On September 1, 2009, CMS issued a letter to State Medicaid Directors to provide initial guidance on state administration of the incentive payments for eligible Medicaid providers who adopt and become meaningful users of electronic health records. These incentives were authorized by the American Recovery and Reinvestment Act (ARRA), specifically section 4201 titled Health Information Technology for Economic and Clinical Health (HITECH). Under the ARRA, HHS is authorized to reimburse states 100% of the incentives paid to eligible providers, and 90% of the state’s planning and implementation expenses incurred to administer the Medicaid incentive program. The criteria that states must meet, as set forth in this initial guidance, illustrates that states should act promptly to engage in certain, significant planning activities in order to ensure that the ARRA Medicaid incentives can be made available in a timely manner to eligible Medicaid providers in the state.
State HIT Grants & Loans
Kentucky Governor establishes Office of Electronic Health Information
On August 14, 2009, Kentucky Governor Steve Beshear signed an Executive Order creating Kentucky’s Office of Electronic Health Information. This new Office will be the conduit for development of health information exchanges and the stimulus grants available to states under the HITECH Act. The Secretary of Kentucky’s Cabinet for Health and Family Services is vested with authority to appoint the Executive Director for the Office.
The press release announcing the creation of the office states that the Kentucky E-Health Network Board, which is administratively attached to the Cabinet for Health and Family Services, will also serve as an integral resource to the Office as it moves forward. CHFS Secretary Janie Miller said, “The Governor’s action will allow the Commonwealth to be in a position to apply for federal stimulus funds for planning and implementation of health information exchange to support infrastructure and build resource capacity, particularly for underserved communities.” The Executive Order’s effective date is August 16, 2009.
ARRA’s Competitive State HIT Grants and the Small Physician Practice
Many small physician practices may be relying on health information technology (HIT) loans from their state to adopt electronic health records (EHRs) in their practices. Before a physician can seek such a loan, the state must have such loans available. The American Recovery and Reinvestment Act of 2009 (ARRA) provides grants to states to make such EHR loans available to health care providers. However, states must competitively bid for the ARRA HIT grant money to be made available for such loans.
ONCHIT Policy Committee Releases Draft Definition of Meaningful Use to Qualify for HITECH Act’s Medicare Incentives
Article Summary: The Meaningful Use Workgroup of the Office of National Coordinator’s HIT Policy Committee presented its initial draft of “meaningful use” at the Committee’s June 16, 2009 HIT Policy Committee meeting. As the National Coordinator and Chair of the HIT Policy Committee, David Blumenthal, M.D., M.P.P., reminded the meeting’s participants: “This is an initial draft, which has a long way to go.” Health reform clearly is a cornerstone of the Meaningful Use criteria. The Committee established five key Meaningful Use goals with criteria that will be stengthened every two years based on that year’s specific objective.
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