The American Recovery and Reinvestment Act of 2009 Stimulus Funding
The ARRA act did not include Behavioral Healthcare adoption of EHR and is being reviewed by Congress for amending the act. We will post any progress towards that once we learn of the changes. For other healthcare agencies, the current law is explained below. We anticipate that if the act is amended for Behavioral Healthcare, the funding would be similar. Some funds may become available for Community Based Agencies on a state by state basis. Please check http://healthit.hhs.gov for more information about your eligibility.
Click below for information from the National Council for Community Behvarioral Health
- HITECH and Community Mental Health & Addiction Services
- HIT Provisions in the ARRA
- Proposed H.R. 5040: Health Information Technology Extension for Behavioral Health Services Act FAQ
The ARRA
You may be eligible to receive reimbursements for implementing EHR/EMR technology like ClinicTracker for your practice. Bydemonstrating that you’ve engaged with this technology in 2009 and 2010, your application for reimbursement will be better positioned to receive funding. In fact, those providers who do not use an EHR/EMR by 2015 will have their Medicare & Medicaid reimbursements reduced. Please review the information below or contact us to discuss the specifics and how you can take advantage of these funds.
The American Recovery and Reinvestment Act authorizes the Centers for Medicare & Medicaid Services (CMS) to provide a reimbursement incentive for physician and hospital providers who are successful in becoming “meaningful users” of an electronic health record (EHR). These incentive payments begin in 2011 and gradually phase down. Starting in 2015, providers are expected to have adopted and be actively utilizing an EHR in compliance with the "meaningful use" definition or they will be subject to financial penalties under Medicare.
The focus on meaningful use is a recognition that better health care does not come solely from the adoption of technology itself, but through the exchange and use of health information to best inform clinical decisions at the point of care. The final definitions of “meaningful use” will be published by the end of 2009.
Among other provisions, the new law provides major opportunities for the Department of Health and Human Services (DHHS), its partner agencies, and the States to improve the nation’s health care through health information technology (HIT) by promoting the meaningful use of electronic health records (EHR) via incentives. For a copy of the full bill, go to: http://www.hhs.gov/recovery/overview/index.html.
The HIT provisions of the Recovery Act are found primarily in Title XIII, Division A, Health Information Technology, and in Title IV of Division B, Medicare and Medicaid Health Information Technology. These titles together are cited as the Health Information Technology for Economic and Clinical Health Act or the HITECH Act.
Funding
Under Title IV, funding is available to certain eligible professionals (EPs) and hospitals, as described below. Funds will be distributed through Medicare and Medicaid incentive payments to EPs, physicians, and hospitals who are “meaningful EHR users.” In addition, with regard to the Medicaid program, federal matching funds are also available to States to support their administrative costs associated with these provisions.
Criteria for Qualifying for an Incentive
The qualification criteria for incentives (i.e., meeting specified HIT standards, policies, implementation specifications, timeframes, and certification requirements) are still in development, and will be defined through regulation and additional guidance materials. However, CMS generally expects that under Medicare, "meaningful EHR users" would demonstrate each of the following: meaningful use of a certified EHR, the electronic exchange of health information to improve the quality of health care, and reporting on clinical quality and other measures using certified EHR technology. Medicaid programs will determine their own requirements in line with the Medicaid-related provisions of the Recovery Act. Funds will be distributed through Medicare and Medicaid incentive payments to EPs and hospitals who are "meaningful EHR users." CMS intends to publish a proposed rule in late 2009 to propose a definition of meaningful use of certified Electronic Health Records (EHR) technology and establish criteria for the incentives programs. CMS is working extensively with the Office of the National Coordinator for Health Information Technology (ONC) to identify the proposed criteria.
Medicare Payment Incentives for Eligible Professionals
- The Recovery Act establishes financial incentives beginning in January 2011 for eligible professionals (EPs) who are meaningful EHR users. Beginning in 2015, payment adjustments will be imposed on EPs who are not meaningful EHR users.
- Hospital-based physicians who substantially furnish their services in a hospital setting are not eligible.
- Incentive Payments
- The incentive payment is equal to 75 percent of Medicare allowable charges for covered services furnished by the EP in a year, subject to a maximum payment in the first, second, third, fourth, and fifth years of $15,000; $12,000; $8,000; $4,000; and $2,000, respectively. For early adopters whose first payment year is 2011 or 2012, the maximum payment is $18,000 in the first year.
- There will be no payments for meaningful EHR use after 2016.
- There would be no payments to EPs who first become meaningful EHR users in 2015 or thereafter.
- For EPs who predominantly furnish services in a health professional shortage area (HPSA), incentive payments would be increased by 10 percent.
- Payment Adjustments
- The Medicare fee schedule amount for professional services provided by an EP who was not a meaningful EHR user for the year would be reduced by 1 percent in 2015, by 2 percent in 2016, by 3 percent for 2017 and by between 3 to 5 percent in subsequent years.
- For 2018 and thereafter, if the Secretary finds that the proportion of EPs who are meaningful EHR users is less than 75 percent, then the reductions will be increased by 1 percentage point each year, but by not more than 5 percent overall.
Medicaid Payment Incentives
The Recovery Act establishes 100 percent Federal Financial Participation (FFP) for States to provide incentive payments to eligible Medicaid providers to purchase, implement, and operate (including support services and training for staff) certified EHR technology. It also establishes 90 percent FFP for State administrative expenses related to carrying out this provision.
