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EHR Incentive Program

Overview

The Medicare and Medicaid EHR Incentive Programs will provide incentive payments to eligible professionals, eligible hospitals and critical access hospitals (CAHs) as they adopt, implement, upgrade or demonstrate meaningful use of certified EHR technology. Under this program Eligible Professionals will be paid incentives for upgrading to an Electronic Health Record program before 2015. Beginning in 2015, doctors will be penalized in the form of reduced Medicare payments. The incentive program differs Medicare is federally run by CMS and Medicaid incentive program is run by States and is voluntary.

Registration begins January3, 2011 and Key to Maximum Incentive Payments is early Participation.


Medicare Incentive Program

  • Participation can begin as early as 2011.
  • Eligible professionals can receive up to $44,000 over five years under the Medicare EHR Incentive Program. There's an additional incentive for eligible professionals who provide services in a Health Professional Shortage Area (HSPA).
  • Incentive payments for eligible hospitals and CAHs may begin as early as 2011 and are based on a number of factors, beginning with a $2 million base payment.
  • Important! For 2015 and later, Medicare eligible professionals, eligible hospitals, and CAHs that do not successfully demonstrate meaningful use will have a payment adjustment in their Medicare reimbursement.
Medicare Incentives Each Year
Based on First-Year MU Compliance PQRI e-Prescription
Year 2011 2012 2013 2014 Penalty Bonus Bonus Penalty
2009           2.0% 2.0%  
2010           2.0% 2.0%  
2011 $18,000           1.0%  
2012 $12,000 $18,000         1.0% -1.0%
2013 $8,000 $12,000 $15,000       0.5% -1.5%
2014 $4,000 $8,000 $12,000 $12,000       -2.0%
2015 $2,000 $4,000 $8,000 $8,000 -1.0%     -2.0%
2016   $2,000 $4,000 $4,000 -2.0%     -2.0%
2017         -3.0%     -2.0%
....         -3.0% to -5.0%     -2.0%
  $44,000 $44,000 $39,000 $24,000        

For more information please visit http://www.cms.gov


Medicare Incentive Schedule

Medicaid EHR Incentive Program

The Medicaid EHR Incentive Program is voluntarily offered by individual states and territories and may begin as early as 2011, depending on the state. It will provide incentive payments to eligible professionals, eligible hospitals, and CAHs as they adopt, implement, upgrade, or demonstrate meaningful use of certified EHR technology in their first year of participation and demonstrate meaningful use for up to five remaining participation years.

  • Eligible professionals can receive up to $63,750 over the six years that they choose to participate in the program.
  • Eligible hospital incentive payments may begin as early as 2011, depending on when the state begins its program. The last year a Medicaid eligible hospital may begin the program is 2016. Hospital payments are based on a number of factors, beginning with a $2 million base payment.
  • There are no payment adjustments under the Medicaid EHR Incentive Program.

Medicaid Incentives Each Year
Medicaid Eligible Professionals Qualifies to Receive First Payment
Year 2011 2012 2013 2014 2015 2016
2011 $21,250       
2012  $8,500 $21,250     
2013 $8,500  $8,500 $21,250   
2014 $8,500 $8,500  $8,500 $21,250 
2015 $8,500 $8,500 $8,500  $8,500 $21,250 
2016 $8,500 $8,500 $8,500 $8,500  $8,500 $21,250 
2017 $8,500 $8,500 $8,500 $8,500  $8,500
2018   $8,500 $8,500 $8,500 $8,500
2019       $8,500 $8,500 $8,500
2020 $8,500 $8,500
2021         $8,500
  $63,750 $63,750 $63,750 $63,750 $63,750 $63,750

For more information please visit http://www.cms.gov


Eligibility for Incentive Payments

Medicare EHR Incentive Program Eligibilty

  • Incentive payments for eligible professionals are based on individual practitioners.
  • Each eligible professional within a practice may qualify for an incentive payment as long as each eligible professional successfully demonstrates meaningful use of certified EHR technology.
  • Each eligible professional is only eligible for one incentive payment per year, regardless of how many practices or locations at which he or she provide services.
  • Hospital-based eligible professionals are not eligible for incentive payments. An eligible professional is considered hospital-based if 90% or more of his or her services are performed in a hospital inpatient (Place of Service code 21) or emergency room (Place of Service code 23) setting.

Eligible Professionals under the Medicare EHR Incentive Program Include

  • Doctor of medicine or osteopathy
  • Doctor of dental surgery or dental medicine
  • Doctor of podiatry
  • Doctor of optometry Chiropractor


Medicaid EHR Incentive Program

Eligibility Requirements for Professionals

  • Have a minimum 30% Medicaid patient volume*
  • Have a minimum 20% Medicaid patient volume, and is a pediatrician*
  • Practice predominantly in a Federally Qualified Health Center or Rural Health Center and have a minimum 30% patient volume attributable to needy individuals

* Children's Health Insurance Program (CHIP) patients do not count toward the Medicaid patient volume criteria.

What if the EP is Eligible for Both Programs?

Eligible professionals eligible for both the Medicare and Medicaid EHR Incentive Programs must choose which incentive program they wish to participate in when they register. Before 2015, an eligible professional may switch programs only once after the first incentive payment is initiated. Most eligible professionals will maximize their incentive payments by participating in the Medicaid EHR Incentive Program.

Eligibility Requirements for Hospitals

Some hospitals may receive incentive payments from both Medicare and Medicaid if they meet all eligibility criteria. Please visit www.cms.gov/EHRincentiveprograms

Eligible Hospital under the Medicare EHR Incentive Program

  • "Subsection (d) hospitals" in the 50 states or DC that are paid under the Inpatient Prospective Payment System (IPPS)
  • Critical Access Hospitals (CAHs)
  • Medicare Advantage (MA-Affiliated) Hospitals


Registration

Registration for the Medicare and Medicaid EHR Incentive
Programs opens on January 3, 2011. In order to receive maximum incentive payments early registration is important. The time to register is NOW.

Click here for Registration.


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DISCLAIMER
This fact sheet was prepared as a service to the public and is not intended to grant rights or impose obligations. This fact sheet may contain references or links to statutes, regulations, or other policy materials. The inforĀ¬mation provided is only intended to be a general summary. It is not intended to take the place of either the written law or regulations. We encourage readers to review the specific statutes, regulations, and other interpreĀ¬tive materials for a full and accurate statement of their contents.

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