[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4157 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4157

   To amend the Social Security Act to encourage the dissemination, 
    security, confidentiality, and usefulness of health information 
                              technology.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 27, 2005

  Mrs. Johnson of Connecticut (for herself, Mr. Deal of Georgia, Mr. 
Blunt, Mr. Cantor, Mr. McCrery, Mr. Sam Johnson of Texas, Mr. Camp, Mr. 
 Ramstad, Mr. English of Pennsylvania, Mr. Hayworth, Mr. Hulshof, Mr. 
 Herger, Mr. Lewis of Kentucky, Mr. Weller, Mr. Ryan of Wisconsin, Mr. 
 Beauprez, Mr. Upton, Mrs. Wilson of New Mexico, Mr. Bass, Mr. Terry, 
  Mr. Murphy, Mr. Bradley of New Hampshire, Mr. Boehlert, Mr. Castle, 
  Mrs. Emerson, Mr. Gerlach, Mr. Hobson, Mrs. Kelly, Mr. Jindal, Mr. 
    Schwarz of Michigan, Mr. Shays, and Mr. Simmons) introduced the 
   following bill; which was referred to the Committee on Energy and 
  Commerce, and in addition to the Committee on Ways and Means, 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 amend the Social Security Act to encourage the dissemination, 
    security, confidentiality, and usefulness of health information 
                              technology.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Health Information 
Technology Promotion Act of 2005''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Office of the National Coordinator for Health Information 
                            Technology.
Sec. 3. Safe harbors for provision of health information technology and 
                            training services to health care 
                            professionals.
Sec. 4. Uniform health information laws and regulations.
Sec. 5. Rulemaking to upgrade ASC X12 and NCPDP standards and ICD 
                            codes.
Sec. 6. Report on the American Health Information Community.
Sec. 7. Strategic plan for coordinating implementation of health 
                            information technology.

SEC. 2. OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH INFORMATION 
              TECHNOLOGY.

    (a) In General.--Title II of the Public Health Service Act is 
amended by adding at the end the following new part:

