HHS to Delay Stage 2 Meaningful Use Requirements

Last week, the U.S. Department of Health and Human Services (HHS) announced plans to offer health care providers additional time to meet Stage 2 Meaningful Use objectives for Medicare and Medicaid Electronic Medical Record (EMR) Incentive Programs. In a continued effort to incentivize providers to implement health care information technology (IT), Secretary Kathleen Sebelius stated that HHS intends to delay Stage 2, allowing providers to adopt health IT in 2011 without meeting the new requirements until 2014.

“The extension of Stage 2 implementation will affect only those providers who attest to Stage 1 in 2011,” said Jennifer R. Breuer, partner and the vice chair of the Health Law Practice Group at Drinker Biddle & Reath LLP (Chicago). “HHS’ announcement did not include any extension of Stage 2 for those providers who begin participation in 2012. Therefore, providers attesting to Stage 1 Meaningful Use in 2012 will begin Stage 2 in 2014 as planned.”

Beginning in 2015, Medicare eligible providers who fail to successfully demonstrate Meaningful Use will receive a downward adjustment to their Medicare reimbursement. The adjustment starts at a one percent reduction and increases each year Meaningful Use is not successfully demonstrated, with a maximum reduction of five percent.

“A delay in Stage 2 will allow vendors sufficient time to develop Electronic Health Record (EHR) technologies that comply with the Stage 2 certification requirements,” said Jeffrey T. Ganiban, a partner in Drinker Biddle’s Health Law Practice Group (Washington) who advises his clients on matters related to Meaningful Use, interoperability, and the development and implementation of Health Information Exchanges and ambulatory EMR programs.

He adds, “HHS believes such a delay will also give providers time to certify and implement the necessary software to meet the challenges of Stage 2.”

Ms. Breuer and Mr. Ganiban are available for interviews and to author articles on the impact that the delay of Stage 2 will have on hospitals, physician groups and other medical practitioners. [12/09/2011]