An economic stimulus plan that funds a number of health care initiatives was signed into law by President Barack Obama on Feb. 17, 2009.
Here’s an overview of what the plan will spend on health care.
- Health information technology (HIT): The plan sets aside $19 billion for HIT, including $44,000 to $64,000 in rewards for physicians who use HIT. Medicare payment reductions for those who are not “meaningful users” of HIT would begin in 2014.
- Medicaid: The plan includes $87 billion to help states pay for their Medicaid programs. This is welcome news in Pennsylvania, which faces a $2.3 billion budget shortfall and a rising number of people eligible for Medicaid.
- COBRA: The government will subsidize 60 percent of the cost of COBRA for nine months for workers who are laid off. Income limits would apply.
- Research: The National Institutes of Health (NIH) will receive $10 billion for research, while $1.1 billion will be provided for research on the effectiveness of medications and medical devices.
The American Medical Association offers an analysis of the law, as well as other health care reform resources.
The House passed its $819 billion economic stimulus plan 244-188 on Jan. 28, and the Senate passed its $838 billion plan on Feb. 10. A conference committee with legislators from both chambers crafted the final $787 billion bill.