EHR Stimulus
Do You Qualify?

The world’s most respected healthcare facilities, small hospitals, non-profits and private practices depend on Perfect Care EHR to keep their practices running smoothly.

American Reinvestment
and Recovery Act

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.

Eligibility

Medicare

To be eligible for the payment incentives, providers must:

  1. Use a certified EHR in a meaningful manner;
  2. Exchange health information to improve the quality of care
  3. Report on clinical quality measures
  4. Meet these requirements by the 2014 payment year, although those ready by 2011-2012 will earn the most
  5. Be a practicing MD, DO, DDS, DMD, DPM, OD, or Chiropractor

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.

Medicaid

To be eligible for the payment incentives, providers must:

  1. Be an eligible professional that is not hospital-based and has at least 30% of patient volume attributable to Medicaid; or
  2. Be a pediatrician, who is not hospital-based and at least 20% of the volume is attributable to Medicaid (These physicians will be eligible for two-thirds of the indicated payments); or
  3. Practice predominantly in a Federally Qualified Health Center (FQHC) or Rural Health Center (RHC) and have at least 30% of patient volume attributable to needy individuals

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.

Payment Incentives

Physicians must choose between Medicare and Medicaid incentives.

Medicare

Beginning 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
First Year of Meaningful Use of EHR

Year of Services 2011 2012 2013 2014 2015
2011 $18,000 ----- ----- -----  
2012 $12,000 $18,000 ----- -----  
2013 $8,000 $12,000 $15,000 -----  
2014 $4,000 $8,000 $12,000 $12,000  
2015 $2,000 $4,000 $8,000 $8,000 $0
2016 ----- $2,000 $4,000 $4,000 $0
Total Max $44,000 $44,000 $39,000 $24,000 $0

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 Penalties

If 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.

Medicaid

Beginning 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:

Year 1
2011-2016
Year 2 Year 3 Year 4 Year 5 Year 6 Total Max
$21,250 $8,500 $8,500 $8,500 $8,500 $8,500 $63,750

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.

Other Incentives

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.

Definitions and Terms

Meaningful Use of Certified EHR Technology:

The eligible professional demonstrates that he/she is using certified EHR technology in a meaningful manner, which includes the use of electronic prescribing.

Demonstration of “Meaningful Use”

A professional may satisfy the demonstration requirement through means specified by the Secretary, which may include:

  1. An attestation
  2. The submission of claims with appropriate coding
  3. A survey response
  4. Reporting on clinical quality measures using an EHR
  5. Other means specified by the Secretary

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.

Program Registration

To be eligible, all providers must meet the following registration requirements:

  • Register via the EHR Incentive Program website (registration will be available early 2011)
  • Be enrolled in Medicare FFS, MA, or Medicaid (FFS or managed care)
  • Have a National Provider Identifier (NPI)
  • Be enrolled in PECOS (Medicare providers only)

Eligible Professional:

  1. Physician
  2. Dentist
  3. Certified nurse mid-wife
  4. Nurse practitioner
  5. Physician assistant practicing in a rural health clinic that
    is led by a physician assistant, or is practicing in a FQHC

 Needy Individual

  1. Receives Medicaid
  2. Receives assistance under Title XXI (SCHIP)
  3. Furnished uncompensated care by the provider
  4. Charged a reduced rate based on ability to pay