Bill HR 3458: RHCs Eligibility for Medicare EHR Incentive

A U.S. House bill (HR 3458) has been introduced that would make rural health clinics (RHCs) eligible for Medicare incentive payments under the meaningful use program. This bill would correct an unintentional consequence that made rural health clnics ineligible for Medicare incentive payments that were part of the American Recovery and Reinvestment Act (ARRA) of 2009.

In working with providers in rural areas, REACH is finding that few rural health clinics qualify for Medicaid incentives, which require a clinic to have greater than 30 percent Medicaid patients. This leaves rural health clinics with no incentive dollars to pursue meaningful use of an electronic health record (EHR) system.

Designated rural health clinics use a cost plus billing and do not bill Medicare Part B. Because of this billing structure they inadvertently are not eligible for Medicare EHR incentives. About 80 rural health clinics in Minnesota and 46 in North Dakota are unable to pursue the Medicare incentives.