ARRA Basics

It's difficult to have a conversation about the healthcare industry these days without the terms "ARRA" and "Meaningful Use" coming up. But what exactly do they mean, and how will they affect you as a provider? Below, we've addressed some of the most common questions about ARRA incentive payments, meaningful use, and certified EHR technology.

What does ARRA stand for?

ARRA stands for the American Recovery and Reinvestment Act of 2009, an economic stimulus package enacted by the U.S. Congress and signed into law in February of 2009. ARRA is also sometimes referred to as "the Stimulus bill."

How does ARRA apply to the healthcare industry?

ARRA includes provisions for education, energy research, and several areas of social welfare, among other things, but almost 20% of the proposed funds have been allocated to healthcare. Those funds will go toward improvements in a variety of areas within the healthcare industry, including Medicaid, unemployment coverage, health research, and health information technology (HIT).

How does ARRA apply to you as a provider?

One of the aims of ARRA (more specifically, of the Health Information Technology for Economic and Clinical Health [HITECH] Act, which is a part of ARRA) is to encourage the adoption of certified Electronic Health Record (EHR) systems. To do so, ARRA promises government incentive payments to Medicare and/or Medicaid providers who adopt and make "meaningful use" of certified EHRs.

What is Meaningful Use (MU)?

"Meaningful use" basically refers to how extensively a certified EHR is used by a particular provider. You could, for example, have a certified EHR but choose not to use some of the system’s features and thus not make "meaningful use" of the system. The Centers for Medicare and Medicaid Services (CMS) is responsible for defining the term meaningful use, and they will do so in 3 stages. Stage 1, which takes effect in 2011, contains 25 MU objectives/measures: 15 are considered "core objectives" and are required. Of the remaining 10 "menu set objectives," each Eligible Provider (EP) must choose 5 in order to be eligible for stimulus payments (for a total of 20 MU objectives overall). Stages 2 and 3 will take effect in coming years and will expand upon the Stage 1 criteria.

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