President Obama Signs American Recovery and Reinvestment Act of 2009 Feb. 20, 2009 As you may know, President Barack Obama on Tuesday signed into law the economic stimulus package, the "American Recovery and Reinvestment Act of 2009" (ARRA). This new law contains several investments in health care, including $1 billion in funding for prevention and wellness programs, $10 billion in funding for National Institutes of Health research and $1.1 billion for comparative effectiveness research. The ACC wants to bring to your attention the stimulus plan funds available to assist physicians in adopting health information technology (IT). The law authorizes $20 billion to assist in the development of a robust health IT infrastructure, including $17.2 billion in incentives through Medicare and Medicaid, as well as new grant programs, to assist providers in adopting health IT. Click here for an ACC summary of the health provisions. From 2011-2015, physicians who demonstrate "meaningful use" of electronic health record (EHR) technology and performance during the reporting period of each payment year will be eligible for positive payment updates. Beginning in 2015, physicians who are not considered meaningful users will receive negative Medicare payment updates. Physicians are able to receive incentives equal to 75 percent of their allowable Medicare Part B charges, subject to the following caps: First payment year: $18,000 in 2011 or 2012; $15,000 in 2013; $12,000 in 2014 Second payment year: $12,000 Third payment year: $8,000 Fourth payment year: $4,000 Fifth payment year: $2,000 Penalties for physicians who do not adopt a certified EHR system by 2015 start at -1 percent update in payment. The penalty will grow to -2 percent in 2016 and -3 percent in 2017. Physicians who quality for the health IT incentive will not be eligible for the incentives offered under the CMS e-prescribing program. The e-prescribing incentives run from 2009 to 2013. The law also determines that an initial set of standards will need to be adopted by Dec. 31, 2009, that include implementation specifications and certification criteria. The ACC recommends that members who do not currently use an EHR begin the process of adoption in 2009 and implement a system no later than 2010. in order to receive the maximum bonuses available under the program. Practices interested in implementing EHR systems should be sure that EHR vendors provide a guaranteed upgrade path that ensures their products will meet certification criteria as established by HHS. Including this requirement will also benefit practices interested in purchasing and implementing systems in 2009. The ACC also recommends purchasing a CCHIT-certified EHR. Given the many benefits of using health IT, including reduced administrative cost and medical errors, the ACC highly encourages members to take advantage of the federal funding available from 2011-2015. The funding can significantly offset the cost of adopting this technology. The ACC will provide updates on the program as they become available from HHS. Visit acc.org/healthit for tools and resources to assist in the selection, adoption and implementation of an EHR, or contact ht@acc.org. For more information on the program, see an ACC summary of the law.