Wednesday, February 2, 2011

EHR Medicare and Medicaid Incentive programs are NOT Jeopardized

We've been hearing about the Republicans trying to repeal "Obama Healthcare" in very general terms. What does it mean specifically? How does it impact the Medicare and Medicaid EHR Incentive programs?


Let me dive in a bit more in detail. 


Rep. Jim Jordan (Republican, Ohio), introduced the Spending Reduction Act of 2011 (H.R. 408) on January 24. This bill seeks to reduce federal spending by $2.5 trillion over the coming decade! How? It singles out many federal programs for elimination.



Section 302 of the bill, titled "REPEAL OF CERTAIN STIMULUS PROVISIONS," states that "effective on the date of the enactment of this Act, subtitles B and C of title II and titles III through VII of division B of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) are repealed, and the provisions of law amended or repealed by such provisions of division B are restored or revived as if such provisions of division B had not been enacted."

Here's where it gets messy. The $27 billion earmarked for Medicare and Medicaid EHR incentives falls under division B.

If firmly believe the bill will not pass.

The GOP holds majorities in the House, but the Democrats control the Senate. President Obama will surely veto this bill if it ever comes to him.

I (and many other analysts and industry experts) am not worried about the bill being signed into law. What is worrisome is the confusion this bill creates. Providers are skeptical of anything that CMS does. This bill compounds the skepticism. I suspect many providers may hold off their purchasing decisions.

Providers should be looking at EHR technologies for the benefits it accrues to them and their practice. Stimulus incentive should be an added bonus. They should not be putting the cart before the horse. I hope this message comes out loud and clear.

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