Maryland enacts health IT incentive law

Maryland has followed the federal government's lead by enacting its own legislation aimed at encouraging physicians to adopt electronic health record systems.

Gov. Martin O'Malley on May 19 signed into law the bill, "Electronic Health Records -- Regulation and Reimbursement." It is meant to complement the most recent federal stimulus package, which provides a net of about $20 billion in Medicare and Medicaid bonuses to physicians, hospitals and others who adopt certified EHRs.

The Maryland law includes a requirement for the state to develop a statewide health information exchange by Oct. 1. It also requires the Maryland Health Care Commission to adopt regulations by Sept. 1, 2011, that require payers to provide incentives to physicians to promote EHR adoption and use. These incentives may come in the form of increased payment for specific services; lump sum payments; gain-sharing arrangements; rewards for quality and efficiency; in-kind payments; and other services to which a monetary value can be assigned.

But the Maryland statute also allows for penalties, in the form of reduced payments by state-regulated payers, for physicians who are not using certified EHRs by Jan. 1, 2015.

While supportive of the actions taken by Congress and the Obama administration, Maryland lawmakers said they wanted to go a step further to ensure the state plays its own part in improving the system. "This advance in health information technology is a giant step in creating a safer, more efficient health care system that reduces costs for all Maryland families," O'Malley said after signing the legislation into law.

Maryland also is one of four states that was selected for a five-year Medicare demonstration project to help primary care physicians adopt EHRs.

The federal stimulus act requires the Dept. of Health and Human Services to develop, by Dec. 31, an initial set of standards, implementation specifications and certification criteria for EHR system adoption. It also authorizes the department to provide competitive grants to states for implementation loans to health care entities.