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HHS Finalizes Disincentives for Information Blocking Rule

July 2, 2024
Faridat Animashaun

The Department of Health and Human Services (HHS) on June 24 finalized a rule that aims to prevent health care providers from information blocking.

The rule implements the HHS Secretary’s authority under Section 4004 of the 21st Century Cures Act. It aims to create a regulatory framework for managing disincentives for health care providers to interfere with the access, exchange, or use of electronic health information.

In the rule, HHS finalized the mechanisms for applying these disincentives to providers in violation of the information blocking prohibition:

  • Medicare Promoting Interoperability Program: hospitals would lose their status as “meaningful users” of electronic health records, which would lead to a cut in Medicare reimbursement.
  • Quality Payment Program: physicians would lose meaningful use status, and their fees under the Merit-based Incentive Payment System would be affected.
  • Medicare Shared Savings Program (MSSP): health care providers in accountable care organizations would be excluded from participating in the MSSP for at least one year.

In January 2024 comments on the proposed rule, the association urged HHS not to finalize the rule as proposed, because the disincentives would be premature, excessive, and not proportional to the underlying violations. Under HHS’ proposed disincentives, the magnitude of the penalty would depend on a hospital’s Medicare volume, instead of the scope of the violations. The association urged HHS instead to scale the disincentives to the frequency and severity of the information blocking conduct.

Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.

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