According to senators Baucus and Conrad who, respectively, chair the Senate finance and budget committees, the institute created by the bill would be a private-entity, non-profit organization responsible for setting national priorities for comparative effectiveness research. The institute will be governed by a public-private sector board of governors and would not be an agency of the federal government.
The institute will be empowered to contract with federal agencies, or private researchers if appropriate, to conduct comparative effectiveness research studies, and be responsible for disseminating their findings to patients and providers alike. The objective of the institute will be to provide unbiased data to physicians and patients so as to enhance the effectiveness of health interventions and services and make the optimum use of available treatments.
The bill emphasizes stringent requirements for public input, transparency and integrity. It also stipulates the institute to publish its rules, proceedings and reports on a public internet site apart from making its meetings open to the public.
The institute will be started through the general revenues, for the first three years. A total of $5 million will be made available for the first year and later on the funding will be raised to $300 million a year by 2013. By the fourth year, all the funding will move to an all-payer system, from both public and private sources.
The Pharmaceutical Research and Manufacturers of America and insurance bodies such as the Blue Cross and Blue Shield Association have welcomed the initiative and pledged their support to the new legislation.