Health Care Innovation and Marketplace Technologies Act of 2012 - Amends the Internal Revenue Code to allow a medical care provider to deduct from gross income the amount paid or incurred for qualified health information technology placed in service during the taxable year.
Amends the Small Business Act to authorize the Administrator of the Small Business Administration (SBA) to guarantee up to 90% of the amount of a loan, up to specified loan amounts, to a small business health professional to be used for the acquisition and installation of health information technology for the professional's medical practice.
Amends the Public Health Service Act to require the Secretary of Health and Human Services (HHS), acting through the National Coordinator for Health Information Technology, to award grants for the development of an effective product, process, or structure that enhances the use, particularly by patients, of health information technology.
Requires the Secretary, acting through the National Coordinator, to award prizes for development in areas of health information technology that are not adequately addressed by certified electronic health records (EHR) technologies and the use of such technologies.
Amends the Federal Food, Drug, and Cosmetic Act to establish the Office of Wireless Health Technology.
Requires the Health Information Technology Research Center to provide support for mobile health software application technology.
Authorizes the National Coordinator to award grants for training health care workers in health information technology.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6626 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 6626
To foster further innovation and entrepreneurship in the health
information technology sector.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 3, 2012
Mr. Honda introduced the following bill; which was referred to the
Committee on Energy and Commerce, and in addition to the Committees on
Ways and Means and Small Business, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To foster further innovation and entrepreneurship in the health
information technology sector.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Health Care Innovation and
Marketplace Technologies Act of 2012''.
SEC. 2. HEALTH INFORMATION TECHNOLOGY PLACED IN SERVICE BY MEDICAL CARE
PROVIDER.
(a) In General.--Part VI of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by adding at the end the
following:
``SEC. 200. HEALTH IT PLACED IN SERVICE BY MEDICAL CARE PROVIDER.
``(a) In General.--In the case of a medical care provider, there
shall be allowed as a deduction an amount equal to the amount paid or
incurred by the medical care provider for qualified health information
technology placed in service by the provider during the taxable year.
``(b) Limitation.--The amount allowed as a deduction to a medical
care provider by subsection (a) for a taxable year shall not exceed
$250,000.
``(c) Definitions.--For purposes of this section--
``(1) Medical care provider.--The term `medical care
provider' means--
``(A) a provider of services (as defined in section
1861(u) of the Social Security Act (42 U.S.C.
1395x(u)),
``(B) a provider of medical or health services (as
defined in section 1861(s) of the Social Security Act
(42 U.S.C. 1395x(s)), and
``(C) any other person who furnishes, bills, or is
paid for health care in the normal course of business.
``(2) Qualified health information technology.--The term
`qualified health information technology' means the application
of information processing involving both computer hardware and
software that deals with the storage, retrieval, sharing, and
use of health care information, data, and knowledge for
communication and decisionmaking. Such term does not include
certified EHR technology.
``(d) Special Rules.--
``(1) Pass-thru entities.--In the case of a partnership or
S corporation, this section shall be applied at the entity
level and at the partner or similar level.
``(2) Coordination with other deductions.--Any amount taken
into account under subsection (a) shall not be allowed as a
deduction under any other section of this chapter.
``(e) Termination.--This section shall not apply to amounts paid or
incurred after December 31, 2017.''.
(b) Clerical Amendment.--The table of sections for part VI of
subchapter B of chapter 1 of such Code is amended by adding at the end
the following new item:
``Sec. 200. Health IT placed in service by medical care provider.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2012.
SEC. 3. SMALL BUSINESS HEALTH INFORMATION TECHNOLOGY FINANCING PROGRAM.
The Small Business Act (15 U.S.C. 631 et seq.) is amended by
redesignating section 45 as section 46 and by inserting the following
new section after section 44:
``SEC. 45. LOAN GUARANTEES FOR HEALTH INFORMATION TECHNOLOGY.
``(a) Definitions.--As used in this section:
``(1) The term `health information technology' means
computer hardware, software, services, and related technology
that is purchased by an eligible professional to aid in the
provision of health care in a health care setting and that
provides for--
``(A) enhancement of continuity of care for
patients through electronic storage, transmission, and
exchange of relevant personal health data and
information, such that this information is accessible
at the times and places where clinical decisions will
be or are likely to be made;
``(B) enhancement of communication between patients
and health care providers;
``(C) improvement of quality measurement by
eligible professionals enabling them to collect, store,
measure, and report on the processes and outcomes of
individual and population performance and quality of
care;
``(D) improvement of evidence-based decision
support;
``(E) enhancement of consumer and patient
empowerment; or
``(F) services that assist with workflow redesign,
training, system configuration, human change management
and other similar services focused on getting the best
value from existing technology that has already been
purchased.
