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Specific Measures for PVRP

Beginning this year, dermatologists will have an opportunity to directly participate in the Physicians Voluntary Reporting Program with the Centers for Medicare and Medicaid Services. Three dermatology-specific measures are included for 2007, Dr. Stephen Stone, president of the American Academy of Dermatology, said at the academy's annual meeting. Dermatologists who wish to participate in the program will be asked to submit data to the CMS on three melanoma-related components: patient medical history, complete physical examination, and counseling on skin self-examination. Both G codes and CPT II codes will be available for these measures, said Dr. Stone. The G codes are temporary and will be used until all data can be submitted electronically.

State Victories in 2006

At the AAD meeting, Dr. Stone also enumerated several legislative and regulatory victories for dermatologists at the state government level. In Wisconsin, dermatologists worked with plastic surgeons to defeat a proposal that would allow aestheticians to expand their scope of practice to include performance of chemical peels under remote supervision. The final rule restricted the providers to performing chemical exfoliation only, not medical grade peels, said Dr. Stone. This year, the AAD is fending off encroachment by nondermatologists in a number of states including Georgia, Mississippi, Missouri, New York, Oklahoma, Texas, Virginia, and Wisconsin, he said. In New Jersey, dermatologists, plastic surgeons, ophthalmologists, and other physicians worked together to repeal a 6% gross receipts tax on cosmetic procedures that went into effect in 2004. The repeal bill passed both houses of the New Jersey legislature and is awaiting the governor's signature, Dr. Stone said. There was one defeat. Pathologists in Missouri successfully secured passage of a law that allowed them to directly bill patients. Dr. Stone urged AAD members to get involved in government affairs at all levels. "The more representation we have, the more influence we will have," he said.

Derms Don't Get No Respect

In what seems to be a yearly effort, the AAD is launching an ad campaign to boost dermatologists' profile as specialists. "The public is confused about who really has the expertise [to provide skin care] and they are getting misleading messages," Dr. Stone said at the AAD meeting. "Unless the public understands the distinction between a dermatologist and nondermatologist, this problem will continue to grow," he added. Therefore, the academy will run a national print advertising campaign "that conveys the essence of the specialty" in the March issue of six national magazines, including Prevention, Real Simple, Redbook, and O: The Oprah Magazine. The ads ask: "There are thousands of reasons to see a dermatologist, what's yours?" and end by telling consumers, "Trust the expert care of a board-certified dermatologist." Dr. Stone said the ad "communicates our message in an assertive but nonthreatening way."

FDA's $2 Billion Budget

The Bush administration is requesting $2.1 billion for the Food and Drug Administration in fiscal 2008, a 5% increase from the previous year's request. The agency still has not received its final appropriation for fiscal 2007, so the exact amount it will receive for that year is not known yet. The budget includes $444 million in user fees from industry, including a new program to charge generic drug makers fees to review their products. The agency estimates that generic companies will contribute $16 million in fiscal 2008. In a statement, Generic Pharmaceutical Association CEO Kathleen Jaeger said the decision to seek user fees "will not bring generic medicines to consumers faster as long as brand companies are still permitted to use tactics that delay market entry." The budget also includes $11 million for improving drug safety (this does not include user fee funds that will also go to that effort) and $7 million to boost medical device safety and to speed up device review. The agency also is requesting $13 million to move about 1,300 employees of the Center for Devices and Radiological Health to offices at the FDA's new White Oak, Md., campus. The FDA has been gradually moving its operations to the new facilities. The Washington-based consumer-, patient- and industry-supported Coalition for a Stronger FDA said the budget did not go far enough. It is seeking at least $175 million more, including greater increases for food, drug, and medical device safety.

Medicare Generic Drug Use Rises

The CMS says that generic drugs accounted for 60% of the prescriptions dispensed to people who receive benefits through either Part D or Medicare Advantage plans for the first three-quarters of 2006. Generic drug use among Part D enrollees is 13% higher than for Americans who receive benefits through private payers, said the CMS. The agency said that in 2006, generics accounted for 53% of prescriptions dispensed to privately insured Americans. Greater use of generics will translate into lower costs for the Part D program and possibly expanded coverage for beneficiaries, according to the CMS. "We will continue to promote generics where they are available as an important strategy to keep the new drug benefit affordable over the long term," CMS Acting Administrator Leslie Norwalk said in a statement.

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