MAY 27, 2009 4:15pm ET

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Maryland Enacts Incentives for EHR Use

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Maryland officials believe the state is the first to enact legislation to require private insurers to offer financial incentives to health care providers for adoption of electronic health records.

Gov. Martin O'Malley recently signed HB 706, which also requires two commissions to designate a statewide health information exchange by Oct. 1, 2009. The state has issued a request for application for establishment of the exchange and responses are due by June 12. The state has set aside $10 million to fund start-up of the exchange.

The new law's authorization of financial incentives for EHR adoption builds on similar Medicare and Medicaid incentives created under the federal American Recovery and Reinvestment Act.

Under the new Maryland law, now Chapter 689, the state must adopt regulations governing the payer incentive programs by September 2011, with incentives starting in fiscal year 2012.

For text of HB 706, click here. Enter HB 706 in the Bill Number box, then scroll down to the Third Reading version of the bill, which was its final form.

--Joseph Goedert

EHR

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