Medicare Act Provides Incentives for ePrescribing

Physicians who prescribe electronically for Medicare fee-for-service patients will receive incentives under the Medicare Improvements for Patients and Providers Act of 2008. The act, passed in July, also averted the 10.6 percent reduction in Medicare physician payments. 

Beginning in 2009, successful electronic prescribers will receive bonuses. The act defines a "successful electronic prescriber" as an eligible professional who reports using a qualifying electronic prescribing system for at least 50 percent of the prescriptions written. 

In 2009, the bonus will be 2 percent of all covered professional services but the bonus decreases annually through 2013. Beginning in 2012, physicians who do not meet the "successful electronic prescriber" requirements will be penalized. Penalties increase annually between 2012 and 2014. The act provides for hardship exceptions on a case-by-case basis. 

Physicians will be required to report on Medicare fee-for-service claims whether they provided a prescription during a patient encounter and whether the prescription was submitted using a qualifying electronic prescribing system. 

For the latest details on the program, visit the Centers for Medicare and Medicaid Services website. Check the eHealth technology section for more information as it becomes available.

Last Updated: 8/5/2008
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