House Republicans, in an effort to cut back on government spending, are looking to cut incentive payments for the meaningful use of electronic health records to physicians and hospitals as a way to save money.

The proposed Spending Reduction Act of 2011, H.R. 408, also takes the broader step in de-authorizing any appropriations that would be used to implement the Affordable Care Act and its companion law, the Health Care and Education Reconciliation Act.

House Oversight & Government Reform Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending Chairman Jim Jordan, R-Ohio, introduced the bill Jan. 24 with 24 Republican co-sponsors, a third of whom are freshmen. No Democrats are among the initial co-sponsors.

The House previously had passed a bill repealing the health care reform law, but with the expectation that repeal is not likely to go much further than a vote in the Senate, the House will now try to block the law by denying the funding needed for implementation. House Republicans also have vowed to bring forward numerous bills to cut government spending and reduce the federal budget deficit.

The American Recovery and Reinvestment Act of 2009 put aside more than $20 billion to help spur the adoption of electronic health records through Medicare or Medicaid payments to qualifying physicians and hospitals demonstrating meaningful use of EHRs (Also see "Adoption Of E-Health Records Gets Stimulus Of Medicare Rewards, Penalties" - Pink Sheet, 2 March, 2009.).

The EHR program is already underway, with requirements for the first stage of meaningful use finalized. Physicians and hospitals meeting stage 1 meaningful use criteria are eligible for incentive payments beginning this year. The stimulus package also includes penalties for those who do not demonstrate meaningful use.

The HHS Office of the National Coordinator for Health Information Technology is now working on developing criteria for the second stage of meaningful use (Also see "EHR Meaningful Use Could See Optional Items Become Requirements In Stage 2" - Pink Sheet, 14 January, 2011.).

"We realize that the Spending Reduction Act represents a principled stand against government spending, but we would encourage members of Congress to not use the HITECH Act or any of its provisions as a target, as that will only create further uncertainty in the health care sector," eHealth Initiative CEO Jennifer Corvich Bordenick said in a statement. "Any attempt to repeal funding for health information technology would have severely negative effects on public and private progress now and in coming years." eHI noted that efforts to expand health IT have had bipartisan support.

Electronic health records are seen as a key part of reforming the health care system. They are expected to help doctors operate practices more efficiently and improve the quality of care delivered by providing physicians with key information at the point of care. EHRs also have the potential to facilitate medical research through the data that will be exchanged, providing information to help with things such as post-market surveillance of drugs and comparative effectiveness research.

-Gregory Twachtman (g.twachtman@elsevier.com)

Health IT Meaningful Use Incentives Could Get Axe As House GOP Looks To Cut Spending

More from Archive

More from Pink Sheet