@rbj.net.
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Governor Paterson Accepts Final Report From The Task Force On Diversifying The New York State Economy Through Industry-Higher Education Partnerships
12/14/2009
State of New York | Executive Chamber
David A. Paterson | Governor
For Immediate Release: December 14, 2009
Contact: Marissa Shorenstein |
Marissa.Shorenstein@chamber.state.ny.us | 212.681.4640 | 518.474.8418
GOVERNOR PATERSON ACCEPTS FINAL REPORT FROM THE TASK FORCE ON DIVERSIFYING THE NEW YORK STATE ECONOMY THROUGH INDUSTRY-HIGHER EDUCATION PARTNERSHIPS
Report Makes Recommendations for Increased Economic Development in the Innovation Sectors; Outlines Steps that Will Further Position New York as Leader in the New Economy
Governor David A. Paterson today accepted the final report from the Task Force on Diversifying the New York State Economy through Industry-Higher Education Partnerships. The Governor created the Task Force last May to examine how the State can better utilize its university-based research and development resources to drive economic growth. David Skorton, Task Force Chair and President of Cornell University, joined fellow Task Force members to present the Governor with their findings at the New York Stock Exchange in lower Manhattan.
“A New Economy is emerging in this country – an economy based on knowledge, technology and innovation. If we are to take advantage of the New Economy’s opportunities, like quality jobs for people from diverse backgrounds and with diverse skill sets, we must provide an environment for innovation entrepreneurship and technology commercialization. We have all the pieces. But we have failed to put the pieces together,” Governor Paterson said. “That’s why I created this Task Force – to learn how we can build on a strong foundation of cutting edge research and capital development. With this report and these recommendations, we have the blueprint for how to move forward.
“I want to thank David Skorton for his commitment to this work and his leadership, as well as all the Task Force members and staff who produced this report with such diligence,” Governor Paterson added. “New York can, will, and must lead this New Economy. The report and recommendations I am receiving today will help get us there.”
New York already possesses many of the fundamentals required to become a universally recognized center of innovation. On top of the $4 billion in university-based research, New York is home to world-leading companies whose research and development is bringing innovative products to market. However, New York still lacks a statewide culture that prioritizes commercialization activities and promotes university-industry collaboration on a variety of levels. The proposals and recommendations of this report outline the development of an ‘innovation ecosystem,’ which streamlines the State’s assets to promote development.
Task Force Chair and President of Cornell University David Skorton said: “We know that New York has all the right ingredients to get our State moving to where we should be – as a national leader in innovation. But there are challenges we need to meet. Our Task Force has identified areas in which we can improve our practices and target investments so that we can foster an ‘innovation ecosystem’ to achieve sustainable economic growth in New York for the future.”
Key recommendations to create this “innovation ecosystem” consist of:
- University practicesthat raise awareness of entrepreneurship and industry-collaboration opportunities on and off campus; achieve world class expertise through faculty recruitment and retention;
- Industry practicesthat leverage open innovation principles and university expertise to stay on the cutting edge; pursue long-term umbrella agreements with universities for access to a portfolio of intellectual property; and generate support for the adoption of a research and development tax credit;
- Access to Capital, which provides critical access to capital for university –based start-ups through the creation of a seed fund and the reduction or elimination of capital gains taxes for founding investors to bridge the “valley of death;”
- Business Servicesthat include business plan counseling, entrepreneurial mentorship. Access to capital, incubator space and regional hubs;
- Critical Mass in Strategic Areas that invests in fields where New York can be a world-leader-health care and life sciences, energy, nanotechnology, and agriculture and the food industry;
- State Practiceswhich create an Innovation Advisory Council consisting of leaders from government, academia, industry and the investment community to advise the Governor and Legislature on promoting New York’s innovation economy; and collect and publish data relating to innovation capacity, activity and impact;
- Communication Networksthat facilitate collaboration between institutions of higher education and industry and the venture capital community; and
- Metrics that measure statewide and university-level performance on innovation capacity, activity and outcome.
The final report of the Task Force on Diversifying the New York State Economy through Industry-Higher Education Partnerships is available online at:
http://www.ny.gov/governor/reports/pdf/IHETF_Report_FINAL.pdf.
Edward Reinfurt, Executive Director of the New York State Foundation for Science Technology and Innovation (NYSTAR) and Task Force member said: “As part of the Governor’s Task Force, NYSTAR recognizes the importance of creating an ‘innovation ecosystem.’ By promoting industry-higher education partnerships, the State will have significantly greater opportunities for sustainable economic growth. The findings and recommendations both point to the immense opportunity that exists in the state as well as the urgency of action.”
