Incentives to e-Prescribe

By Lorraine Savage

Everyone, it seems, wants doctors to e-prescribe. Physicians are facing an onslaught of government incentives, state and local urgings, and healthcare and consumer organizations’ guilt to make the transition from antiquated paper prescription pads to 21st century electronic prescription systems.

Medicare Incentive Program

The biggest step toward universal e-prescribing was the passage on July 15, 2008 of the new Medicare law that includes an incentive program to increase the use of e-prescribing. Under the measure, physicians participating in Medicare Part D who e-prescribe will receive an incentive bonus of 2% starting in 2009 and for 2010. The bonus goes down to 1% for 2011 and 2012, and to 0.5% in 2013. In addition, Medicare doctors who do not e-prescribe will see their Medicare payments reduced by 1% in 2012, 1.5% in 2013, and 2% thereafter.

Some states are sweetening the Medicare deal. For instance, Tennessee has offered a grant of $3,500 to doctors who e-prescribe for two years. And while New Hampshire has not offered monetary incentives, the state’s Citizens Health Initiative, backed by the governor, developed a plan two years ago to encourage all physicians to e-prescribe by October 2008. More here Electronic Prescription