ePrescribing Incentives Ending

Note: If you received a letter from CMS stating that you are subject to a 2% adjustment (i.e. penalty) on your 2014 Medicare claims for non-participation in the ePrescribing program, but you successfully demonstrated meaningful use in 2012 or the first half of 2013, you should request a review as instructed in the notification an Informal Review no later than February 28, 2014.

Legislation: The Medicare Improvements for Patients and Providers Act (MIPPA)

The ePrescribing incentive program ends after 2014—the last incentives will be earned in 2013 and penalties for non-participation will be incurred through 2014, according to the chart below. Incentives and penalties are calculated as a percentage of estimated total Medicare Part B Fee-For-Service Allowed Charges submitted by the end of February of the following year, according to the following schedule:

Year ePrescribing Bonus Non-ePrescribing Penalty
2009 Bonus 2% – paid Fall 2010
2010 Bonus 2% – paid Fall 2011
2011 Bonus 1% – paid Fall 2012
2012 Bonus 1% – paid Fall 2013 Penalty 1%
2013 Bonus 0.5% Penalty 1.5%
2014 Bonus 0% Penalty 2.0%

2014 ePrescribing Penalties:
To avoid the 2014 ePrescribing penalty, Program-eligible providers had to complete any one of the following actions:

ePrescribed and used the code G-8553 on 25 Medicare encounters (with specified CPT codes) between January and December 2012

ePrescribed and used the code G-8553 on 10 Medicare encounters (with any CPT codes) between January 1 and June 30, 2013

Earned a 2012 Meaningful Use (EHR) Incentive or earned a 2013 Meaningful Use (EHR) Incentive by June 30, 2013

Adopted a certified EHR and registered for the EHR Incentive Program for the first time between January 1 and June 30, 2013

Requested a Hardship Exemption by June 30, 2013

Submitted G-8642 to indicate practicing in a rural area, G-8643 to indicate insufficient pharmacies, or G-8644 to indicate lack of prescribing privileges. (The relevant code only needed to be submitted on one Medicare claim during the reporting period.)


  1. says

    Have you seen any documentation rredgaing who gets taxed if the provider reassigns their EHR incentive payment to the organization they are contracted with to provide services?The payments are taxable, per CMS. But if the organization receives it, not the provider, then does the organization pay the Federal Income tax?Thank you

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