ARRA Economic Stimulus Package
The American Recovery and Reinvestment Act of 2009 (ARRA) is an economic stimulus package enacted by the 111th United States Congress and signed into law by President Barack Obama on February 17, 2009. The Act of Congress was based largely on proposals made by President Obama and is intended to provide a stimulus to the US economy in the wake of the economic downturn. The measures are nominally worth $787 billion. ARRA includes federal tax relief, expansion of unemployment benefits and other social welfare provisions and domestic spending in education, health care, and infrastructure, including the energy sector. ARRA also includes numerous non-economic recovery related items that were either part of longer-term plans (e.g. a study of the effectiveness of medical treatments) or desired by Congress (e.g. a limitation on executive compensation in federally aided banks added by Senator Dodd and Rep. Frank). The government action is much larger than the Economic Stimulus Act of 2008 which consisted primarily of tax rebate checks.
The bill was first approved by the House of Representatives and then by the Senate. Congressional negotiators announced on February 11 that they had completed the Conference Report of the bill. The Conference Report with final handwritten provisions was made available to the public on February 13. On that day, the Conference Report was voted on and passed as Roll Call Vote 70 by the House, 246-183. The vote was largely along party lines with all 246 Yea votes given by Democrats and the Nay vote split between 176 Republicans and 7 Democrats. No Republicans in the House voted for the bill. Later that day, the Senate passed the bill, 60-38, with all Democrats and Independents voting for the bill along with three Republicans. The remaining 38 Republican senators voted against the bill. The bill was signed into law on February 17 by President Obama at an economic forum he was hosting in Denver.
- $86.6 billion for Medicaid
- $24.7 billion to provide a 65 percent subsidy of health care insurance premiums for the unemployed under the COBRA program
- $19 billion for Health Information Technology (HIT)
- $10 billion for health research and construction of National Institutes of Health facilities
- $1.3 billion for medical care for service members and their families (military)
- $1 billion for prevention and wellness
- $1 billion for the Veterans Health Administration
- $2 billion for Community Health Centers
- $1.1 billion to research the effectiveness of certain healthcare treatments
- $500 million to train healthcare personnel
- $500 million for healthcare services on Indian Reservation
Congressional Budget Office Report
A February 4, 2009, report by the Congressional Budget Office (CBO) said that while the stimulus would increase economic output and employment in the short run, the GDP would, by 2019, have an estimated net decrease between 0.1% and 0.3% (as compared to the CBO estimated baseline).
The CBO estimated that enacting the bill would increase federal budget deficits by $185 billion over the remaining months of fiscal year 2009, by $399 billion in 2010, by $134 billion in 2011, and by $787 billion over the 2009-2019 period.
In a February 11 letter, CBO Director Douglas Elmendorf noted that there was disagreement among economists about the effectiveness of the stimulus, with some skeptical of any significant effects while others expecting very large effects. Elmendor said the CBO expected short term increases in GDP and employment. In the long term, the CBO expects the legislation to reduce output slightly by increasing the nation’s debt and crowinding out private investment, but noted that other factors, such as improvements to roads and highways and increased spending for basic research and education may offset the decrease in output and that crowding out was a not an issue in the short term because private investment was already decreasing in response to decreased demand.
An updated report of the budget and economic outlook by the CBO in March 2009 showed that taxpapers will pay $356 billion, $167 billion more than the original figure of $189 billion in January.
The CBO estimated that an increase in the GDP of between 1.4 percent and 3.8 percent by the end of 2009, between 1.1 percent and 3.3 percent by the end of 2010, between 0.4 percent and 1.3 percent by the end of 2011, and a decrease of between zero and 0.2 percent beyond 2014. The impact to employment would be an increase of 0.8 million to 2.3 million by the end of 2009, an increase of 1.2 million to 3.6 million by the end of 2010, an increase of 0.6 million to 1.9 million by the end of 2011, and declining increases in subsequent years as the U.S. labor market reaches nearly full employment, but never negative.Decreases in GDP in 2014 and beyond is accounted for by a decrease in worker productivity caused by lower wages rather than lower employment.
More Resources on Answers Media Network
Health IT Answers
www.HealthITAnswers.net – This site aggregates all content and posts from our media sites. The site also includes our popular health IT events calendar, product store, and resource downloads.
www.HITECHAnswers.net – Content focuses on the Health Information Technology for Economic and Clinical Health (HITECH) Act which included the CMS EHR Incentive programs and now the QPP and PI. The site also focuses on security of health systems discussing, privacy, cybersecurity, and HIPAA. Our readers are healthcare providers adopting health information technology, consultants and EHR vendors in this health IT space.
www.HealthDataAnswers.net – Previously HIEAnswers.net, content focuses on Health Information Exchange a key part of current national policy to make health records interoperable. Also focusing on health data at large using analytics, precision medicine, clinical communication, and AI. Our readers are healthcare providers, EHR and HIE vendors, HISP vendors, HIE organizations, and consultants in the health IT space.
www.RCMAnswers.net – Content focuses on healthcare revenue cycle management highlighting the moving from fee to value based care and reimbursement. Articles and resources discuss medical billing, healthcare delivery, and payment matters. Our readers are healthcare providers, payers, vendors and consultants in this healthcare financial space.
www.HealthcareNOWradio.com – HealthcareNOW Radio is an Internet radio station operated and produced as part of Answers Media Network. The station streams programming 24/7. The station offers interviews, and commentary from industry leaders in healthcare and health information technology, as well as originally produced programming hosted by industry leaders. The station currently averages over 30,000 listeners per month; our SoundCloud channel of archived show episodes averages over 5,000 plays/downloads per month.
OUR STREAMING RADIO STATION
Our Podcast Channel
Miss any episodes of your favorite HealthcareNOW Radio shows? Find them all on our SoundCloud Channel. Play or Download Here
Get Our eNews Digests
EHR Incentive Program News
More Top Headlines
- ABCs of VBC – Final Rule for 2020
- From GPS and F35 Fighters to Next Generation OCR
- ESRD and DMEPOS CY 2020 Final Rule
- Driving Transformation through Academic Medical Centers
- Federal Requirements on Interoperability Pose Major Challenges and Opportunities
- See all our sites aggregated content on HealthITAnswers.net