On February 17, 2009, President Obama signed the American Reinvestment and Recovery Act. Under the stimulus plan, physicians can qualify for $44,000 in Medicare or $64,000 in Medicaid incentives through HITECH if they demonstrate “meaningful use” of an Electronic Health Record starting in 2011.
MedicareTo be eligible for the payment incentives, providers must:
Medicare Advantage (MA)-Affiliated Physicians: Physicians employed by a MA organization are eligible if the organization attests that they are meaningful EHR users. A contracted physician is eligible if he/she furnishes at least 80% of the entity’s Medicare patient care services; at least 80% of his/her services are provided to the entity’s enrollees; and provides at least 20 hours per week of patient care service. |
MedicaidTo be eligible for the payment incentives, providers must:
To receive Medicaid incentives in the initial year, an EP only needs to demonstrate that they have engaged in efforts to “adopt, implement, or upgrade certified EHR technology” but by the second year they need to show meaningful use of the EHR. |
Physicians must choose between Medicare and Medicaid incentives.
MedicareBeginning with professional services provided in 2011, physicians who adopt and use electronic health records (EHRs) to improve care may receive to up to $44,000 over five years if they have at least $24,000 in Medicare allowed charges per year. Incentive payments would be equal to 75% of the allowed charges for all covered professional services furnished each year up to a maximum payment as shown in the following table: Maximum Medicare Incentive
There will be no incentive payments for those who reach meaningful use after 2014 and penalties will begin in 2015 Eligible professionals predominantly furnishing services in a health professional shortage area will be eligible for an additional 10% maximum incentive payment each year. Medicare PenaltiesIf the eligible professional has not demonstrated “meaningful use” of their EHR by 2015, the fee schedule for furnished services will be reduced by 1% each year beginning in 2015, to a maximum reduction of 3%. Hardship exceptions may apply. |
MedicaidBeginning in 2011, states will pay eligible Medicaid providers up to $63,750 (reduced by payments from any other sources) for certified EHR technology and support services including maintenance and training necessary for adoption and operation. Incentives may not exceed: Year 1: $ 21,500. per provider Subsequent Years: $8,500 per provider, for up to five years, but no later than 2021. If a provider has completed adopting, implementing, or upgrading such technology prior to the first year of payment, #1 & #2 above will still apply. This translates to a maximum payment of:
Please ask your NCG Medical representative about your specific incentive amount if you received payments for EHR technology or support services from other sources. Otherwise, the maximum incentives above apply. There will be no incentive payments after 2021. |
All Medicare providers who become meaningful users of an EHR will be recognized on the CMS website.
Low cost loans and grants may be available for purchase of hardware, software, and implementation.
Assistance with selection, adoption, and workflow re-design will be provided by the Health Information Technology Regional Extension Center.
The eligible professional demonstrates that he/she is using certified EHR technology in a meaningful manner, which includes the use of electronic prescribing.
A professional may satisfy the demonstration requirement through means specified by the Secretary, which may include:
Note: The Secretary may not require the electronic reporting of information on clinical quality measures unless the Secretary has the capacity to accept the information electronically, which may be on a pilot basis.
To be eligible, all providers must meet the following registration requirements: