American Recovery and Reinvestment Act of 2009
(ARRA)
PrimaryData is here to assist with questions you may have on the American
Recovery and Reinvestment Act of 2009 (ARRA). We will feature
updated information on this page as well as links to pertinent
information.
President Obama signed the 2009 American Recovery and Reinvestment Act into law
February 17th in Denver, Colorado. There is $19 billion
allocated for healthcare information technology under the HITECH act
which includes up to $44,000 for each physician showing meaningful use of a
certified electronic health record under Medicare incentives or up
to $65,000 in Medicaid incentives if you meet qualifications.
PrimaryData has been following ARRA closely to assist practices
in participation decisions in this important healthcare technology
opportunity.
Healthcare Information Technology
Stimulus Funding
Physicians can choose to receive
economic stimulus funding for meaningful use of a certified EHR from
Medicare or Medicaid, not both.
Medicare Incentives
Medicare incentives begin in 2011 and are available to all non-hospital
physicians who see Medicare patients. Eligible physicians can receive up
to $44K over a five-year period and receive an additional 10% if they are
located in a Health Shortage Area. Physicians who have not adopted an EHR
by January 1, 2015 will be penalized through reductions to their Medicare
payments.
Medicare Incentive
Year Meaningful Use of EHR Begins
2011
2012
2013
2014
Penalty
2011
$18,000
2012
$12,000
$18,000
2013
$8,000
$12,000
$15,000
2014
$4,000
$8,000
$12,000
$12,000
2015
$2,000
$4,000
$8,000
$8,000
-1.0%
2016
$2,000
$4,000
$4,000
-2.0%
2017
-3.0%
Total
$44,000
$44,000
$39,000
$24,000
...
Health Shortage Area Additional 10%
$48,400
$48,400
$42,900
$26,400
EHR "Meaningful Use"
A meaningful user is a physician using software that supports e-Prescribing, submits information to
HHS on clinical quality measures, and demonstrates to HHS that they are using certified EHR technology.
Discussion of "EHR meaningful use" from twelve EHR vendor executives
here.
Above, an 8-minute video overview of the first draft of the
meaningful use criteria that was published in June 2009 by the Meaningful
Use Workgroup of the Health Information Technology Policy Committee by The Fox
Group.
Certified EHR Software • Provide clinical decision support;
• Capture and query information relevant to healthcare quality;
• Exchange and integrate electronic health information with other sources
Discussion of "certified EHR" from twelve EHR vendor executives here.
Medicaid Incentives
Medicaid incentives range up to $65K over a five-year period
and are available only to non-hospital based clinicians, including dentists,
certified nurse midwives, and physician assistants practicing in rural health
clinics or FQHCs. Requirements are that 30% of a provider's patients
must use Medicaid, with the exception of pediatricians, who are required to have
20% of their patients using Medicaid. The Medicaid startup incentive is up
to $25,000 in state loan funds available in year one toward the purchase a
certified EHR and providers who prove "meaningful use" can receive up to $10,000
annually for an additional four years. There are no penalities by Medicaid
for lack of EHR adoption.
Eligible Medicaid Providers
Payment Amounts
Payment Limits
Eligible provider
• Not hospital-based
• Minimum 30% Medicaid volume
85% of net average allowable costs (NAAC)
1st year payment - Lower of 1st year NAAC or $25,000 •
Must be paid by 2016
Subsequent year payments – Lower of subsequent year NAAC or
$10,000/year
• May not be paid after 2021
• May not be paid for more than 5 years
Eligible provider
• Practices predominantly in FQHC or RHC
• Minimum 30% needy individuals volume
85% of net average allowable
costs (NAAC)
1st year payment - Lower of 1st year NAAC
or $25,000• Must be paid by 2016
Subsequent year payments – Lower of subsequent year NAAC or
$10,000/year
• May not be paid after 2021
• May not be paid for more than 5 years
Pediatrician eligible provider
• Not hospital-based• Minimum 20% Medicaid volume
85% of net average allowable
costs (NAAC)
Reimbursement limits are 2/3 of amounts specified above for other
types of eligible providers
Medicaid Incentive
Year Meaningful Use of EHR Begins
2011
2012
2013
2014
2015
2016
2011
$25,000
2012
$10,000
$25,000
2013
$10,000
$10,000
$25,000
2014
$10,000
$10,000
$10,000
$25,000
2015
$10,000
$10,000
$10,000
$10,000
$25,000
2016
$10,000
$10,000
$10,000
$10,000
$25,000
2017
$10,000
$10,000
$10,000
$10,000
2018
$10,000
$10,000
$10,000
Total
$65,000
$65,000
$65,000
$65,000
$55,000
$45,000
Provided for informational purposes only. These pages should not be used without professional advice. You should seek such advice solely from attorneys, accountants, compliance or other professionals you retain to advise you on these types of matters.
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