Assembly Speaker Sheldon Silver said: “The Empire State is home to some of the finest colleges and universities and most innovative minds in the nation. By bringing together our institutions of higher education, business and private investment, we will restore New York State as a leader in research, economic development and job creation.”
Senator Toby Ann Stavisky, Chairwoman of the Senate Committee on Higher Education, said: “Higher education can be the economic engine that revives many communities, whether it’s Troy’s tech valley, Albany’s nanotechnology center, or in Buffalo.”
Assemblywoman Deborah Glick, Chair of the Assembly’s Higher Education Committee, said: “Establishing the Task Force was a crucial step in analyzing New York’s potential for growing our economy in a future that will be driven by research based innovation. New York has an incredible resource in its institutions of Higher Education – both public and private – and our businesses increasingly will emanate from collaboration with the higher education sector.”
Linda Sanford, Senior Vice President, Enterprise Transformation, IBM, and a member of the Task Force, said: “Access to the world-class institutions of higher education is a great attraction for the business community in New York State. This report provides actionable recommendations that will promote collaboration, innovation and further economic growth. I look forward to working with the Governor, the Legislature, and my colleagues in the academic and investment communities to implement the ideas of the Task Force.”
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Senators take on data mining
12/11/2009
physician prescribing habits and selling it to drugmakers. Pharma companies pass this information on to their sales reps, who use the data to tailor their pitches to the doctors.
But two lawmakers are hoping to change that. Sens. Herb Kohl of Wisconsin and Dick Durbin of Illinois have proposed an amendment to the healthcare reform bill that would ban the practice of data mining--bringing an end to "harassing sales practices" and lessening pharma reps' influence over physician prescribing habits, they say. The Senators maintain data mining leads to drug marketing that drives up drug costs. "The more pressure there is on Medicaid budgets and private insurance premiums, the more state legislators are realizing that industry marketing promotes expensive drugs over less expensive ones," Marcia Hams, director of prescription access at Community Catalyst, tells the AP. She adds that data mining will garner more attention as legislators realize how much it influences drug marketing.
On the state level, New Hampshire and Vermont have already passed laws against data mining, despite lawsuits from IMS and Verispan. Maine tried to enact a similar measure but has thus far been unsuccessful. The healthcare reform bill already passed by the House does not limit data mining.
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Obama endorses alternative to public option in Senate health bill
12/10/2009
White House Pins Hopes on Senate's Deal
President Says Compromise Could Pave Way for Passage of Health-Care Overhaul, but Several Democrats Remain Undecided.
WASHINGTON -- President Barack Obama on Wednesday endorsed a Senate Democratic compromise that backed away from a big government-run health plan, calling the idea a "creative framework" that could propel a health bill to passage.
Republicans condemned the compromise as an act of desperation. But the deal received cautiously favorable comments from Democratic senators who remained on the fence, as well from some House Democrats, raising hopes that Senate leaders may be near locking up the 60 votes needed for passage. "We're moving toward that," said Senate Democratic Whip Richard Durbin of Illinois. "But, believe me, there are legitimate and serious questions being raised."
A group of senior Democrats, including both moderates and liberals, reached a deal Tuesday night to open Medicare to people ages 55 to 64, allowing them to buy into the program that was originally created to provide health insurance to the elderly.
In addition to the Medicare expansion, the Democratic senators agreed to empower the government's Office of Personnel Management to put in place a new low-cost national health plan, akin to the plans offered to federal employees and members of Congress. The new national plan would be run by nonprofit entities set up by the private sector, and would be available to the public on the new insurance exchanges to be created under the bill.
Left on the cutting-room floor was a provision coveted by many liberals that would have had the government directly run a new health-insurance plan. Senate Majority Leader Harry Reid (D., Nev.) included the "public option" in the bill he originally submitted to the Senate floor, but backed away after several key senators called it a deal-killer.
Speaking at the White House, Mr. Obama said senators had "made critical progress" with a compromise that would "help pave the way for final passage." The president added, "I support this effort, especially since it's aimed at increasing choice and competition and lowering cost."
Republicans, who almost unanimously oppose the Democratic plans, warn that expanding Medicare could spell trouble for a program that already faces financial woes. They also said seniors would have a tougher time finding a doctor if more people were on Medicare.
"Senate Democrats are clearly ignoring the fiscal train wreck that Medicare represents," said Rep. Tom Price (R., Ga.), a leader of House conservatives.
