Healthcare Providers That Don't E-Prescribe May See 1% Medicare Payment Reduction

Beginning in 2012, approximately 209,000 healthcare providers are in danger of being penalized by a 1 percent reduction in Medicare payments for not prescribing medications electronically, according to an InformationWeek news report.

The Centers for Medicare and Medicaid Services said it will be assessing claims from the first six months of this year as a baseline period to determine e-prescribing activity. The Medicare e-prescribing program, under the 2008 Medicare Improvements for Patients and Providers Act, allows incentive payments to those who electronically prescribe at least 10 percent of medications. Bonuses would be paid until 2013, while gradual payment cuts would be applied starting in 2012 for noncompliance.

To make matters more interesting, CMS also implemented an incentive program for meaningful users of electronic health records. Under that incentive program, eligible providers do not have to prove they have met the 75 percent e-prescribing threshold until Oct. 1. This means eligible providers seeking incentive payments under the EHR incentive program may be at risk of payment reductions for failure to meet e-prescribing requirements.

CMS has recently proposed additional hardship exemptions from the e-prescribing requirements to accommodate eligible providers participating in both incentive programs.

The proposed exemptions are open to public comment until July 25, according to the news report. However, some critics say the maligned incentive programs may force some eligible providers to "scrap" e-prescribing systems in order to implement a full EHR.

Read the news report about the e-prescribing penalty.

Related Articles on E-Prescribing:
CMS Issues Proposed Changes to E-Prescribing Incentive Program
Healthcare Providers Find Shortfalls With E-Prescribing Systems
Study: E-Prescribing May Lead to Unintended Medication Errors

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