The America Reinvestment and Recovery Act (ARRA)

20.2 - The America Reinvestment and Recovery Act (ARRA) (Rev. 2803, Issued: 10-28-13, Effective: 09-17-13, Implementation: 09-17-13) The purposes of this Act is to provide guidance with the development of nationwide health information technology infrastructure that allows for the electronic use and exchange of information that: (1) ensures that each patient’s health information is secure and protected, in accordance with applicable law; (2) improves health care quality, reduces medical errors, reduces health disparities, and advances the delivery of patient centered medical care; (3) reduces health care costs resulting from inefficiency, medical errors, inappropriate care, duplicative care, and incomplete information; (4) provides appropriate information to help guide medical decisions at the time and place of care; (5) ensures the inclusion of meaningful public input in such development of such infrastructure; (6) improves the coordination of care and information among hospitals, laboratories, physician offices, and other entities through an effective infrastructure for the secure and authorized exchange of health care information; (7) improves public health activities and facilitates the early identification and rapid response to public health threats and emergencies, including bio terror events and infectious disease outbreaks; (8) facilitates health and clinical research and health care quality; (9) promotes early detection, prevention, and management of chronic diseases; (10) promotes a more effective marketplace, greater competition, greater systems analysis, increased consumer choice, and improved outcomes in health care services; and (11) improves efforts to reduce health disparities The term ‘‘covered entity’’ has the meaning of a health care provider that conducts certain transactions in electronic form, a health care clearinghouse, and a health plan. ARRA extends all requirements applicable to covered entities to their business associates. A business associate as defined by CFR 45, Part 160.103 is, with respect to a covered entity, a person who: • performs, or assists in performing a function or activity involving the disclosure of individually identifiable health information, except as a member of the covered entity’s workforce. Relevant activities include: o claims processing or administration, data analysis, processing or administration, utilization review, quality assurance, billing, benefit management, practice management, and re-pricing; or o provision of legal, actuarial, accounting, consulting, data aggregation, management, administrative, accreditation, or financial services. A covered entity may be a business associate of another covered entity. Therefore, in compliance with ARRA, a business associate of a covered entity must comply with the same requirements as a covered entity.