Such term shall not include information technology whose sole
use is financial management, maintenance of inventory of basic
supplies, or appointment scheduling.
``(2) The term `eligible professional' means any of the
following:
``(A) A physician (as defined in section 1861(r) of
the Social Security Act (42 U.S.C. 1395x(r))).
``(B) A practitioner described in section
1842(b)(18)(C) of that Act.
``(C) A physical or occupational therapist or a
qualified speech-language pathologist.
``(D) A qualified audiologist (as defined in
section 1861(ll)(3)(B)) of that Act.
``(E) A State-licensed pharmacist.
``(F) A State-licensed, a State-certified, or a
nationally accredited home health care provider.
``(3) The term `qualified eligible professional' means an
eligible professional whose office can be classified as a small
business concern by the Administrator for purposes of this Act
under size standards established under section 3 of this Act.
``(b) Loan Guarantees for Qualified Eligible Professionals.--
``(1) In general.--Subject to paragraph (2), the
Administrator may guarantee up to 90 percent of the amount of a
loan made to a qualified eligible professional to be used for
the acquisition of health information technology for use in
such eligible professional's medical practice and for the costs
associated with the installation of such technology. Except as
otherwise provided in this section, the terms and conditions
that apply to loans made under section 7(a) of this Act shall
apply to loan guarantees made under this section.
``(2) Limitations on guarantee amounts.--The maximum amount
of loan principal guaranteed under this subsection may not
exceed--
``(A) $250,000 with respect to any single qualified
eligible professional; and
``(B) $500,000 with respect to a single group of
affiliated qualified eligible professionals.
``(c) Fees.--(1) The Administrator may impose a guarantee fee on
the borrower for the purpose of reducing the cost (as defined in
section 502(5) of the Federal Credit Reform Act of 1990) of the
guarantee to zero in an amount not to exceed 2 percent of the total
guaranteed portion of any loan guaranteed under this section. The
Administrator may also impose annual servicing fees on lenders not to
exceed 0.5 percent of the outstanding balance of the guarantees on
lenders' books.
``(2) No service fees, processing fees, origination fees,
application fees, points, brokerage fees, bonus points, or
other fees may be charged to a loan applicant or recipient by a
lender in the case of a loan guaranteed under this section.
``(d) Deferral Period.--Loans guaranteed under this section shall
carry a deferral period of not less than 1 year and not more than 3
years. The Administrator shall have the authority to subsidize interest
during the deferral period.
``(e) Effective Date.--No loan may be guaranteed under this section
after the date that is 6 months after the date of enactment of this
section.
``(f) Sunset.--No loan may be guaranteed under this section after
the date that is 10 years after the date that is 6 months after the
date of enactment of this section.
``(g) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary for the cost (as defined in
section 502(5) of the Federal Credit Reform Act of 1990) of
guaranteeing $25,000,000 in loans under this section. The Administrator
shall determine such program cost separately and distinctly from other
programs operated by the Administrator.''.
SEC. 4. CHALLENGE GRANT PROGRAM; DISRUPTIVE TECHNOLOGIES PRIZE PROGRAM.
(a) In General.--Subtitle B of title XXX of the Public Health
Service Act (42 U.S.C. 300jj-31 et. seq.) is amended--
(1) by redesignating sections 3017 and 3018 as sections
3019 and 3020, respectively; and
(2) by inserting after section 3016 the following new
sections:
``SEC. 3017. CHALLENGE GRANT PROGRAM.
``(a) In General.--Subject to the availability of appropriations,
the Secretary, acting through the National Coordinator, shall award
competitive grants to eligible entities to carry out the activities
described in subsection (d).
``(b) Eligible Entity Defined.--In this section, the term `eligible
entity' means any individual or entity, except for an entity that--
``(1) has 500 or more employees; and
``(2) has an annual revenue of $7,000,000 or more.
``(c) Application.--An eligible entity seeking a grant under this
section shall submit an application to the National Coordinator at such
time, in such manner, and containing such information as the National
Coordinator may require, including a description of the product,
process, or structure described in subsection (d) for which the entity
intends to use the grant.