A handful of wavering senators remain undecided. Sen. Ben Nelson (D., Neb.) said he would await an analysis by the nonpartisan Congressional Budget Office before deciding whether to support the deal. "I haven't signed on to the proposal," he said.
Sens. Mary Landrieu (D., La.) and Blanche Lincoln (D., Ark.) said they also needed to see the CBO analysis.
Sen. Joseph Lieberman, the Connecticut independent who has been adamant in his opposition to a public option, issued a statement saying he was "encouraged by the progress," but stressed any Medicare expansion shouldn't undermine "the solvency of the program."
Mr. Reid is making a priority of unifying his 60-member caucus, which includes 58 Democrats and two independents, though he hasn't ruled out getting support from Maine Republican Sen. Olympia Snowe. If the compromise holds, test votes likely loom early next week.
In November, Democrats muscled a health-overhaul bill through the House, where they have tight control of the floor. But prospects for passage in the Senate, where their majority's ability to dictate the agenda is weaker, have always been uncertain. That is why any bill that can get the support of 60 senators is likely to form the backbone of a final bill.
"If this helps them get a bill, that's a major plus," Rep. Henry Waxman (D., Calif.) said of the broader compromises on the table in the Senate. "It has the potential to appeal to progressives, and others as well." He cautioned that he still wanted to see the details of the compromise.
Some House liberals raised concerns about the Senate's apparent turn away from a direct government plan. But many liberals voiced delight at the prospect of expanding Medicare. Rep. Anthony Weiner (D., N.Y.) said the buy-in provision "would be the largest expansion of Medicare in 44 years and would perhaps get us on the path to a single-payer model," meaning universal government-run health coverage.
MoveOn.org, the liberal advocacy group, circulated a memo to activists saying Senate Democrats had "bargained away the heart of health-care reform."
The U.S. Chamber of Commerce, meanwhile, said the bill would impose excessive costs on companies, depress wages and discourage hiring. "It's time to start over," said Bruce Josten, the chamber's executive vice president.
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Democrats consider Medicare expansion as alternative to public option
12/8/2009
Senate Turns To Medicare, Medicaid
Democrats Weigh Health Compromise That Would Expand Programs; Scaled-Back Public Plan Gains Fans
WASHINGTON -- Senate Democrats are considering a significant expansion of Medicare and Medicaid, the health programs for the elderly and the poor, as part of a package of potential changes to health-overhaul legislation that would also sharply scale back a proposed new government-run insurance plan.
The proposals have emerged in closed-door negotiations among 10 Democratic senators -- five moderates and five liberals -- assigned by party leaders to break the political deadlock that has slowed Senate action on the health bill.
Negotiators Monday were considering a proposal that would open Medicare to people ages 55 to 64 if they couldn't find coverage elsewhere. The proposal would allow them to buy insurance coverage at subsidized rates under Medicare, though the subsidies wouldn't be as great as those for people 65 and over, said congressional aides and lawmakers.
A companion proposal would expand Medicaid beyond what is already called for in the bill. Under one scenario, people with incomes up to 150% of the federal poverty level would qualify for the program. The poverty level is currently about $22,000 for a family of four.
Both changes would represent major expansions of the programs. They were sought by liberal Democrats after moderates won concessions on the government-run plan that would give private entities a bigger role.
The question of whether to create a government-run plan, or "public option," has divided Democrats, and the trade-offs may not settle the debate. Some moderates, for example, have concerns about expanding Medicare and Medicaid. But the push for compromise Monday dramatized the urgency felt by top Democrats to move forward on legislation coveted by the White House.
"We have to find the right balance that satisfies the party," said Sen. Charles Schumer (D., N.Y.).
The latest proposal on the public option would empower the government's Office of Personnel Management -- which already oversees federal employees' health plan -- to run a new national health plan. The office would negotiate terms with private insurers, and then contract with nonprofit entities set up by the private sector to run the program, congressional aides said.
The legislation is designed to control the growth of health-care costs while expanding insurance coverage. It would create a new national exchange where individuals and small businesses could buy insurance, and it would provide tax subsidies to help low- and middle-income individuals and families comply with a mandate to carry insurance.
Several Democrats voiced support for the emerging compromise. "The discussions are going in the right direction, and moving away from a government-run plan," said Sen. Ben Nelson (D., Neb.). Sen. Nelson is among the 10 senators negotiating the deal, but is also one of the wavering lawmakers Democratic leaders are trying to win over.
Sen. Debbie Stabenow (D., Mich.), who has supported the public option, said she is also open to the change. "If we can do the same thing through another mechanism and get broader support, I'm willing to look at that," she said.
