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National Association of Health Underwriters - Protecting the Consumer's Future
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Health IT

At Issue

Health Information Technology (Health IT) is one effective method of reducing health care costs while improving the quality of health care too. There are several areas where Health IT improvements could require federal legislative and regulatory action to create national standards, protect patient privacy and ensure federal health program compliance, including the use of electronic medical records and the use of electronic prescribing technology. Electronic systems are believed to reduce costs because they reduce paper transactions and, more importantly, medical errors.

NAHU's Position

NAHU believes that Congress and the Administration should create a health information technology policy that protects consumers, reduces costs, and improves the quality of health care for all Americans. Federal legislation should lead a permanent public-private process to establish standards for system interoperability, product certification and quality measures.

NAHU supports efforts to make all health records electronic with interoperable technology, which would allow all systems to communicate with one another. Individual health records would become as up-to-date as possible. It is essential that Congress passes this legislation before private companies develop systems that are not interoperable.

NAHU supports electronic prescribing as well as efforts to standardize electronic prescribing procedures and further greater physician participation by requiring compliance by Medicare and other public health providers. Currently, only six percent of U.S. physicians own software equipped to prescribe medications online, while the majority of pharmacies can process electronic prescriptions

NAHU also supports federal incentives to encourage the adoption of Health IT improvements by providers, states, communities and business entities.

NAHU's Action

NAHU has partnered with the Health IT NOW coalition in order to promote federal legislation that establishes responsible and effective health IT policies.

Legislative Action

There are two major Health IT bills that have been introduced in Congress have wide bipartisan support; however, they are still awaiting further review in Congressional committees.

Promoting Health Information Technology Act (HR 3800)
  • H.R. 3800 would establish a public-private Partnership for Health Care Improvement to recommend the actions necessary to achieve a nationwide interoperable health IT infrastructure. Standards for the electronic exchange of health information would be adopted.
  • The American Health Information Community would be established to provide advice to the Secretary of HHS and other agencies concerning policies related to health IT.
  • A Health Information Technology Resource Center would be established by the Secretary of HHS.
  • Health information privacy requirements would be extended to an operator of a health information electronic database. Individuals would have the right to inspect and obtain a copy of their protected health information stored in electronic format.
  • Health care quality measures concerning the quality and efficiency of health care that patients receive would be developed and used by the Secretary of HHS.

  • The Secretary of HHS would award grants for:
  • The purchase of qualified health IT systems
  • The implementation of regional or local health information plans
  • The development of academic curricula integrating qualified health IT systems in the clinical education of health professionals
  • Current Status: Referred to the House Committee on Energy and Commerce on October 10, 2007

    Wired for Health Care Quality Act (S 1693)
  • S. 1693 is very similar to the House bill, and would enhance the adoption of a nationwide interoperable health IT system, as well as improve the quality and reduce the costs of health care.
  • However, S. 1693 would also establish the Office of the National Coordinator of Health Information Technology. This office would be required to ensure that health IT initiatives are coordinated across the Department of HHS, enhance the use of health IT, develop a strategic plan for implementing a nationwide interoperable health IT infrastructure, and assess the impact of health IT in communities with health disparities.
  • Federal agencies would be prohibited from expending federal funds for the purchase of new health IT that is not consistent with standards adopted under S. 1693.
  • The Secretary of HHS would be required to contract with private entities to serve as Quality Reporting Organizations to store federal health data and develop reports to improve the quality and efficiency of health care and advanced health care research, enhance the education and awareness of consumers for evaluating health care services, and provide the public with reports on provider and supplier performance.
  • Other Action
    While the U.S. awaits federal legislation to promote the use of Health IT, many organizations are going forward without such legislation.
    Some examples of recent private efforts to advance Health IT include:
  • Ford Motor Corporation purchased electronic prescribing software for physicians in its employee health network and claims that it saved $3 million in 2007.
  • Many medical students are being taught how to utilize e-prescribing software.
  • New York City Mayor Bloomberg has advocated for and received a public investment of $60 million to introduce an electronic health record software system to doctors. While only two hundred doctors who serve 200,000 patients have agreed to utilize the system, the city hopes that 1,000 doctors serving one million patients will utilize the system by the end of the year. Doctors can receive assistance for paying for and using the software system if they are eligible: Marc Santora reports that "Any doctor who has a practice where 30 percent of the patients are either uninsured or on Medicaid is eligible for the assistance, but the city is also asking that they provide their own computers, and contribute $4,000 to the Fund for Public Health in New York for continuing technical support" (New York Times 26 Feb 2008). The technology used will be open-source material that is not copyrighted, which would allow as many companies as possible to employ this system.
  • For questions on this issue, please contact the Government Relations Department.