``(d) Uses of Funds.--An eligible entity that receives a grant
under this section shall use such funds to develop an effective
product, process, or structure that enhances the use, particularly by
patients, of health information technology, by--
``(1) integrating more than one aspect of health
information;
``(2) performing a medical consultation using technology;
``(3) providing health information to physicians or
patients;
``(4) allowing better coordination during the delivery and
follow-up after the delivery of health care; or
``(5) addressing any of the three areas that the Commission
established under section 3018(e)(1) has identified pursuant to
its duties under section 3018(e)(2)(A).
``(e) Prohibited Use of Funds.--An eligible entity that receives a
grant under this section may not use such grant to develop a product,
process, or structure that meets only the requirements that are
necessary to be a certified EHR technology.
``(f) Grant Amount.--A grant awarded under this section may not be
greater than $75,000.
``(g) Report.--Not later than one year after the date of receipt of
a grant under this section, an eligible entity shall submit to the
National Coordinator and the Administrator of the Centers for Medicare
& Medicaid Services a report that describes--
``(1) the progress that the entity has made on the product,
process, or structure funded by the grant; and
``(2) how patients, health-care providers, and other
individuals and entities involved in the delivery of health
care, including the Centers for Medicare & Medicaid Services,
could use the product, process, or structure funded by the
grant to enhance the delivery of and reduce the cost of health
care.
``(h) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2014 through 2016.
``SEC. 3018. DISRUPTIVE TECHNOLOGIES PRIZE PROGRAM.
``(a) Prize Program Authorized.--For purposes of rewarding
innovation in health information technology, the Secretary, acting
through the National Coordinator, shall carry out a program to award
one prize competitively in each of the three areas identified by the
Commission under subsection (e)(2)(A) using the benchmarks developed
under subsection (e)(2)(B) to select the prize recipient in each
category.
``(b) Administration of Program.--In carrying out the program under
subsection (a), the following shall apply:
``(1) Advertising.--The National Coordinator shall widely
advertise the prize competition to encourage broad
participation.
``(2) Requirements and registration.--The National
Coordinator shall publish a notice in the Federal Register
announcing--
``(A) the rules for being eligible to participate
in the competition;
``(B) the process for participants to register for
the competition;
``(C) the areas of health information technology
that the Commission develops under subsection (e)(2)(A)
for each prize; and
``(D) the benchmarks that the Commission develops
under subsection (e)(2)(B) based on which a winner will
be selected in each such area.
``(c) Eligibility.--To be eligible to win a prize under this
section, an individual or entity--
``(1) shall register to participate in the competition in
accordance with any rules promulgated by the National
Coordinator under subsection (b)(2);
``(2) in the case of an entity, shall be incorporated in
and maintain a primary place of business in the United States,
and in the case of an individual, whether participating singly
or in a group, shall be a citizen or permanent resident of the
United States; and
``(3) may not be a Federal entity or Federal employee
acting within the scope of their employment; and
``(4) shall submit an application that includes an
explanation of the anticipated market viability of the
technology that such individual or entity would develop with
funds received under the prize program.
``(d) Prize Amount.--
``(1) In general.--Subject to paragraph (2), a prize
awarded under this section shall be in the amount of
$10,000,000.
``(2) Alternative rule.--In the case that the amount made
available for prize awards under this section is less than
$33,000,000, the National Coordinator may reserve not more than
10 percent for the administrative costs of carrying out this
section, and shall divide the remaining amount equally for the
three prizes awarded under this section.
``(e) Commission.--
``(1) In general.--There is established a commission to
carry out the activities described in paragraph (2) (referred
to in this section as the `Commission').
``(2) Duties.--
``(A) Areas of health information technology.--For
the purposes of the prize program under subsection (a),
the Commission shall identify three areas within the
field of health information technology that are not
adequately addressed by certified EHR technologies and
the use of such technologies. Each area identified
shall be an area that will promote the development of
technologies that would be widely useful, would help
decrease the cost of health care, and would improve the
quality of health care, particularly for patients.
``(B) Benchmarks.--The Commission shall develop the
benchmarks that the National Coordinator shall use to
determine the prize recipient in each area identified
under subparagraph (A). The Commission shall identify
such benchmarks with the goals of--
``(i) attracting participants from outside
the health information technology field that
will take new approaches to addressing the
areas identified by the Commission under
subparagraph (A);
``(ii) solving such challenges; and
``(iii) promoting the development of
technologies that will be widely adopted,
particularly by patients.