The scaled-back government plan got a warm reception from some in the insurance industry, which has opposed the version of the public option in the Senate bill.
But some health-policy specialists were skeptical the plan would do much to lower insurance prices or generate competition, noting the exchange would already include nonprofit plans operated by private entities.
"I have no idea how this increases any competition in the exchange beyond what it would be anyway," said Robert Laszewski, a health-policy consultant. "This is about getting the term public option on something, but it's the equivalent of putting the term Ferrari on a motor scooter."
The push for compromise on the public option came as the full Senate plunged into debate on whether to tighten insurance coverage of abortion in the bill. Sen. Nelson introduced an amendment to remove abortion coverage from the public plan and prevent any woman who gets a new tax credit to buy insurance from enrolling in a plan that covers the procedure.
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Senator Grassley seeks financial details from medical groups
12/7/2009
A top Republican senator, Charles E. Grassley, has sent letters to the American Medical Association, the American Cancer Society and 31 other disease and medical advocacy organizations asking them to provide details about the amount of money that they and their directors receive from drug and device makers.
Such funding amounts are often considered proprietary by the organizations and their directors, but critics contend that the industry’s sway over such groups leads them to lobby on industry’s behalf.
Mike Lynch, a spokesman for the A.M.A., said the organization had received the senator’s letter and would respond. He said industry funding comprised less than 2 percent of the organization’s budget. Steve Weiss, a spokesman for the American Cancer Society, sent an e-mail stating that the society “holds itself to the highest standards of transparency and public accountability, and we look forward to working with Senator Grassley to provide the information he requested." Kate Meyer, a spokeswoman for the Alzheimer’s Association, which also received a letter from the senator, said the organization “was going to answer all of his questions,” but she would not immediately say what share of the organization’s funding comes from drug or device makers.
The letter from the Iowa Republican is part of his long-running investigation into the pervasive influence of drug and device makers on the practice of medicine. Mr. Grassley has also long been interested in how charities get and spend their tax-deductible contributions.
“These organizations have a lot of influence over public policy, and people rely on their leadership,” Mr. Grassley said. “There’s a strong case for disclosure and the accountability that results.”
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Bayer's neurology pipeline could boost its diagnostic imaging unit
12/2/2009
Bayer sees growth for diagnostics in nerve diseases
Bayer is banking on new tests to diagnose nervous system diseases such as Alzheimer's and Parkinson's to counter sluggish growth in the market for conventional diagnostic imaging, an executive said.
'We have a very good pipeline in neurology, in diseases such as multiple sclerosis or Parkinson's,' the head of Bayer's diagnostic imaging business told Reuters in an interview late on Tuesday, adding that cancer tests also offered growth opportunities.
In 2009, the unit will at best match last year's 1.3 billion euros ($2 billion) in sales, hurt by a weak dollar and by cost cuts at U.S. hospitals and healthcare insurers, unit head Hans Maier said.
The diagnostic imaging unit relies on sales of contrast agents used for computer tomography (CT) scanners, which cost up to 2 million euros, and for magnetic resonance (MR) scanners, which set hospitals back as much as 5 million euros.
Its products include the Primovist injection, which makes liver tumours visible under an MR scan.
While the overall market for CT and MR contrast agents was unlikely to grow by more than 2 percent per year, global demand for new, so-called molecular diagnostics products looked set to see double-digit percentage growth, Maier said.
While conventional CT and MR imaging methods visualise broader anatomical structures, molecular imaging goes beyond the cellular level, sometimes flagging diseases even before symptoms occur and offering new ways to diagnose nervous system diseases and tumours.
Bayer this week started the third and last stage of testing of its Alzheimer's marker florbetaben, which could offer a way to diagnose early onset of a disease that can only be deduced from advanced disabilities such as memory loss and impaired movement.
Bayer expects results from the Phasee III trials on florbetaben in 2014 and foresees 250-500 million euros in peak annual sales from the product.
The company, Germany's largest drugmaker, is scanning for possible acquisition targets in the market for molecular imaging, Maier added.
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Orszag: Health care system may take "years to decades" to repair
12/2/2009
The White House budget director said Wednesday that it may take decades for America to have an efficient health care system even if Congress passes a major overhaul this year.
"It will be years to decades" before the nation has a properly working health care system that rewards quality over quantity, Peter Orszag told reporters. He said improving the quality of health care "is more like a lifelong nutrition or diet, not studying for an exam," but he added that continuous progress is a crucial goal.
