July 28, 1999

To Journalist Covering the Medicare Debate:

As you continue to report on President Clinton's Medicare reform plan, you will undoubtedly want to talk to stakeholders who are analyzing the details and evaluating the impact of this proposal on patients. While you may not immediately think of medical devices in the context of a new prescription drug benefit, the medical device industry has first-hand experience in attempting to bring life-saving and life-enhancing medical technologies to Medicare patients. Unfortunately, this experience is often marked by bureaucracy and delays which seriously impede patient access to new technologies. The experience of the medical device industry should serve as a cautionary note on whether the Health Care Financing Administration (HCFA) can handle this new responsibility.

The Health Industry Manufacturers Association (HIMA), a Washington, D.C. trade association representing manufacturers of medical devices is concerned with the Administration's decision to retain a government-run model for Medicare. Under the current Medicare system, medical technologies must pass through three separate and distinct procedural hurdles before they are made available to Medicare beneficiaries. The lengthy process of coding, coverage and appeals delays patient access to new medical technologies.

In covering the Medicare debate, please consider HIMA staff as well as our member companies as a source for your stories. HIMA President, Pamela G. Bailey, co-chair's the Coalition to Save Medicare, a national communications voice for the campaign to save Medicare through market-based innovations. Bailey served as president of the Healthcare Leadership Council, a forum for health care leaders to jointly develop policies and programs to accomplish their goals on national public policy issues. She also held various positions at the White House and the Health and Human Services.

HIMA is supporting two bills which address HCFA's process for integrating medical technology into the health care system. A bill introduced by Representatives William Thomas (R-CA) and Pete Stark (D-CA) will enhance the rights of Medicare patients in appealing decisions made by HCFA and its local contractors to not pay for a new technology. A separate bill by Representative Jim Ramstad (R-MN) will bring much needed reforms to Medicare's payment and coding systems in order to keep pace with advances in medical practices. For more information on these bills, go to our website at www.himanet.com, or call us.

We believe the medical technology story, as it relates to Medicare, would be of great interest to your readers.

Sincerely,

Karen Alcorn Associate Vice President, Public Affairs 202-434-7240 kalconr@himanet.com

Linda Ruckel Director, Media Relations 202-434-7243 lruckel@himanet.com