``(C) Restriction of prize award.--The Commission
shall determine how to restrict the prize recipients'
use of the funds awarded as a prize under this section,
with respect to the development of health information
technology, in order to ensure that the prize
recipients use such funds to further develop the
technologies for which such prize was awarded.
``(3) Members.--
``(A) Number and appointment.--The Commission shall
be composed of 10 members appointed by the National
Coordinator not later than 90 days after the date of
the enactment of this Act.
``(B) Composition.--Each member of the Commission
shall be appointed to represent one of the following
four categories:
``(i) The varied disciplines within the
health information technology field.
``(ii) The varied disciplines within the
medical field that are not described in clause
(i).
``(iii) Individuals who--
``(I) represent a patient-led,
patient-centered organization with a
patient constituency;
``(II) have experience with health
information technology and privacy; and
``(III) are trained, knowledgeable,
and prepared to participate in the
decisionmaking process regarding health
information technology.
``(iv) Officers or employees of the Federal
Government.
``(C) Representation of membership categories.--At
least two members of the Commission shall represent
each of the categories described in subparagraph (B).
``(D) Travel expenses.--Each member shall receive
travel expenses, including per diem in lieu of
subsistence, in accordance with applicable provisions
under subchapter I of chapter 57 of title 5, United
States Code.
``(E) First meeting.--The Commission shall hold its
first meeting not later than 180 days after the date of
the enactment of this Act.
``(4) Report to the national coordinator.--Not later than
one year after the date of enactment of this Act, the
Commission shall submit to the National Coordinator a report
containing the areas, benchmarks, and restrictions on the uses
of prize awards that the Commission identifies for the prize
program under paragraph (2).
``(5) Termination.--The Commission shall terminate upon
submitting its report to the National Coordinator under
paragraph (4).
``(f) Authorization of Appropriations.--In addition to sums
authorized to be appropriated to carry out this subtitle under section
3020, there is authorized to be appropriated to carry out this section
$33,000,000 for fiscal year 2014.''.
(b) Conforming Amendments.--
(1) Section 3011 of such Act (42 U.S.C. 300jj-31) is
amended--
(A) in subsection (a), by striking ``section 3018''
and inserting ``section 3020''; and
(B) in subsection (b), by striking ``section 3018''
and inserting ``section 3020''.
(2) Section 3020 of such Act (as so redesignated) is
amended by inserting ``except for section 3018,'' after ``For
purposes of carrying out this subtitle,''.
SEC. 5. ESTABLISHMENT OF THE OFFICE OF WIRELESS HEALTH TECHNOLOGY.
Chapter X of the Federal Food, Drug, and Cosmetic Act (21 U.S.C.
391 et seq.) is amended by adding at the end the following new section:
``SEC. 1013. OFFICE OF WIRELESS HEALTH TECHNOLOGY.
``(a) Establishment.--There is established within the Office of the
Commissioner an office to be known as the Office of Wireless Health
Technology (referred to in this section as the `Office'), which shall
be headed by a director.
``(b) Appointment of First Director.--The first Director of the
Office shall be appointed by the Commissioner not later than 90 days
after the date of enactment of this section.
``(c) Duties.--The Director of the Office shall--
``(1) through public meetings and other forms of
communication with individuals and entities that design,
produce, disseminate, or have a prevailing interest in wireless
health technology, receive and analyze recommendations with
respect to ways that existing regulations regarding wireless
health technology might be made more reasonable and
predictable, including ways that such regulations could be
clarified and simplified;
``(2) coordinate with federal agencies, offices,
institutes, and centers involved in the regulation of wireless
health technology, including the Federal Communications
Commission, the Office of the National Coordinator for Health
Information Technology, the Centers for Medicare & Medicaid
Services, the Agency for Healthcare Research and Quality, the
National Institute of Standards and Technology, the Health
Resources and Services Administration, and the National
Institutes of Health, regarding activities of such agencies,
offices, institutes, and centers that can be improved so as to
make such regulation more robust, predictable, and easily
understood and navigated by individuals and entities that
design, produce, disseminate, or have a prevailing interest in
wireless health technology;
``(3) provide information to individuals and entities that
design, produce, disseminate, or have a prevailing interest in
wireless health technology on how to design, produce, or
disseminate wireless health technology in accordance with
existing law; and
``(4) publish and make available on the public Internet
website of the Food and Drug Administration in a searchable
format an annual report that--
``(A) explains how the Food and Drug Administration
implemented regulations regarding wireless health
technology during the prior year;
``(B) analyzes the effectiveness of--
``(i) such regulations; and
``(ii) other wireless health-related
efforts by the Food and Drug Administration;
and
``(C) provides specific recommendations on how the
Food and Drug Administration should improve its
practices with regard to wireless health technology (in
a manner that ensures consistency within the Food and
Drug Administration regarding the application of its
regulatory approach without compromising patient safety
or privacy) in order to--
``(i) remove barriers to innovations in
such technology; and
``(ii) align such practices with the
practices of other Federal agencies.
