House panel hearing focuses on health IT privacy, cost concerns

Lawmakers, patient-privacy and health care advocates, and information technology experts on Tuesday "debated ... how Congress can strike a balance between accelerating the adoption of a nationwide system of electronic medical records while protecting patient privacy," CongressDaily reports (Noyes, CongressDaily, 6/4).

The House Energy and Commerce Subcommittee on Health hearing focused on a health IT bill drafted by Committee Chair John Dingell (D-Mich.) and ranking member Joe Barton (R-Texas). The bill would require the federal government to set software and hardware standards for health programs, such as Medicare, and assist providers in purchasing and establishing health IT systems (Wayne, CQ Today, 6/4).

Subcommittee Chair Frank Pallone (D-N.J.) said that a national health IT system would save the U.S. up to $170 billion annually, as well as improve health care quality, increase efficiency and reduce medical errors. Rep. Henry Waxman (D-Calif.) said that surveys have shown consumers lack confidence in health data privacy and security, and creating a nationwide health IT network could increase those concerns. Several privacy advocates called on lawmakers to adopt a clear definition of health privacy to be used in the legislation (CongressDaily, 6/4). According to privacy advocates, there is an industry based on buying and selling medical records that could be harmed by strong privacy protections. Deborah Peel, founder of Patient Privacy Rights, said, "Data mining and sale of health information is rampant." Industry groups have said strong privacy language could prevent them from easily communicating with patients and each other.

Meanwhile, physicians at the hearing discussed concerns about the cost of implementing health IT. Steven Stack, a physician representing the American Medical Association, at the hearing said that "it is truly essential" that Congress provide funds for physicians to purchase health IT equipment, especially those in small practices and rural areas. The draft bill would authorize grants and loans to providers, but it would not provide actual funds, CQ Today reports. Pallone, a co-sponsor of the House draft bill, said, "While some providers have already begun to make the investment in (health IT), far more have not because of serious financial and operational barriers" (CQ Today, 6/4).

GOP Health IT Bill

Also on Tuesday, Republican Reps. Dave Camp (Mich.) and Sam Johnson (Texas) introduced legislation (HR 6179) similar to the draft bill that they said would provide a "workable solution that utilizes public-private partnerships and tax incentives to rapidly adopt health IT while protecting patient privacy," CongressDaily reports.

The bill would allow physicians who purchase health IT equipment to deduct a larger portion of the business expense more quickly. The measure also would a eliminate a 2013 sunset that HHS placed on the practice of hospitals providing physicians with electronic health record software, according to CongressDaily. In addition, the legislation would require HHS to establish technology and privacy standards for EHRs and mandate an HHS study to indentify strengths and weaknesses in current federal security and confidentiality standards (CongressDaily, 6/4).