Stimulus Bill Includes Funding for Several Healthcare Initiatives

The AP (1/29) runs a feature detailing highlights of the $819 billion economic recovery plan drafted by House Democrats and President Barack Obama's economic team.

It includes "$40 billion to subsidize healthcare insurance for the unemployed under the COBRA program or provide healthcare through Medicaid; $87 billion to help states with Medicaid; $20 billion to modernize health information technology systems; $4 billion for preventative care; $1.5 billion for community health centers; $420 million to combat avian flu; $335 million for programs that combat AIDS, sexually transmitted diseases and tuberculosis."

In fact, in a posting on its Health Blog, the Wall Street Journal (1/28, Rubenstein) reported, "You might mistake the economic stimulus package slated for a House for a health-reform bill, if weren't sprinkled with some goodies for other sectors of the economy. Take a look at the changes to Medicaid policy, in particular."

Modern Healthcare (1/28, DoBias) notes the stimulus bill "earmarks more than $100 billion in healthcare spending, including $87 billion more for state Medicaid budgets and another $22 billion to help move doctors and hospitals from paper to computers. The health IT portion of the bill requires that HHS develop a set of initial health information standards by year-end, clearing the way for speedier adoption by the provider community."

Also, the bill could allow physicians to "get up to $65,000 in provider payments under Medicare and Medicaid to help spur the adoption and use of electronic health records. Hospitals would be eligible for up to $2 million in payments. Providers who don't adopt the technology would face financial penalties in 2016."