From Kelly Sonora from MastersinHealth.com, 10 Things You Need to Know About the Healthcare Stimulus:
Barack Obama’s American Recovery and Reinvestment Act of 2009 was signed on February 17, and is already beginning to filter out funds to hopefully stimulate the economy. One of the principal goals of the package is to reform the health care system while creating jobs and insuring more Americans. Through measures to support the unemployed, integrate cutting-edge information technology systems into medical networks, and insuring more children, the act may in some way affect how you receive health care. Find out how.
- Health care industry set to go tech: One of Obama’s umbrella strategies for reforming health
care and stimulating the economy involves pumping money into health care technology
systems. He hopes to create a health information network for hospitals, rural and urban
clinics, and other health care centers by making all medical records electronic; making existing
medical technologies more accurate and effective; and reducing errors in medical care. This
technology boost to the health care system will, Obama hopes, save money, create jobs, and
improve the standards and delivery of health care and medical information. The Dallas
Business Journal reports that the stimulus package will invest $19 billion for health information
technology.
- The unemployed will still receive health care benefits, at least temporarily: Obama plans to
ease the burden of health care costs for the unemployed and reduce the number of uninsured
Americans by extending Medicaid benefits to the unemployed, at least for a time. Individuals
who get unemployment checks would also be able to receive Medicaid, as would their spouses
and children who are under the age of 19, reported the New York Times in January. States
will receive federal aid to help ease Medicaid costs. In late February 2009, TheState.com
reported that Obama “released $15 billion in economic stimulus Medicaid funds for states” to
disperse.
- Children’s Health Insurance Program Reauthorization Act of 2009: The Senate and House
reformed the Children’s Health Insurance Program under this legislation, which extends
insurance to nearly 4 million more children by reworking the Social Security Act. The program
will help families of low-income children who do not qualify for Medicaid pay for their health
insurance, and states will still be able to set their own income eligibility requirements. The
program is funded by a tax increase on cigarettes.
- Governors hold power over releasing funds: While the federal government has designed and
approved the health care stimulus package, governors are in charge of actually releasing
funds, creating eligibility requirements when appropriate, and overseeing the implementation of
the stimulus plan in their states. In late February, governors like Louisiana’s Bobby Jindal (R),
opposed many parts of the economic plan and may reject at least some of the money that is
coming to their state from the federal government. The New Orleans Times-Picayune reports
on Nola.com that Jindal will most likely accept the Medicaid supplements, but according to
Medical News Today, other governors are begrudging about accepting funds that are meant to
be used in a specific way. Instead, governors like New Hampshire Gov. John Lynch (D) are
arguing for more flexibility in how they disperse the federal funds.
- Federal government helps states fund COBRA for unemployed: The Consolidated Omnibus
Budget Reconciliation Act (COBRA) gives individuals who are laid off, retired, switching
between jobs, or have dependents at the time they stop working the option to continue their
group health benefits for a limited time. Some beneficiaries may have to pay for the group rate
insurance, however, but the U.S. Department of Labor holds that “COBRA generally requires
that group health plans sponsored by employers with 20 or more employees in the prior year
offer employees and their families the opportunity for a temporary extension of health
coverage.” Under Obama’s stimulus plan, the federal government will provide states with
subsidies to help offset the costs of COBRA. They will pay for up to 65% of COBRA
premiums “for eligible workers who are involuntarily terminated,” according to the accounting
firm Amper, Politziner and Mattia. Qualifying workers include those who have been involuntarily
terminated on and after September 1, 2008, and qualifying employers include those who are
subject to COBRA legislation, as well as small employers who are subject to State Continuation
legislation.
- Job training funding for those entering health care industry: In another measure to stimulate
the economy while improving health care standards, Obama plans to increase job training
opportunities for those entering the health care industry. The stimulus budget has allotted
$750,000,000 “for a program of competitive grants for worker training and placement in high
growth and emerging industry sectors,” $500,000,000 of which will go to renewable energy
programs. The rest will be distributed by the Secretary of Labor “giv[ing] priority to projects
that prepare workers for careers in the health care sector.”
- Preventive care takes precedent: In his address to Congress in February, Barack Obama
outlined the promised benefits of his economic stimulus benefits, highlighting the fact that the
health care reform boasts “the largest investment ever in preventive care, because that is one
of the best ways to keep our people healthy and our costs under control.” According to a
report by NPR, this move would also create jobs, at least in the short term, even if it did not
result in sustainable medical research projects, as hoped.
- A contract for accountability: In order to promote accountability in health care reform and to
make sure that all of this funding is actually helping the economy and the health care industry,
Obama’s plan includes a contract between the federal government and the Institute of
Medicine. The stimulus package outlines that the $1.5 million contract will require the Institute
to “produce and submit a report to the Congress and the Secretary [of Health and Human
Services] by not later than June 30, 2009, that includes recommendations on the national
priorities for comparative effectiveness research” that will eventually be subjected to public
commentary and review.
- Health IT dominates in all areas of medical industry: The stimulus package lists several ways in
which new health care information systems and technologies will help the facilitation of
medical care and the industry as a whole. These include the exchange of patient medical
records and a subsequent reduction in wait times at hospitals and health care facilities; the
increase of telemedicine technologies for those living in rural areas and who do not have
access to cutting edge medical resources; “technologies that help reduce medical errors;”
and “technologies that meet the needs of diverse populations.”
- Total health care stimulus cost: $150 billion: The total cost of all these (and more) health
care reforms under the American Recovery and Reinvestment Act of 2009 is $150 billion,
according to the Dallas Business Journal, including $17 billion for Medicare and Medicaid
incentive programs, $2 billion for technology grants, and $19 billion for a health information
technology.