E-Prescribing Developments and Considerations – Part II

One of the primary reasons for the current swell in interest in E-Prescribing is Medicare’s 2009 bonus.

Section 132 of the Medicare Improvements for Patients and Providers Act of 2008 (“MIPPA”) (followed by the Medicare Physician Fee Schedule for calendar year 2009) creates a bonus for providers who are successful E-Prescribers during 2009. The 2009 bonus is based upon a provider’s (or practice’s) aggregate Medicare Part B collections for the 2009 calendar year (or, more specifically, it is based upon actual/expected Medicare collections related to 2009 encounters that are submitted for reimbursement by February 28, 2010).

MIPAA also creates an incentive structure for years subsequent to 2009, which employs a ‘carrot-and-stick’ approach. The details are as follows:

The Carrots
(Bonus for E-Prescribers)
2009 – 2%
2010 – 2%
2011 – 1%
2012 – 1%
2013 – ½ %
Thereafter – 0%
The Sticks (Penalty for Non-Users)
2009 – (0%)
2010 – (0%)
2011 – (0%)
2012 – (1%)
2013 – (1 ½ %)
Thereafter – (2%)

We hope this discussion of Medicare’s bonus and penalties for E-prescribing has been helpful. Our next blog will address the type of E-Prescribing system that is required to earn a bonus.

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