The economic stimulus act, officially known as the American Recovery and Reinvestment Act of 2009, was passed on February 17, 2009. This broad based legislation allocates $787 billion of your taxpayer dollars towards improving the economy. $149 billion of that sum will be spent improving our healthcare system. Here's what you need to know about health spending and the economic stimulus act:
Medicaid - $87 Billion
The Medicaid program is the big winner of this stimulus act, receiving $87 of the $149 billion allocated towards healthcare. Most of this money will go towards temporarily increasing federal spending on Medicaid from October 1, 2008 through December 31, 2010. This will help states keep their Medicaid programs operational and continue benefits for millions of Americans who rely on Medicaid to obtain the care they need.
COBRA - $25 Billion
The Act also allocates $25 billion towards subsidizing COBRA continuation coverage. Americans workers who are laid off anytime between September 1, 2008 and December 31, 2009 are eligible for a COBRA premium subsidy that will cover 65% of their premium. This is a tremendous boon for American workers who have been laid off and can't afford to pay their entire COBRA premium while they are between jobs.
Please note that only those who lost their jobs involuntarily are eligible - if you resign, you cannot get the subsidy. Also, your household income must be less than $125,000 per year if you are single, or $250,000 per year for families.
Health Information Technology - $19.2 Billion
$19.2 billion has been allocated to fund efforts to develop standards around which a nationalized health IT system can grow. It will also provide direct financial incentives to providers receiving payments from Medicare and Medicaid if they adopt electronic medical records and health IT systems.
Scientific Research, Community Health Centers, and other spending - $17.8 Billion
The remaining $17.8 billion in health dollars is spread among several different health-related endeavors. For example, the National Institutes of Health will receive $10 billion for continued research toward medical advances. Additionally, $2 billion will go to build new Community Health Centers and renovate existing Centers. Another $1.1 billion is slated for comparative effectiveness research, which experts hope will improve patient outcomes and perhaps contain health spending.
Sources:
Recovery.gov. Accessed March 2009. Kaiser Commission on Medicaid and the Uninsured. AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA): MEDICAID AND HEALTH CARE PROVISIONS. Published March 2009.
