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As of January 1, 2015 there is no longer a financial incentive for a healthcare professional participating in the American Recovery and Reinvestment Act of 2009. Going forward those healthcare professionals who are not meaningful user of Certified Electronic Health Record (EHR) Technology under the Medicare EHR Incentive Program will be penalized a percentage of their expected Medicare reimbursement.
As part of the American Recovery and Reinvestment Act of 2009 (ARRA), Congress mandated that payment adjustments to be applied to Medicare eligible professionals who are not meaningful users of Certified Electronic Health Record (EHR) Technology under the Medicare EHR Incentive Programs.
These payment adjustments will be applied beginning on January 1, 2015, for Medicare eligible professionals.
The payment reduction begins in 2015 with a 1% reduction in Medicare reimbursements and can rise to as much as 5% by 2019.
Eligible professionals receive the payment adjustment amount that is tied to the year that they did not demonstrate meaningful use.
A health care professional who is eligible for a payment adjustment in 2018 will receive a 4% PFS reduction regardless if this is their first or fourth year not demonstrating meaningful use.
If the percentage of meaningful users is less than 75% of those eligible this reduction could reach 5%.
Medicaid eligible professionals who can only participate in the Medicaid EHR Incentive Program and do not bill Medicare are not subject to these payment adjustments.
For more information click on this link to the Medicare and Medicaid EHR Incentive Program Basics page on the Centers for Medicare and Medicaid Services website. It contains a table with the schedule of payment reductions from 2015 to 2020 and beyond.