The massive healthcare reform bill that passed recently has many people – including those who are part of the medical community – concerned but cautiously optimistic about the long-term implications of passing such a landmark piece of social legislation. It is essential for all Americans, but particularly for medical professionals, to understand how the bill will affect health coverage and spending over the next ten years, especially with the current nationwide push to encourage more doctors and hospitals to adopt certified electronic medical record (EMR) software systems.

The projected cost of the bill over the next ten years is estimated to approach $940 million dollars, but the flip side is that it would also reduce the deficit by $143 billion dollars during the same time period, and that number is expected to jump to $1.2 trillion dollars over the subsequent ten years! In addition, the healthcare reform bill would expand coverage to include nearly 30 million Americans who are currently uninsured, mainly via state-based insurance exchanges that will be established by January 1, 2015. Although it may be too early to decide, it seems likely that EMR adoption will increase as these exchanges are established, as they will most likely require quick, easy access to pertinent patient medical information.

To pay for the new plan, the Medicare Payroll Tax will be expanded in 2012 to include unearned income, amounting to a 3.8 percent tax on investment income for families making more than $250,000 per year, or $200,000 for individuals. In addition, insurance companies will be required to pay a 40 percent excise tax on high-end insurance plans starting in 2018 and a 10 percent excise tax will be added to indoor tanning services in 2011.

Some clear benefits of the plan include improvements to Medicare prescription drug payment plans and significant discounts on medication costs for seniors, as well as coverage for children and protection for those with pre-existing conditions. Considering that Medicare and Medicaid are currently offering bonuses of up to $63,750 to help doctors and hospitals who choose to adopt Certified EMR software systems, it seems likely that the use of electronic medical records will experience additional growth thanks to the 2010 healthcare reform bill.

Many physicians and other medical staff members often wonder why consultants typically recommend CCHIT certified electronic medical record (EMR) software. The answer is simple: Not only can certified software help facilities improve patient care systems and increase profits, but it also ensures that they receive efficient, highly reliable recordkeeping systems that will protect patient safety and privacy.

Certified EMRs are also encouraged by a provision in the American Recovery and Reinvestment Act of 2009 (ARRA), which calls for cuts in Medicaid reimbursements to healthcare facilities and clinics that do not choose to adopt certified EMR software systems. In addition, Medicaid and Medicare are offering bonuses of up to $63,750 to assist independent clinics and other healthcare facilities in the adoption of certified EMRs.

Currently, the Department of Health and Human Services (HHS) is in charge of selecting the criteria that separates a qualified EMR software system from one that is not eligible for monetary incentives. Although multiple certification bodies will continue to exist, all of them will use the criteria set forth by the HHS. While the selection of these criteria is currently still ongoing, vendors who were certified in 2008 by the Certification Commission for Health Information Technology (CCHIT) will be “grandfathered in,” according to the Health IT Advisory Committee, which is a group that is responsible for advising the HHS.

Due to time constraints, CCHIT has already moved forward with its new certification efforts, based on initial suggestions from the HIT Advisory Committee, instead of waiting for the federal government to define “meaningful use” requirements for EMRs. Healthcare providers will already have little time to choose and put to use new EMR software systems by the 2011 deadline, which they are required to meet in order to receive the maximum Medicaid and Medicare reimbursements as defined by ARRA.

For now, the consensus seems to be that EMR software should receive certification for reaching the minimum amount of criteria that are set forth by ARRA’s “meaningful use” stipulation, instead of demanding that it meet all of the requirements that have already been set forth by CCHIT’s existing certification. Regardless, the final decision has not been made on the exact requirements for certified EMR software, so reputable consultants are taking the safe route and typically recommend that clients choose CCHIT certified software, which should cover all the bases.

Certified medical software can help doctors increase profit and improve patient care. But how do you know if software is “certified”, and why does it matter?? For one thing, if medical records are going to go digital, it’s essential for state and federal governments to develop sensible, well-defined regulations.

The idea is ostensibly to encourage the adoption of electronic medical record (EMR) software systems that provide highly reliable, efficient recordkeeping, and which also protect patient safety and privacy – all the while eliminating sub-standard systems that could compromise the integrity of healthcare facilities by violating a patient’s right to privacy.

Certified EMR adoption is encouraged in part by provisions in the stimulus law that call for Medicaid penalties – that is, cuts in reimbursements for healthcare facilities that choose not to adopt a certified EMR software system. A recent report from the PricewaterhouseCoopers’ Health Research Institute predicts that these Medicaid penalties could ultimately do more to encourage physicians to adopt certified EMRs than other incentives, including cash for purchasing and implementation.

Medicare and Medicaid are also offering maximum bonuses of $44,000 and $63,750, respectively, to help individual healthcare facilities adopt certified EMRs. The Department of Health and Human Services (HHS) is responsible for choosing the criteria that will separate qualified EMR software systems from those that will not be eligible to receive incentives, and they have already announced that there will be multiple certification bodies, but each one will be required to certify EMRs using criteria specified by the HHS.

Although the development of the exact criteria is still part of an ongoing process, the Health IT Advisory Committee – a group responsible for advising the HHS – has announced that they will ‘grandfather in’ vendors that obtained certification for software systems in 2008 from the Certification Commission for Health Information Technology (CCHIT). Ultimately, it seems that physicians will be able to move ahead with confidence to implement new digital recordkeeping systems – as long as they take the time to ask the tough questions and understand all of the rules before jumping into the game.