Economic Stimulus Package Special Edition

Introduction of the American Recovery and Reinvestment Act

1. Changes to HIPAA

2. Funding under Health Information Technology Grants

3. Extension of COBRA Benefits

4. Tax Relief Measures for Businesses

Introduction of the American Recovery and Reinvestment Act

 On Tuesday, February 17, President Obama signed the Economic Stimulus Package into law.  The American Recovery and Reinvestment Act (Public Law 111-5) includes several provisions of particular interest to ambulance service providers.  First, the package establishes privacy protections for electronic health information and applies the privacy protections under the Health Insurance Portability and Accountability Act (HIPAA) to business associates of covered entities.  Second, it provides assistance to health care providers including ambulance service providers to invest in health information technology.  Third, it extends COBRA benefits for employees who are involuntarily terminated.  Fourth, the new law includes several tax relief measures for businesses.  This special edition of the AAA E-Update provides information on these four key issues for ambulance service providers.

 The details of the information provided in this Economic Stimulus Package Special Edition of the E-Update can be accessed on a new Economic Stimulus Package webpage in the Members Only section of the AAA website.  To access the page click on:  www.the-aaa.org/members_only/stimulus_package_web09.htm  Once in the Members Only section, select "Reimbursement Issues" from the scroll down menu under "Industry Issues".  Then simply click on "Stimulus Package Information Page" at the top of the list of issues.

1. Changes to HIPAA

By Brian S. Werfel, Esq.

The American Recovery and Reinvestment Act contains several important modifications to the HIPAA Privacy Rule and Security Rule.  Covered entities will need to take steps to ensure that they comply with these new requirements.  The legislation also imposed new requirements for business associates, and increased penalties for non-compliance.

On February 26, the AAA issued a Member Advisory with a comprehensive summary by Brian Werfel of the changes to HIPAA.  To obtain a copy of the Member Advisory, please access the "Advisory on Changes to HIPAA by Brian Werfel " on the Economic Stimulus Package Webpage in the Members Only Section of the AAA website.  Brian Werfel and David Werfel are the Medicare consultants for the AAA.

2. Funding under Health Information Technology Grants

By Patton Boggs

The American Recovery and Reinvestment Act contains $19 billion for health information technology.  Ambulance service providers are eligible for funding and one grant program in particular that provides $2 billion to help health care providers adopt and implement information technology for the exchange and use of health information.  The Office of the National Coordinator of Health Information Technology (ONCHIT) will establish and oversee the program.  The specifics about how to apply for grants have not yet been released.

For more information on the ONCHIT program for health care providers and all the Health IT programs, please access the "Stimulus Package Analysis by Patton Boggs, Health IT (Page 88)" on the Economic Stimulus Package Webpage in the Members Only Section of the AAA website .  Patton Boggs is the government affairs advocacy firm for the AAA.

3. Extension of COBRA Benefits

The American Recovery and Reinvestment Act makes employees involuntarily terminated  between September 1, 2008 and December 31, 2009, eligible for a 65% subsidy of their premiums on a group health plan maintained under the Consolidated Omnibus Budget Reconciliation Act (COBRA).  The terminated employee covers 35% of the premium but the employer initially covers the 65% subsidy which is then recouped by the employer through tax credits.  Health plan administrators must notify immediately those employees terminated since October 1, 2008 about eligibility for continuing health coverage with the premium reduction.

 More detailed information on changes to COBRA benefits can also be accessed through the Department of Labor fact sheet.  To obtain a copy of the fact sheet, please access the "Fact Sheet: COBRA Premium Reduction" on the Economic Stimulus Package Webpage in the Members Only Section of the AAA website .

4. Tax Relief Measures for Businesses

By Patton Boggs

The American Recovery and Reinvestment Act includes approximately $287 billion in tax relief for businesses, individuals and state and local governments.  Several provisions are of interest to ambulance service providers including extension of the carry back period for operating losses, faster depreciation of capital expenditures and the expansion of the Work Opportunity Tax Credit to include unemployed veterans or disconnected youth.  Many of the provisions are continuations of previous temporary tax relief provisions.

 For detailed information on the business-related tax provisions, please access the "Memo on Business-Related Tax Provisions from Patton Boggs" on the Economic Stimulus Package Webpage in the Members Only Section of the AAA website . .   Patton Boggs is the government affairs advocacy firm for the AAA.