Center for Health Information Technology at AAFP

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CMS E-Prescribing Incentives

As of January 1, 2009, clinicians are eligible for a bonus payment under Medicare if they are e-prescribing and report such on at least fifty percent of Medicare patients through submitted claims.

Clinicians can receive bonuses of two percent of Medicare allowed charges in 2009 and 2010; one percent in 2011 and 2012; and a half percent in 2013.  Beginning in 2012, there will be a penalty for those not e-prescribing, which increases to two percent of Medicare allowed charges in 2014.

Qualified E-prescribing System

To be eligible for the incentive, the prescriber must use a qualified system.  This can be either a stand-alone e-prescribing application or an integrated part of an electronic health record (EHR) system.  In either case, the system must be able to do all of the following:
  • Generate a complete active medication list incorporating electronic data received from applicable pharmacies and benefit managers (PBMs), if available
  • Select medications, print prescriptions, electronically transmit prescriptions, and conduct safety alerts (such as drug-drug interactions)
  • Provide information related to lower cost, therapeutically appropriate alternatives (The availability of tiered formulary information would meet this requirement for 2009.)
  • Provide information on formulary or tiered formulary medications, patient eligibility, and authorization requirements received electronically from the patient's drug plan, if available

Additional Resources

Getting Started With E-prescribing -- The AAFP has partnered with the Center for Improving Medication Management to provide this 'readiness assessment' for family medicine practices
Eligible Professionals -- Description of eligible professionals for the CMS e-prescribing incentive program
Educational Resources -- Additional educational resources on the e-prescribing incentive including a fact sheet and quick reference from CMS
Sample Claim for E-prescribing Incentive -- A detailed sample of an individual NPI reporting the e-prescribing measure on a CMS-1500 claim
(1-page PDF file; About PDFs)
Federal Health-IT Incentives

American Recovery and Reinvestment Act of 2009

CMS E-Prescribing Incentives

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