                ``Part D--Health Information Technology

 ``office of the national coordinator for health information technology

    ``Sec. 271.
    ``(a) Establishment.--There is established within the Department of 
Health and Human Services an Office of the National Coordinator for 
Health Information Technology that shall be headed by the National 
Coordinator for Health Information Technology (referred to in this 
section as the `National Coordinator'). The National Coordinator shall 
be appointed by the President and shall report directly to the 
Secretary. The National Coordinator shall be paid at a rate equal to 
the rate of basic pay for level IV of the Executive Schedule.
    ``(b) Goals of Nationwide Interoperable Health Information 
Technology Infrastructure.--The National Coordinator shall perform the 
duties under subsection (c) in a manner consistent with the development 
of a nationwide interoperable health information technology 
infrastructure that--
            ``(1) improves health care quality, reduces medical errors, 
        increases the efficiency of care, and advances the delivery of 
        appropriate, evidence-based health care services;
            ``(2) promotes wellness, disease prevention, and management 
        of chronic illnesses by increasing the availability and 
        transparency of information related to the health care needs of 
        an individual for such individual;
            ``(3) ensures that appropriate information necessary to 
        make medical decisions is available in a usable form at the 
        time and in the location that the medical service involved is 
        provided;
            ``(4) produces greater value for health care expenditures 
        by reducing health care costs that result from inefficiency, 
        medical errors, inappropriate care, and incomplete information;
            ``(5) promotes a more effective marketplace, greater 
        competition, greater systems analysis, increased choice, 
        enhanced quality, and improved outcomes in health care 
        services;
            ``(6) improves the coordination of information and the 
        provision of such services through an effective infrastructure 
        for the secure and authorized exchange and use of health care 
        information; and
            ``(7) ensures that the confidentiality of individually 
        identifiable health information of a patient is secure and 
        protected.
    ``(c) Duties of National Coordinator.--
            ``(1) Strategic planner for interoperable health 
        information technology.--The National Coordinator shall 
        maintain, direct, and oversee the continuous improvement of a 
        strategic plan to guide the nationwide implementation of 
        interoperable health information technology in both the public 
        and private health care sectors consistent with subsection (b).
            ``(2) Principal advisor to hhs.--The National Coordinator 
        shall serve as the principal advisor of the Secretary on the 
        development, application, and use of health information 
        technology, and coordinate the health information technology 
        programs of the Department of Health and Human Services.
            ``(3) Coordinator of federal government activities.--
                    ``(A) In general.--The National Coordinator shall 
                serve as the coordinator of Federal Government 
                activities relating to health information technology.
                    ``(B) Specific coordination functions.--In carrying 
                out subparagraph (A), the National Coordinator shall 
                provide for--
                            ``(i) the development and approval of 
                        standards used in the electronic creation, 
                        maintenance, or exchange of health information; 
                        and
                            ``(ii) the certification and inspection of 
                        health information technology products, 
                        exchanges, and architectures to ensure that 
                        such products, exchanges, and architectures 
                        conform to the applicable standards approved 
                        under clause (i).
                    ``(C) Use of private entities.--The National 
                Coordinator shall, to the maximum extent possible, 
                contract with or recognize private entities in carrying 
                out subparagraph (B).
                    ``(D) Uniform application of standards.--A standard 
                approved under subparagraph (B)(i) for use in the 
                electronic creation, maintenance, or exchange of health 
                information shall preempt a standard adopted under 
                State law, regulation, or rule for such a use.
            ``(4) Intragovernmental coordinator.--The National 
        Coordinator shall ensure that health information technology 
        policies and programs of the Department of Health and Human 
        Services are coordinated with those of relevant executive 
        branch agencies and departments with a goal to avoid 
        duplication of effort and to ensure that each agency or 
        department conducts programs within the areas of its greatest 
        expertise and its mission in order to create a national 
        interoperable health information system capable of meeting 
        national public health needs effectively and efficiently.
            ``(5) Advisor to omb.--The National Coordinator shall 
        provide to the Director of the Office of Management and Budget 
        comments and advice with respect to specific Federal health 
        information technology programs.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section 
for each of fiscal years 2006 through 2010.''.
    (b) Treatment of Executive Order 13335.--Executive Order 13335 
shall not have any force or effect after the date of the enactment of 
this Act.
    (c) Transition From ONCHIT Under Executive Order.--
            (1) In general.--All functions, personnel, assets, 
        liabilities, administrative actions, and statutory reporting 
        requirements applicable to the old National Coordinator or the 
        Office of the old National Coordinator on the date before the 
        date of the enactment of this Act shall be transferred, and 
        applied in the same manner and under the same terms and 
        conditions, to the new National Coordinator and the Office of 
        the new National Coordinator as of the date of the enactment of 
        this Act.
            (2) Acting national coordinator.--Before the appointment of 
        the new National Coordinator, the old National Coordinator 
        shall act as the National Coordinator for Health Information 
        Technology until the office is filled as provided in section 
        271(a) of the Public Health Service Act, as added by subsection 
        (a). The President may appoint the old National Coordinator as 
        the new National Coordinator.
            (3) Definitions.--For purposes of this subsection:
                    (A) New national coordinator.--The term ``new 
                National Coordinator'' means the National Coordinator 
                for Health Information Technology appointed under 
                section 271(a) of the Public Health Service Act, as 
                added by subsection (a).
                    (B) Old national coordinator.--The term ``old 
                National Coordinator'' means the National Coordinator 
                for Health Information Technology appointed under 
                Executive Order 13335.

SEC. 3. SAFE HARBORS FOR PROVISION OF HEALTH INFORMATION TECHNOLOGY AND 
              TRAINING SERVICES TO HEALTH CARE PROFESSIONALS.

