Applied Informatics

Applied Informatics The HITECH Act Unit 3 Lesson 2

Lesson Objectives At the end of this lesson, you will be able to: • Define the HITECH act • List key areas of the HITECH act • Discuss the components of the current HITECH act

What is the HITECH Act • The Health Information Technology for Economic and Clinical Health Act (HITECH Act or "The Act") is part of the American Recovery and Reinvestment Act of 2009 (ARRA). • ARRA contains incentives related to health care information technology in general. • ARRA also contains specific incentives designed to accelerate the adoption of electronic health record (EHR) systems among providers

HITECH Act – Cont’d • The HITECH Act also widens the scope of privacy and security protections available under HIPAA • It increases the potential legal liability for non-compliance • It provides for more enforcement.

Key Areas of HITECH Act • Incentives – Medicare • Eligible professionals can receive up to $44,000 over five years under the Medicare EHR Incentive Program. • There's an additional incentive for eligible professionals who provide services in a Health Professional Shortage Area (HSPA). • To get the maximum incentive payment, Medicare eligible professionals must begin participation by 2012. • For 2015 and later, Medicare eligible professionals, eligible hospitals, and CAHs that do not successfully demonstrate meaningful use will have a payment adjustment in their Medicare reimbursement.

Key Areas of HITECH Act – Cont. • Incentives – Medicaid • The Medicaid EHR Incentive Program is voluntarily offered by individual states • Eligible professionals can receive up to $63,750 over the six years that they choose to participate in the program • There are no payment adjustments under the Medicaid EHR Incentive Program.

Key Areas of the HITECH Act – Cont. • Enforcement • Mandatory penalties will be imposed for "willful neglect." • These penalties can extend up to $250,000, with repeat/uncorrected violations extending up to $1.5 million. • Under certain conditions HIPAA's civil and criminal penalties now extend to business associates.

Key Areas of HITECH Act - Cont. • Notification of Breach • The HITECH Act imposes data breach notification requirements for unauthorized uses and disclosures of "unsecured PHI." • The Act requires that patients be notified of any unsecured breach • If a breach impacts 500 patients or more then HHS must also be notified. • Under certain conditions local media will also need to be notified.

Key Areas of HITECH Act - Cont. • Electronic Health Record Access • The Act provides individuals with a right to obtain their PHI in an electronic format (i.e. ePHI). • An individual can also designate that a third party be the recipient of the ePHI. • The Act provides that only a fee equal to the labor cost can be charged for an electronic request. • Lack of meaningful use may bar incentive payments

Key Areas of HITECH Act - Cont. • Business Associates • The HITECH Act applies certain HIPAA provisions directly to business associates • Under the HITECH Act, business associates are now directly "on the compliance hook" since they are required to comply with the safeguards contained in the Security Rule. • The Act requires business associates to report security breaches to covered entities consistent with the notification requirements. • Business associates and providers will share more joint responsibilities than they have previously

Summary • Defined HITECH Act • Different Areas: • Incentives • Enforcement • Notification of Breach • Electronic Health Record • Business ASsociates

Applied Informatics