1. 2010 CCLA Annual Conference
Washington Update:
What’s the Midterm Election
Impact for Labs?
Westgate Hotel
San Diego, CA
November 4, 2010
Dennis Weissman, President
Dennis Weissman & Associates, LLC and
Founder & Executive Editor
Washington G-2 Reports

2. Presentation Outline 2010 Mid-term Election Update
What the Election Outcome Means for
Healthcare & Lab Sector
Top Legislative Priorities for Lab Industry
Regulatory Hotspots for Labs & Pathologists

3. Current Partisan Breakdown
Senate: 57 Democrats 41 Republicans 2 Independents House: 255 Democrats 178 Republicans 2 Vacancies Governors: 26 Democrats 24 Republicans

4. Seats Up in Mid-Term Elections
Senate: 37 seats (34 are 6 year seats) Delaware: through Jan New York & West Virginia: Jan now held by Democrats --18 now held by Republicans House: all 435 seats are up for 2-yrs terms Governors: 37 state seats are up Democrats Republicans

5. Senate Election Results
Senate Races: Republicans win or leading: Democrats win or leading: Too close to call: 2011 projected Senate lineup: Democrats: Republicans:

6. House Election Results
House of Representatives Races: Republicans win or leading: Democrats win or leading: Too close to call: 2011 projected House lineup: Democrats: Republicans:

7. Gubernatorial Election Results
Governors’ Races: Democrats win or leading: Republicans win or leading: Too close to call: 2010 projected gubernatorial lineup: Democrats: Republicans:

8. Top Issues in 2010 Elections
State of U.S. economy
Unemployment/jobs
Dissatisfaction with government/politicians
Federal budget deficit/federal debt
Healthcare reform/high costs
Immigration/illegal aliens
Wars
Education

9. Political Outlook in 2011
Post-election session may well deadlock with 2011 tax policy on the front burner
Congressional gridlock like as severe partisan tensions divide Democrats & GOP
Both parties focus on their political bases with possible moderating force coming from newly elected GOP moderates
Budget deficit reduction & jobs are top issues
2012 presidential election politics colors all policy deliberations

10. Election Impact on Healthcare
Implementation of healthcare reform law
--repeal efforts on Capitol Hill & court
challenges unlikely to overturn law
--push to modify certain tax provisions
--GOP to use budget to slow implementation
Political stalemate surrounding Deficit Reduction Commission recommendations
Additional Medicare provider cuts not likely
Reform of physician SRG formula improbable

11. Top Legislative Priorities for Lab Industry
Prevent additional Medicare cuts for labs
Stop 21.5 cut in physician fee schedule under Medicare beginning Dec. 1 and a 27% cut on Jan. 1, 2011
Preserve pathology “grandfather” provision to allow labs to bill Part B directly for the TC for hospital inpatients & outpatients
Block any new federal requirements for molecular and/or genetic testing

12. Policy Focus for 2011 FDA oversight of laboratory-developed tests
Federal & state crack down on fraud & abuse
Opposition to CMS proposal to require physician or NPP signature on all test requisitions under Part B lab fee schedule
Federal response over growth in volume & increased Part B spending related to in-sourcing pathology services
CLIA slowdown in revised cytology PT rules
Court rulings on gene patents