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EMR Stimulus Info: Incentive for Physician Medicare Incentive


EMR Stimulus Information

American Recovery and Reinvestment Act 2009 - “Stimulus Package”

The American Recovery and Reinvestment Act of 2009, commonly known as the “Stimulus Package”, was signed into law by President Obama on February 17, 2009. The stimulus package of $787 billion was announced by President Obama, in order to improve the economic growth of USA.

The proposed investment for Healthcare IT was allocated $30 billion initially, later on some modifications had done by Congress, and it is now $19.2 billion, which is intended to be used to enhance the use of EMR by providers and hospitals. This part of the bill is called the Health Information Technology for Economic and Clinical Health Act, or HITECH Act.

President Obama promised to spend $50 billion in all, over five years in order to improve the situation of the American Healthcare sector. At the same time, he planned to offer incentive of $17 billion through Medicare and Medicaid, hence encouraging providers/physicians to adopt certified EMR.

The main objective of Obama’s Stimulus Package:

  • To lower health care costs
  • To reduce medical errors
  • To improve point care
  • To improve access to data, such as healthcare IT, opportunities will arise to improve business intelligence programs in healthcare
  • To improve Quality

Incentive for Physicians

Physician incentives are allocated in two different payment forms of Medicare and Medicaid reimbursements in addition to grant programs. Physician can start earning incentives in 2011 by demonstrating “meaningful use” of EMR. Physicians can earn from $2,000 to $18,000 in a given year. The department of Health and Human Services (HHS) will be defining the clear definition of “meaningful use” in the year ahead.

This "meaningful use" imbibes using the technology to exchange electronic health data to improve care quality and submitting care quality measures to HHS. In addition, hospitals and doctors will need to meet these requirements within a specified time frame.

In order to provide information about receiving incentive payments, HIMSS has a few suggestions:

  • Rely on CCHIT as the certifying body for EMRs.
  • Adopt metrics that can demonstrate meaningful use, and make them increasingly more stringent over two years or so.
  • Work with HITSP and IHE to make sure systems are interoperable.
  • Close the existing gap between "certified EMR technologies," "best of breed," and " open source" technologies

As per the law defines, eligible providers will be treated as a meaningful user of EMR technology if they meet the following three criteria:

  • Uses a certified EMR in a meaningful manner, which includes the use of Electronic prescribing (e-prescribing)
  • TUses a certified EMR that can accommodate the electronic exchange of Health information to improve quality of health care
  • Submit information on clinical quality measures, as chosen by the Health and Human Services (HHS) Secretary, for the reporting period

    • Medicare Incentive

    Those providers who are not adopting EMR by 2015 will see reductions in their Medicare reimbursements of 1 % in 2015, 2% in 2016 and 3 % in 2017. The possible incentive will be offered maximum of $44,000 per physician, depending on when providers implement EMR. In order to receive the full amount, physicians must be implementing EMR by 2012; therefore, no payment will be made available after 2015.

    Year-EMR use is first demonstrate Provider will receive incentives each year
    2011 2012 2013 2014 2015 2016 Total
    2011 $18 K $12 K $8 K $4 K $2 K $0 $44 K
    2012 $0 $18 K $12 K $8 K $4 K $2 K $44 K
    2013 $0 $0 $15 K $12 K $8 K $4 K $39 K
    2014 $0 $0 $0 $12 K $8 K $4 K $24 K
    Source: American Recovery and Reinvestment Act 2009


    Not adopting EMR by the year Providers will see reductions in their Medicare reimbursements (%)
    2015 1
    2016 2
    2017 3

    Providers will get incentive either from Medicare or from Medicaid under the stimulus package, because they can not get both as per the law notes.