WASHINGTON – The Senate is looking at spending $21 billion in incentives and funding for healthcare IT in the economic recovery package. Healthcare IT experts fear, however, that some privacy aspects of the bill could cost the industry millions of dollars.
The Senate Appropriations Committee has allotted $16 billion for healthcare IT and the Senate Finance Committee has approved $5 billion in discretionary funding for federal oversight of healthcare IT. Other Senate committees have yet to add to the bill.
The $825 billion economic recovery package has already passed the House, with $20 billion set aside for healthcare IT.
Healthcare IT experts have serious concerns over privacy stipulations appearing in the House bill, which is likely to be included in the Senate bill.
The measures would require healthcare IT businesses that currently operate as business associates under the HIPAA rule to operate like covered entities under HIPAA. This could potentially cost millions of dollars in administrative and accounting burdens for small businesses, including healthcare IT vendors, who work with hospitals, physicians practices, insurance companies, clearinghouses and other covered entities.
Both the Senate and House versions of the bill will have to be reconciled and passed before the bill can become law, with lawmakers hoping to pass it by Feb. 16.
Industry lobbyists who oppose the changes to HIPAA and privacy activists who support the measures are poised for a battle.
President Obama was on Capitol Hill on Tuesday, negotiating with Republicans over aspects of the bill. Some Republican leaders have argued that the House bill was written and passed with no regard for their minority views.
