Section 3021 of the health care law establishes standards for electronic health record-keeping at the federal and state levels. While it does not allocate specific funding for implementing new systems, it does include guidelines for applying for grants to develop health IT systems and adapt existing systems to the new standards.

Obama's budget for FY 2011 includes $110 million for developing a health information technology infrastructure. "Combined with the Recovery Act’s Federal grant and incen­tive programs... these efforts will improve the quality of health care while protecting privacy and security of personal health information," according to a White House fact sheet.

The Senate's health care reform bill contains requirements that the secretary of Health and Human Services adopt standards for improving health IT.

"These provisions would result in about $11 billion in federal savings in Medicaid and reduced subsidies paid through the insurance exchanges," the Congressional Budget Office reports. "In addition, these standards would result in an increase in revenues of about $8 billion as an indirect effect of reducing the cost of private health insurance plans."

The House passed its health care reform bill, which encourages hospitals to adopt electronic health records.

Hospitals and other medical providers stand to gain or lose government aid over the next few years based on whether they're making "meaningful use" of electronic health records, as spelled out in this year's stimulus package. But what that means, exactly, is still being worked out.

A Health and Human Services advisory panel is accepting input on "meaningful use" through June 26. A proposed rule is expected from the Centers for Medicare and Medicaid Services this year.

The stimulus package sets aside $17 billion for EHR incentives through Medicare and Medicaid. Those payments will begin as early as October 2010 for hospitals demonstrating "meaningful use" and January 2011 for other providers. But if they don't comply by 2015, their regular CMS payments will be reduced.

The final version of the stimulus package signed by Obama includes $19 billion for health IT modernization, including about $17 billion in incentives to Medicare and Medicaid providers to adopt electronic health records.

The compromise bill allocates $19 billion for health IT systems.

The House passed the economic recovery package, approving the $20 billion for modernizing health IT systems.

The House Ways and Means and Energy and Commerce committees approved the two-year, $825 billion economic stimulus package, including the $20 billion allocated for health care IT.

Obama is dedicating $20 billion of his economic recovery package -- now estimated at $825 billion overall -- to launching a new health information technology initiative that aims to establish national standards, financial incentives and privacy protections for electronic medical records. Health and Human Services Secretary-designate Tom Daschle spoke during his Jan. 8 confirmation hearings of the need for greater use of IT in overhauling the health care system.