American Recovery & Reinvestment Act

On February 17, 2009, President Obama signed into law the American Recovery & Reinvestment Act (ARRA) to stimulate the U.S. economy. The bill allots over $60 billion to encourage the use of Electronic Health Records throughout the medical community: $46 billion towards pay-for-performance, and $14 billion in grants.

Physicians will have to choose either Medicare or Medicaid incentives; they cannot get both. While hospitals can apply for both Medicare and Medicaid incentives, children’s hospitals cannot.

Incentives are projected as follows:

MEDICARE: Physicians who accept Medicare can receive up to $44,000 over the five-year period. Physicians who practice in a “provider shortage” area are eligible for an additional 10% incremental increase. Providers such as anesthesiologists or pathologists, who deliver care entirely in a hospital environment, are ineligible. Beginning in 2011, physicians who “meaningfully use” an approved HIT system are eligible to receive up to 75% of their allowable Medicare charges as an incentive, providing it does not exceed the maximum incentive payment allowable for that year.

“Early adopters” (those who implement an HIT system by 2011 – the first year that incentives are available – or by 2012) receive an even higher payment ceiling, i.e. as much as $18,000 the first year they adopt the technology. For example, if a physician’s allowable charges in 2011 or 2012 total $24,000 or more, the full yearly bonus would total $18,000.

MEDICAID: Physicians seeing more than 30% of patients paying with Medicaid (20% for Pediatricians) are eligible for payments up to $64,000 over five years. Individual doctors can get as much as $25,000 in year-one Medicaid incentives to partially offset the initial cost of the technology. Physicians can then earn up to $10,000 annually for four additional years to support “meaningful use” of EHR.

gloStream available from Binatech System Solutions is one of only a handful of systems that feature a fully integrated Practice Management and a CCHIT-certified and customizable Electronic Health Record solution. With features like e-Prescribe, comprehensive electronic encounter documentation and more, the gloStream enables your practice to capture, view and report the data required for government incentive programs.

Meaningful Use:

To be eligible for incentives physicians must be able to demonstrate “Meaningful Use” of the Healthcare IT. The EHR in use must be certified and include these functions:

Electronic prescribing

Connectivity to other providers that improves access to full visibility of a patient’s health history

Capability to report on their use of the technology to HHS