    (a) For Civil Penalties.--Section 1128A(b) of the Social Security 
Act (42 U.S.C. 1320a-7a(b)) is amended by adding at the end the 
following new paragraph:
    ``(4)(A) For purposes of this subsection, a payment described in 
paragraph (1) does not include any nonmonetary remuneration (in the 
form of health information technology and related training services) 
made by an entity to a physician if--
            ``(i) such remuneration is made without a condition that--
                    ``(I) limits or restricts the use of the health 
                information technology to services provided by the 
                physician to individuals receiving services at the 
                entity;
                    ``(II) limits or restricts the use of the health 
                information technology in conjunction with other health 
                information technology; or
                    ``(III) takes into account the volume or value of 
                referrals (or other business generated) by the 
                physician to the entity;
            ``(ii) in the case of such remuneration made on a date that 
        is on or after the date described in section 3(d)(2) of the 
        Health Information Technology Promotion Act of 2005, to the 
        extent the National Coordinator of Health Information 
        Technology has approved a standard under section 
        271(c)(3)(B)(i) of the Public Health Service Act, the health 
        information technology provided conforms to such standard;
            ``(iii) in the case of such remuneration made on or after 
        the date that is three years after the date described in 
        section 3(d)(2) of the Health Information Technology Promotion 
        Act of 2005, if the Secretary establishes criteria under 
        section 3(e)(3) of such Act, such remuneration is made in 
        accordance with such criteria; and
            ``(iv) such remuneration is arranged for in a written 
        agreement that is signed by a representative of the entity and 
        by the physician and that specifies the remuneration made.
    ``(B) For purposes of subparagraph (A) and sections 1128B(b)(3)(J) 
and 1877(e)(9), the term `health information technology' means 
hardware, software, license, right, intellectual property, equipment, 
or other information technology used primarily for the electronic 
creation, maintenance, and exchange of clinical health information to 
improve health care quality or efficiency.''.
    (b) For Criminal Penalties.--Section 1128B(b)(3) of such Act (42 
U.S.C. 1320a-7b(b)(3)) is amended--
            (1) in subparagraph (G), by striking ``and'' at the end;
            (2) in the subparagraph (H) added by section 237(d) of the 
        Medicare Prescription Drug, Improvement, and Modernization Act 
        of 2003 (Public Law 108-173; 117 Stat. 2213)--
                    (A) by moving such subparagraph 2 ems to the left; 
                and
                    (B) by striking the period at the end and inserting 
                a semicolon;
            (3) in the subparagraph (H) added by section 431(a) of such 
        Act (117 Stat. 2287)--
                    (A) by redesignating such subparagraph as 
                subparagraph (I);
                    (B) by moving such subparagraph 2 ems to the left; 
                and
                    (C) by striking the period at the end and inserting 
                ``; and''; and
            (4) by adding at the end the following new subparagraph:
            ``(J) any nonmonetary remuneration (in the form of health 
        information technology, as defined in section 1128A(b)(4)(B), 
        and related training services) made to a person if--
                    ``(i) such remuneration is solicited or received 
                (or offered or paid) without a condition that--
                            ``(I) limits or restricts the use of the 
                        health information technology to services 
                        provided by the person to individuals receiving 
                        services at the location of the entity 
                        providing such technology;
                            ``(II) limits or restricts the use of the 
                        health information technology in conjunction 
                        with other health information technology; or
                            ``(III) takes into account the volume or 
                        value of referrals (or other business 
                        generated) by the person to the entity 
                        providing such technology;
                    ``(ii) in the case of such remuneration made on a 
                date that is on or after the date described in section 
                3(d)(2) of the Health Information Technology Promotion 
                Act of 2005, to the extent the National Coordinator of 
                Health Information Technology has approved a standard 
                under section 271(c)(3)(B)(i) of the Public Health 
                Service Act, the health information technology provided 
                conforms to such standard;
                    ``(iii) in the case of such remuneration made on or 
                after the date that is three years after the date 
                described in section 3(d)(2) of the Health Information 
                Technology Promotion Act of 2005, if the Secretary 
                establishes criteria under section 3(e)(3) of such Act, 
                such remuneration is made in accordance with such 
                criteria; and
                    ``(iv) such remuneration is arranged for in a 
                written agreement that is signed by the parties 
                involved and that specifies the remuneration solicited 
                or received (or offered or paid).''.
    (c) For Limitation on Certain Physician Referrals.--Section 1877(e) 
of such Act (42 U.S.C. 1395nn(e)) is amended by adding at the end the 
following new paragraph:
            ``(9) Information technology and training services.--Any 
