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Kennedy-Dingell bill would provide health IT incentives

By Nancy Ferris
Published on April 25, 2007

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A major health reform bill introduced April 25 by two chairmen of congressional health committees would provide incentives for nationwide adoption of e-health records and clinical decision support systems.

The health information technology provisions in the “Medicare for All” bill would save the nation $160 billion a year, according to Sen. Edward Kennedy of Massachusetts and Rep. John Dingell of Michigan, the Democrats who head the health committees of the Senate and the House.

Their measure calls for universal coverage of all Americans through Medicare and the Federal Employees Health Benefits program. People could select their own public or private plans, which would be financed through increased payroll taxes.

The coverage would be phased in over five years, as would incentives for adopting health IT, Kennedy spokeswoman Laura Capps said. She said there is no detailed schedule for implementing EHRs.

Health care costs would be contained by reducing administrative expenses, increasing preventive care and disease management, and extending pay for performance programs, according to the legislation's sponsors.

“Under Medicare for All, health care providers will be rewarded for improving the quality of care they give to patients,” a Kennedy-Dingell press release stated. “One measure of health care quality will be appropriate use of information technology systems that improve care quality and reduce costs.”

The release cited problems with the present health care system, saying, “Over 46 million Americans are uninsured, yet we spend six times more on administrative costs than our economic competitors, while ranking high in medical errors and low in coordination of care for the chronically ill.”

Although employers would pay more taxes for the new system, they no longer would pay health insurance premiums for their employees. The sponsors said that change “will sharply reduce average employer health care expenses.”

Under the bill, Medicaid would continue to provide services to persons with very low incomes and disabilities.










 
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