Orszag is one of President Barack Obama's top aides in urging Congress to overhaul the U.S. health care system in the coming weeks. He acknowledged that many key elements of the pending House and Senate bills would not take effect for several years, but he urged Americans to embrace a gradual process.
The House-passed bill would bar insurance companies from denying coverage to sick people starting in 2013. A bill being debated in the Senate would do so in 2014.
The bills would create new government subsidies for buying insurance starting in 2014. Fines for individuals who refuse to buy insurance would begin in 2014, and increase in later years. Other provisions, such as subsidizing long-term care, also would be years away.
Orszag noted that some improvements to the health care system are already in the works. The economic stimulus bill enacted early this year included money to modernize medical record-keeping and to identify the most effective ways to address various medical needs. Both efforts should lead to better care, he said.
Orszag said the nation must move away from its long tradition of fee-for-service health care that tends to reward the number of procedures performed rather than the quality of care. The pending legislation includes pilot projects meant to reduce the number of patients who are quickly readmitted to hospitals, and to restructure payments to hospitals to discourage unnecessary procedures.
Orszag said limits on medical malpractice awards - which many Republicans favor, but are not in the bills - would do little to reduce health care costs.
He also rejected claims that the proposed Senate bill would not do enough to encourage people to buy health insurance before becoming seriously ill. Those who refused to buy coverage would be fined $95 in 2014, and up to $750 in later years. Critics say many people would pay the fine and gamble that a serious accident would not hit them with big medical costs before they could buy coverage.
Orszag said studies show that people base such decisions on complicated factors including "social norms," and not just on the "direct financial incentives or penalties" touching their wallets.
He said, for example, that penalties for speeding and failing to wear a seatbelt are similar, but millions of Americans insist on buckling up while tolerating speeding, because fast driving is more socially accepted.
Reactions to the proposed health care fines, Orszag said, "will depend on how social norms develop."
He said he believed the Senate will pass a bill and reconcile it with the House version, despite sharp divisions, especially among senators.
"We stand on the verge of a dramatic accomplishment," he said at an hour-long session with reporters.
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MDMA Washington Update December 2009
12/1/2009
Senate Debates Health Care Reform, Conflict Delays Progress
The United States Senate began formal debate on H.R. 3590, the Patient Protection and Affordable Care Act (PPACA). Debate is expected to extend until before the Christmas holiday and remains uncertain whether the bill has enough momentum to pass. Democrats still face the challenge of obtaining the necessary 60 votes needed for passage. The PPACA contains several provisions of interest to device manufacturers including an annual $2 billion tax on the industry, physician sunshine, comparative effectiveness research, payment bundling and shared savings pilot programs, an extension of the gainsharing demonstration project, and the creation of a Medicare Commission.
MDMA is working closely with Senate staff to improve the device related provisions, including the device tax. While MDMA opposes the imposition of a new tax on the industry, it is becoming less likely that the tax will be excluded in its entirety. Therefore, we are also engaged in discussions to minimize the impact of the tax on our membership, if it is included in the final bill. Specifically, MDMA has been working with the National Venture Capital Association and other groups on an amendment that would exempt the first $100M in U.S. sales from any tax and U.S. sales from $100M-$150M would be taxed at half the rate. We are also seeking to delay the start date of the tax date until 2013 and make it deductible.
CMS Announces New-Technology Add-on Payment Town Hall Meeting
CMS announced that it will be holding a Town Hall Meeting on the Fiscal Year 2011 applications for new-technology add-on payments for the Inpatient Prospective Payment System. The new-technology add-on process is designed to ensure adequate payment for new medical services and technologies under the IPPS. In the past, MDMA has commented on the lack of clarity and guidance provided by CMS to companies who are applying for the add-on payments.
The meeting will be held on Wednesday, February 10, 2010 starting at 1:00 PM AM EST at CMS in Baltimore. In addition, CMS will hold an informational workshop on the new-tech add-on process beginning at 8:30 AM.
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GAO Looks at First Round of Competitive Bidding of Durable Medical Equipment
The Government Accountability Office released a report focusing on the first round of competitive bidding for durable medical equipment. The Centers for Medicare and Medicaid Systems is currently in the process of transitioning reimbursement for DME products to a competitive bidding model from a traditional fee schedule. However, the program and transition has been plagued with criticism. Among other things, the GAO report found that round 1 of the bidding process presented several problems to suppliers, including poor timing and lack of clarity in bid submission information, a failure to inform all suppliers that losing bids could be reviewed, and an inadequate electronic bid submission system.
Read the report