        nonmonetary remuneration (in the form of health information 
        technology, as defined in section 1128A(b)(4)(B), and related 
        training services) made by an entity to a physician if--
                    ``(A) such remuneration is made without a condition 
                that--
                            ``(i) limits or restricts the use of the 
                        health information technology to services 
                        provided by the physician to individuals 
                        receiving services at the location of the 
                        entity providing such technology;
                            ``(ii) limits or restricts the use of the 
                        health information technology in conjunction 
                        with other health information technology; or
                            ``(iii) takes into account the volume or 
                        value of referrals (or other business 
                        generated) by the physician to the entity 
                        providing such technology;
                    ``(B) in the case of such remuneration made on a 
                date that is on or after the date described in section 
                3(d)(2) of the Health Information Technology Promotion 
                Act of 2005, to the extent the National Coordinator of 
                Health Information Technology has approved a standard 
                under section 271(c)(3)(B)(i) of the Public Health 
                Service Act, the health information technology provided 
                conforms to such standard;
                    ``(C) in the case of such remuneration made on or 
                after the date that is three years after the date 
                described in section 3(d)(2) of the Health Information 
                Technology Promotion Act of 2005, if the Secretary 
                establishes criteria under section 3(e)(3) of such Act, 
                such remuneration is made in accordance with such 
                criteria; and
                    ``(D) such remuneration is arranged for in a 
                written agreement that is signed by a representative of 
                the entity and by the physician and that specifies the 
                remuneration made.''.
    (d) Regulation, Effective Date, and Effect on State Laws.--
            (1) Regulations.--Not later than 180 days after the date of 
        the enactment of this Act, the Secretary of Health and Human 
        Services shall promulgate such regulations as may be necessary 
        to carry out the provisions of this section.
            (2) Effective date.--The amendments made by this section 
        shall take effect on the date that is 180 days after the date 
        of the enactment of this Act.
            (3) Preemption of state laws.--No State (as defined in 
        section 4(a)(3)) shall have in effect a State law that imposes 
        a criminal or civil penalty for a transaction described in 
        section 1128A(b)(4); 1128B(b)(3)(J); or 1877(e)(9) of the 
        Social Security Act, as added by this section, if the 
        conditions described in the respective section, with respect to 
        such transaction, are met.
    (e) Study and Report to Assess Effect of Safe Harbors on Health 
System.--
            (1) In general.--The Secretary of Health and Human Services 
        shall conduct a study to determine the impact of each of the 
        safe harbors described in paragraph (4). In particular, the 
        study shall examine the following:
                    (A) The effectiveness of each safe harbor in 
                increasing the adoption of health information 
                technology.
                    (B) The types of health information technology 
                provided under each safe harbor.
                    (C) The extent to which the financial or other 
                business relationships between providers under each 
                safe harbor have changed as a result of the safe harbor 
                in a way that adversely affects the health care system 
                or choices available to consumers.
            (2) Report.--Not later than three years after the effective 
        date described in subsection (d)(2), the Secretary of Health 
        and Human Services shall submit to Congress a report on the 
        study under paragraph (1) and shall include such 
        recommendations for changes in the safe harbors as the 
        Secretary determines may be appropriate.
            (3) Updated criteria for permissible health information 
        technology remuneration under safe harbors.--Not later than 
        three years after the effective date described in subsection 
        (d)(2), the Secretary of Health and Human Services may issue 
        regulations that establish updated criteria for nonmonetary 
        remuneration (in the form of health information technology and 
        related training services) for purposes of the safe harbors 
        described in paragraph (4). Such criteria may be based on the 
        extent to which the health information technology conforms to a 
        standard developed under section 271(c)(3)(B)(i) of the Public 
        Health Service Act, as added by section 2, only to the extent 
        that such standard is recognized by the National Coordinator of 
        Health Information Technology under such section 
        271(c)(3)(B)(i).
            (4) Safe harbors described.--For purposes of paragraphs (1) 
        and (3), the safe harbors described in this paragraph are--
                    (A) the safe harbor under section 1128A(b)(4) of 
                the Social Security Act (42 U.S.C. 1320a-7a(b)(4)), as 
                added by subsection (a);
                    (B) the safe harbor under section 1128B(b)(3)(J) of 
                such Act (42 U.S.C. 1320a-7b(b)(3)(J)), as added by 
                subsection (b); and
                    (C) the safe harbor under section 1877(e)(9) of 
                such Act (42 U.S.C. 1395nn(e)(9)), as added by 
                subsection (c).

