New EHR Exemptions Proposed

Doctor Speaking with PatientA new bill entitled the “Electronic Health Records Improvement Act” has been introduced in the U.S. House of Representatives. Its stated purpose is to “amend certain requirements and penalties implemented under the Medicare and Medicaid programs by the HITECH Act of 2009, which would otherwise impede eligible professionals from adopting electronic health records to improve patient care.” Most notably, this bill proposes two new exemptions to the requirements to be a meaningful user of electronic health records (“EHRs”) that will be beneficial to solo physician practices and physicians nearing retirement:

  • Eligible Professionals in Small Physician Practices.  A physician who is a solo practitioner in 2015 would be exempt from the application of the downward payment adjustment for not demonstrating EHR meaningful use during the payment years 2015-2017.  Implementing EHRs require significant investments in time for vendor selection, capital, and staff resources—and solo practitioners typically do not have the necessary resources to invest in EHRs.  This exemption allows undercapitalized solo practitioners an additional three years to become a meaningful EHR user.
  • Exception for Certain Physicians Near Retirement Age.  A physician who will be eligible for Social Security by December 31, 2015 (or will be eligible during the 5-year period following that date) is also exempt from the application of the downward payment adjustment for not demonstrating EHR meaningful use during the payment years 2015-2017.  This exemption will encourage physicians nearing retirement to continue practicing medicine for several more years instead of retiring early to avoid implementing an EHR.  (Because this section of the Bill uses the terms “eligible professional” (in the text) and “physician” (in the title), there is some question as to whether this exception applies only to physicians nearing retirement or also applies to other types of eligible professionals, such as dentists, chiropractors, podiatrists, and optometrists.  Hopefully, this confusion will be clarified if this Bill progresses into law.)

Here is a link to H.R. 1331. This Bill is currently in committee, and we will watch its progress closely.

Update (1/31/2015):  Unfortunately, H.R. 1331 died in Committee.

The New HIPAA Rules are Out!

by Ann F. Triebsch

(Updated January 27, 2013)

On January 17, 2013, the Department of Health & Human Services (HHS), Office for Civil Rights (OCR), released the final HIPAA Omnibus Rule (Omnibus Rule) implementing the HITECH Act of 2009 and the Genetic Information Nondiscrimination Act of 2008 (GINA). The Omnibus Rule greatly enhances a patient’s privacy protections, provides individuals new rights to their health information, and strengthens the government’s enforcement capabilities. The regulations are published in the January 25, 2013 Federal Register, and will be effective on March 26, 2013, with compliance required by September 23, 2013.

We will discuss the highlights of the new regulations, topic by topic, in this blog over the next few weeks, but we begin with a key piece of information relevant to existing business associate agreements. The new regs substantially increase the privacy responsibilities of a business associate that receives protected health information, such as contractors and subcontractors. Business associates may also be liable for increased penalties for noncompliance based on the level of negligence, up to a maximum penalty of $1.5 million.

All of the new requirements will need to be reflected in business associate agreements (BAAs). If your current business associate agreement was signed on or before January 24, 2013, it will be deemed HIPAA compliant through September 23, 2014 (at which time the agreement will need to have been amended for compliance with the Omnibus Rule). After January 24, 2013, any new BAAs signed should comply with the Omnibus Rule, and be in place by September 23, 2013.

To read the Omnibus Rule, click here.

Electronic Health Records Already in OIG’s Sights for 2013!

by Ann Triebsch

The 2013 Work Plan released October 2, 2012, by the HHS Office of the Inspector General (OIG), demonstrates that even the health care industry’s brand-new electronic health records (EHR) initiative is already under scrutiny for potentially abusive and erroneous practices by some providers.  The Work Plan lists three activities that indicate that the OIG is not planning to let any bad habits (or bad actors) get established as providers get comfortable with their new EHR systems.

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Patient Engagement is Key in Stage 2 Meaningful Use

Stage 2 of Meaningful Use under the Health Information Technology for Economic and Clinical Health Act of 2009 (HITECH Act) requires providers who want the HITECH Act’s EHR incentive payments to ensure that at least some patients are engaged and are actually using their electronic health records (EHRs).  The Final Rule for the Stage 2 criteria call for eligible professionals (EPs), eligible hospitals and critical access hospitals (CAHs) to provide a means for patients to access their health care information online.  EPs must also provide a means for patients to send secure messages electronically, however, patients have to actually use these services in order for providers to meet these new measures for making a Meaningful Use of certified EHRs.

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House Calls for Suspension of EHR Incentive Payments under HITECH Act

Hands on keyboard in circleOn Thursday, October 4, 2012, in a letter to Secretary Sebelius of the United States Department of Health & Human Services (HHS), the United States House GOP called on HHS to suspend incentive payments for the adoption and implementation of electronic health records (EHRs) otherwise authorized under the Health Information Technology for Economic and Clinical Health Act of 2009 (HITECH Act).  The GOP also asked HHS to delay the imposition of penalties on providers who choose not to use EHRs in their practice (such penalties that pursuant to the HITECH Act provisions are to take the form of reductions in Medicare reimbursements in 2015).  Continue reading