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GOP-sponsored bill threatens MU funding

January 28, 2011 | Mike Miliard, Managing Editor

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WASHINGTON – Even as President Obama gave a State of the Union address this week in which he celebrated an emerging healthcare system where "patients will be able to have face-to-face video chats with their doctors" and "Veterans can download their electronic medical records with a click of the mouse," many Republican lawmakers were rallying around a bill that imperils funding for meaningful use incentives.

[See: Obama gives HIT the nod in State of the Union speech.]

The Spending Reduction Act of 2011 (H.R. 408), introduced on January 24 by Rep. Jim Jordan (R-Ohio), seeks to reduce federal spending by $2.5 trillion over the coming decade. As it does so, 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and titles III through VII of division B of the American Recovery and Reinvestment Act of 2009 (Public Law 111-5) are repealed, and the provisions of law amended or repealed by such provisions of division B are restored or revived as if such provisions of division B had not been enacted."

Since the Medicare and Medicaid EHR Incentive Programs set up under the ARRA/HITECH Act of 2009 fall under division B, it would appear that the $27 billion earmarked for disbursement to healthcare providers to spurring EHR adoption would fall on the chopping block were the bill to ever pass.

For good measure, Jordan's Republican Study Committee also decrees that the enacted legislation would "further prohibit any FY 2011 funding from being used to carry out any provision of the Democrat government takeover of health care, or to defend the health care law against any lawsuit challenging any provision of the act."

[That represents a swift about-face from one year ago. See: House votes healthcare overhaul into law, promotes health IT.]

Of course, the bill's passage is hardly assured. The GOP holds majorities in the House, but the Democrats control the Senate. Moreover, this bill or any one like it would surely fall victim to President Obama's veto.

Dave Roberts, vice president of government relations for HIMSS, is less worried about the bill being signed into law than he is about the climate it creates.

The draft has already been referred to 14 different committees in the House, he says, so it's going to be a while before it sees any floor action.

The problem is that it's already "creating confusion in the industry," says Roberts. "We've heard from some CIOs, asking us, 'What is this? We hear the House is going to rescind our money.' It adds to the confusion in the whole marketplace. And providers and hospitals who want to purchase this [technology] are wondering, 'Do I really want to start down this path?'

"We're trying to tell people," he says, "that this process is going on. This is only one body [of Congress]. Don't let this be a concern."

But, Roberts cautions: "We're leading up to the 2012 elections. The Senate's majority is very reduced right now. And if this is a new way of thinking, that could be concerning. So I think that while this particular bill may not pass, it's something that has to be watched closely."

Related Topics:
  • ARRA/Stimulus
  • Dave Roberts
  • Jim Jordan
  • Mike Miliard
  • Ohio
  • Republican Party
  • Senate
  • Washington

Reader Comments (3)Login to Post a Comment

PGHD says: But what is the mission of healthcare in the US?
February 28, 2011 | 5:09PM GMT

Working now in the US it is difficult to resolve the arguments I hear when I have come from working in the NHS. The NHS started in 1948 with a clear mission stated in 3 principles as to what they were trying to do.

I have asked many professionals in US healthcare and there does not seem to be an overall mission statement. The mission statement from Kennedy's speech in 1960 whatever was simple - to put a man on the moon in 10 years. We need a mission statement like that for healthcare.

Here I see people who get all the healthcare they need - and more than they need - because of wealth or exceptional health plans. But I see more people who get poor and inadequate healthcare who then spiral down into bankruptcy and foreclosure.

TeddyB says: MU incentives DISRUPT
January 28, 2011 | 1:16PM GMT

Let the free market decide. All too often an industry gets sucked in by the vacuum of the government teat. Case in point - Cash for Clunkers. And this cause, MU incentives crammed into a bill designed to take over an entire industry. Approximately 1/6 of our economy. Take government control out the way and the industry will adjust accordingly.

dberger05 says: Why EHR Meaningful Use Incentives Are Safe
January 28, 2011 | 12:23PM GMT

As I wrote in last week's Redspin Blog, given the House vote to repeal healthcare reform and the increased emphasis on budget reductions, it’s not surprising that some healthcare IT professionals wonder if the potential $29 billion in EHR meaningful use incentive payments promised under the HITECH Act are secure. D

During our January 20th webinar “Assessing HIPAA/HITECH Risks: What You Need to Know,” I was asked this question several times. My short answer: EHR incentives will remain untouched. Read why here: http://wp.me/pymfm-yi

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