SEC. 4. UNIFORM HEALTH INFORMATION LAWS AND REGULATIONS.

    (a) Study to Determine Extent of Variation in State Health 
Information Laws and Regulations.--
            (1) In general.--The Secretary of Health and Human Services 
        shall conduct a study of State security and confidentiality 
        laws and current Federal security and confidentiality standards 
        to determine--
                    (A) the degree to which such State laws vary among 
                States, and between the States and such current Federal 
                standards;
                    (B) how any such variation may adversely impact the 
                security and confidentiality of individually 
                identifiable health information and the electronic 
                exchange of clinical health information among States, 
                the Federal government, and private entities; and
                    (C) the strengths and weaknesses of such State laws 
                and of such current Federal standards for purposes of 
                protecting the security and confidentiality of 
                individually identifiable health information while also 
                taking into account the need for timely and efficient 
                exchanges of health information to improve quality of 
                care and ensure the availability of health information 
                necessary to make medical decisions at the the location 
                in which the medical care involved is provided.
            (2) Report.--Not later than 18 months after the date of the 
        enactment of this Act, the Secretary of Health and Human 
        Services shall submit to Congress a report on the study under 
        paragraph (1) and shall include in such report--
                    (A) a determination by the Secretary whether State 
                security and confidentiality laws and current Federal 
                security and confidentiality standards should be 
                conformed to create a single set of national standards 
                to preserve and protect the security and 
                confidentiality of patient health information in order 
                to improve health care quality and efficiency; and
                    (B) if the Secretary determines such State laws and 
                such current Federal standards should be conformed to 
                create such a single set of national standards, what 
                the single set of standards should be.
            (3) Definitions.--For purposes of this subsection:
                    (A) State security and confidentiality laws.--The 
                term ``State security and confidentiality laws'' means 
                State laws and regulations relating to the privacy and 
                confidentiality of individually identifiable health 
                information or to the security of such information.
                    (B) Current federal security and confidentiality 
                standards.--The term ``current Federal security and 
                confidentiality standards'' means the Federal privacy 
                standards established pursuant to section 264(c) of the 
                Health Insurance Portability and Accountability Act of 
                1996 (42 U.S.C. 1320d-2 note) and security standards 
                established under section 1173(d) of the Social 
                Security Act.
                    (C) State.--The term ``State'' has the meaning 
                given such term when used in title XI of the Social 
                Security Act, as provided under section 1101(a) of such 
                Act (42 U.S.C. 1301(a)).
    (b) Establishment of Uniform Confidentiality and Security 
Standards.--
            (1) In general.--Section 1178(a) of the Social Security Act 
        (42 U.S.C. 1320d-7(a)), is amended--
                    (A) in paragraph (1), by inserting after ``Except 
                as provided in paragraph (2)'' the following: ``and 
                subject to paragraph (3)'';
                    (B) in paragraph (2), by striking ``A provision'' 
                and inserting ``Subject to paragraph (3)(B), a 
                provision''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) Uniform national standards.--
                    ``(A) In general.--
                            ``(i) Creating uniform national 
                        standards.--If the conditions under clause (ii) 
                        are met, then the regulation and standards 
                        described in subparagraph (C) shall become the 
                        single set of national standards to preserve 
                        and protect the security and confidentiality of 
                        individually identifiable patient health 
                        information in order to improve health care 
                        quality and efficiency and supersede the 
                        current Federal security and confidentiality 
                        standards and State security and 
                        confidentiality laws, as defined in section 
                        4(a)(3) of the Health Information Technology 
                        Promotion Act of 2005.
                            ``(ii) Conditions.--For purposes of clause 
                        (i), the conditions under this clause are the 
                        following:
                                    ``(I) Determination of need for 
                                single set of standards.--The Secretary 
                                determines under section 4(a)(2)(A) of 
                                the Health Information Technology 
                                Promotion Act of 2005 that State 
                                security and confidentiality laws and 
                                current Federal security and 
                                confidentiality standards should be 
                                conformed to create a single set of 
                                national standards to preserve and 
                                protect the security and 
                                confidentiality of individually 
                                identifiable patient health information 
                                in order to improve health care quality 
                                and efficiency.
                                    ``(II) Secretary specifies 
                                standards.--The Secretary specifies 
                                that the regulation and standards 
                                described in subparagraph (C) should be 
                                the single set of national standards.
                                    ``(III) No legislation establishing 
                                standards.--Legislation creating a 
                                single set of national standards and 
                                preempting State security and 
                                confidentiality laws is not enacted by 
                                the date that is 36 months after the 
                                date of the enactment of the Health 
                                Information Technology Promotion Act of 
                                2005.
                    ``(B) Narrowing of preemption exceptions.--
                            ``(i) Subsequent legislation.--If 
                        legislation described in subparagraph (A) is 
                        enacted by the date described in such 
                        subparagraph, as of the date of enactment of 
                        such legislation paragraph (2) shall be 
                        superseded by such exceptions as may be 
                        provided for in such legislation. It is the 
                        intent of Congress that such exceptions be as 
                        narrow as possible to maximize the uniform 
                        application of the regulation and standards 
                        described in subparagraph (C).
                            ``(ii) No legislation.--If legislation 
                        described in subparagraph (A) is not enacted by 
                        the date described in such subparagraph, 
                        paragraph (2) shall be superseded by such 
                        exceptions as may be provided for by the 
                        Secretary by regulation issued in connection 
                        with the regulation and standards described in 
                        subparagraph (C). It is the intent of Congress 
                        that such exceptions be as narrow as possible 
                        to maximize the uniform application of the 
                        regulation and standards described in 
                        subparagraph (C).
                    ``(C) Application of uniform standards.--The 
                regulation and standards described in this subparagraph 
                are the regulation promulgated under section 264(c)(1) 
                of the Health Insurance Portability and Accountability 
                Act of 1996 (42 U.S.C. 1320d-2 note) and standards 
                under section 1173(d), as modified by the Secretary to 
                the extent the Secretary determines, after 
                consideration of the results of the study conducted 
                under section 4(a) of the Health Information Technology 
                Promotion Act of 2005, necessary to promote uniformity 
                and efficiency in the application of confidentiality 
                and security standards with respect to individually 
                identifiable health information.''.
            (2) HIPAA conforming amendment.--Section 264(c)(2) of the 
        Health Insurance Portability and Accountability Act of 1996 (42 
        U.S.C. 1320d-2 note) is amended by striking ``A regulation'' 
        and inserting ``(A) Subject to section 1178(a)(3) of the Social 
        Security Act, a regulation''.