``(d) Consultation With Working Group and Commissions.--In carrying
out the duties specified in subsection (c), the Director of the Office
shall consult with any working group convened under section 618(b)(1)
of the Food and Drug Administration Safety and Innovation Act, and may
consult with any Federal commission.
``(e) Definition of Wireless Health Technology.--For purposes of
this section, the term `wireless health technology' has such meaning as
specified by the Commissioner pursuant to regulation, but in no case
shall include technology this is not regulated under the provisions of
this Act (other than this section).
``(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $1,000,000 for each of fiscal
years 2014 through 2018.''.
SEC. 6. MOBILE HEALTH SOFTWARE APPLICATION TECHNOLOGY RESPONSIBILITIES
OF THE HEALTH INFORMATION TECHNOLOGY RESEARCH CENTER.
Section 3012 of the Public Health Service Act (42 U.S.C. 300jj-32)
is amended--
(1) in subsection (b), by adding at the end the following
new paragraph:
``(4) Encouragement of design, production, and
dissemination of mobile health software application
technology.--
``(A) In general.--In addition to the purposes
under paragraph (3), the Center shall--
``(i) establish an educational website
repository and a response mechanism (such as a
national telephone number) to provide timely
responses to questions in order to make
information available and provide direct
support to individuals and entities that
design, produce, disseminate, or have a
prevailing interest in mobile health software
application technology regarding the actions
such individuals and entities must take in
order to ensure that such technology is
designed, produced, and disseminated in
accordance with Federal law; and
``(ii) publish and make available on the
public Internet website of the Department in a
searchable format an annual report that--
``(I) highlights and explains the
laws and regulations that commonly
impede efforts by individuals and
entities to design, produce, or
disseminate mobile health software
application technology; and
``(II) discusses the work the
Center has completed in the past year
with regard to mobile health software
application technology, including
accomplishments by the Center and
challenges that may require more work
or outside support in order for the
Center to accomplish the objectives
outlined in this subparagraph.
``(B) Definition of mobile health software
application technology.--For purposes of subparagraph
(A), the term `mobile health software application
technology' means a software program that--
``(i) offers health-related services and
runs on a mobile device; or
``(ii) enables health-related services
through other portals associated with the use
of a mobile device.
``(C) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
paragraph $500,000 for each of fiscal years 2014
through 2018.''; and
(2) in subsection (c)(8), by deleting ``paragraph (3)'' and
inserting ``paragraphs (3) and (4)''.
SEC. 7. WORKFORCE RETRAINING GRANTS.
(a) In General.--The National Coordinator for Health Information
Technology may award to eligible entities grants to be used for
training health care workers in health information technology (in this
section referred to as ``HIT'').
(b) Period of Grant.--The period of a grant under this section
shall be 24 months.
(c) Eligible Entities.--In this section, ``eligible entities''
means entities that provide clinical health care services to
individuals within the United States.
(d) Job Transition.--As a condition on receipt of a grant under
this section, a grantee shall ensure that each employee whose HIT
training is funded by that grant assumes expanded duties with the
grantee, either in the form of a new employment position or revised
duties within such employee's existing employment position, that
requires the use of HIT, not more than 1 year after the employee
completes the training.
(e) Reporting.--Each grantee shall submit a report not later than
24 months after receipt of a grant to the National Coordinator for
Health Information Technology including the following:
(1) The number of employees who received training pursuant
to the grant.
(2) The HIT skills covered during such training or
trainings.
(3) Documentation that each trained employee commenced or
will commence work in a new position that satisfies the
condition set forth in subsection (d).
(f) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $10,000,000 for each of fiscal
years 2014 through 2018.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, and Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, and Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, and Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Health.
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