Economic Stimulus Package/Health Provisions
On February 13, 2009, the House and Senate approved the conference report to accompany H.R. 1, the American Recovery and Reinvestment Act. President Obama signed the bill into law on February 17, 2009. The $790 billion economic stimulus package includes a number of health care policy provisions. Among other things, the final agreement includes:
- $19 billion to accelerate the adoption of health information technology systems;
- Strengthened federal privacy and security provisions to protect personally-identifiable health information;
- Approximately $87 billion in additional federal matching funds over two years to help states maintain their Medicaid programs in the face of state budget shortfalls;
- $1.1 billion to support comparative effectiveness research;
- $1 billion for a new Prevention and Wellness Fund; and
- Provisions to help unemployed workers maintain health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA) law.
- A provision blocking a fiscal year 2009 reduction in Medicare payments to teaching hospitals related to capital payments for indirect medical education;
- A provision blocking a fiscal year 2009 Medicare payment cut to hospice providers related to a wage index payment add-on;
- Technical corrections to the Medicare, Medicaid, and SCHIP Extension Act of 2007 related to Medicare payments for long-term care hospitals;
- A temporary increase in states’ annual disproportionate share hospital allotments;
- An extension of moratoria on Medicaid regulations for targeted case management, provider taxes, and school-based administration and transportation services through June 30, 2009, and a new moratorium on a Medicaid regulation related to hospital outpatient services through June 30, 2009;
- An extension of Transitional Medical Assistance and the Qualified Individual program; and
- Medicaid prompt payment requirements for nursing facilities and hospitals.
Information on the versions of the measure approved earlier by the House and Senate is available here.
Update: On February 17, 2009, President Obama signed into law H.R. 1, the American Recovery and Reinvestment Act (the “ARRA”). Reed Smith's Health Care Memorandum summarizes the major health policy provisions of the Act.