SEC. 5. RULEMAKING TO UPGRADE ASC X12 AND NCPDP STANDARDS AND ICD 
              CODES.

    (a) In General.--Not later than April 1, 2007, the Secretary of 
Health and Human Services shall promulgate a final rule under section 
1174(b) of the Social Security Act (42 U.S.C. 1320d-3(b)) to provide 
for the following modification of standards:
            (1) Accredited standards committee x12 (asc x12) 
        standard.--The replacement of the Accredited Standards 
        Committee X12 (ASC X12) version 4010 adopted under section 
        1173(a) of such Act (42 U.S.C. 1320d-2(a)), including for 
        purposes of part A of title XVIII of such Act, with the ASC X12 
        version 5010, as reviewed by the National Committee on Vital 
        Health Statistics.
            (2) National council for prescription drug programs (ncpdp) 
        telecommunications standards.--The replacement of the National 
        Council for Prescription Drug Programs (NCPDP) 
        Telecommunications Standards version 5.1 adopted under section 
        1173(a) of such Act (42 U.S.C. 1320d-2(a)), including for 
        purposes of part A of title XVIII of such Act, with NCPDP 
        Telecommunications Standards version C.3, as approved by such 
        Council and reviewed by the National Committee on Vital Health 
        Statistics.
            (3) ICD codes.--The replacement of the International 
        Statistical Classification of Diseases and Related Health 
        Problems, 9th revision, Clinical Modification (ICD-9-CM) under 
        the regulation promulgated under section 1173(c) of such Act 
        (42 U.S.C. 1320d-2(c)), including for purposes of part A of 
        title XVIII of such Act, with both of the following:
                    (A) The International Statistical Classification of 
                Diseases and Related Health Problems, 10th revision, 
                Clinical Modification (ICD-10-CM).
                    (B) The International Statistical Classification of 
                Diseases and Related Health Problems, 10th revision, 
                Procedure Coding System (ICD-10-PCS).
    (b) Rule of Construction.--Nothing in subsection (a)(3) shall be 
construed as affecting the application of classification methodologies 
or codes, such as CPT or HCPCS codes, other than under the 
International Statistical Classification of Diseases and Related Health 
Problems (ICD).
    (c) Notice.--Not later than 30 days after the date of the enactment 
of this Act, the Secretary of Health and Human Services shall publish 
in the Federal Register a notice of the requirements to promulgate 
final rules under subsection (a). Such notice shall include--
            (1) the respective date by which each such rule must be 
        promulgated under such subsection;
            (2) the respective compliance date described in subsection 
        (e) for each such rule; and
            (3) a statement that entities covered under the Health 
        Insurance Portability and Accountability Act of 1996 and health 
        information technology vendors should plan for the 
        implementation of upgraded ASC X12, NCPDP, and ICD codes under 
        such subsection.
    (d) No Judicial Review.--The final rules promulgated under 
subsections (a) shall not be subject to judicial review.
    (e) Compliance With Upgraded Standards.--For purposes of section 
1175(b)(2) of the Social Security Act (42 U.S.C. 1320d-4(b)(2))--
            (1) ASC x12 and ncpdp standards.--The final rules 
        promulgated under paragraphs (1) and (2) of subsection (a) 
        shall apply to transactions occurring on or after April 1, 
        2009.
            (2) ICD codes.--The final rule promulgated under paragraph 
        (3) of subsection (a) shall apply to transactions occurring on 
        or after October 1, 2009.

SEC. 6. REPORT ON THE AMERICAN HEALTH INFORMATION COMMUNITY.

    Not later than two years after the date of the enactment of this 
Act, the Secretary of Health and Human Services shall submit to 
Congress a report on the work conducted by the American Health 
Information Community (in this section referred to as ``AHIC''), as 
established by the Secretary. Such report shall include the following:
            (1) A description of the accomplishments of AHIC, with 
        respect to the promotion of the development of a nationwide 
        health information network and the increased adoption of health 
        information technology.
            (2) Information identifying the practices that are used to 
        protect health information and to guarantee confidentiality and 
        security of such information.
            (3) Information on the progress in--
                    (A) establishing uniform industry-wide health 
                information technology standards;
                    (B) achieving an internet-based nationwide health 
                information network; and
                    (C) achieving interoperable electronic health 
                record adoption across health care providers.
            (4) Recommendations for the transition of the AHIC to a 
        permanent advisory entity, including--
                    (A) a schedule for such transition;
                    (B) options for structuring the entity as either a 
                public-private or private sector entity;
                    (C) the role of the Federal Government in the 
                entity; and
                    (D) the ongoing responsibilities of the entity, 
                such as in establishing standards, certifying health 
                information technology, and providing long-term 
                governance for health care transformation.

SEC. 7. STRATEGIC PLAN FOR COORDINATING IMPLEMENTATION OF HEALTH 
              INFORMATION TECHNOLOGY.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Health and Human Services, in 
consultation with entities involved in the area of health information 
technology, shall develop a strategic plan related to the need for 
coordination in such area.
    (b) Coordination of Specific Implementation Processes.--The 
strategic plan under subsection (a) shall address the need for 
coordination in the implementation of the following:
            (1) Health information technology standards.--Health 
        information technology standards approved under section 
        271(c)(3)(B)(i) of the Public Health Service Act, as added by 
        section 2.
            (2) HIPAA transaction standards.--Transaction standards 
        under section 1173(a) of the Social Security Act (42 U.S.C. 
        1320d-2(d)).
            (3) Updated icd codes.--The International Statistical 
        Classification of Diseases and Related Health Problems, 10th 
        revision, Clinical Modification (ICD-10-CM) and the 
        International Statistical Classification of Diseases and 
        Related Health Problems, 10th revision, Procedure Coding System 
        (ICD-10-PCS) described in section 5.
    (c) Coordination Among Specific Federal Entities.--The strategic 
plan under subsection (a) shall address any methods to coordinate, with 
respect to the electronic exchange of health information, actions taken 
by the following entities:
            (1) The Office of the National Coordinator for Health 
        Information Technology.
            (2) The American Health Information Community.
            (3) The Office of Electronic Standards and Security of the 
        Centers for Medicare and Medicaid Services.
            (4) The National Committee on Vital Health Statistics.
            (5) Any other entity involved in the electronic exchange of 
        health information that the Secretary determines appropriate.
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