In 2009 the Centers for Medicare and Medicaid Services (CMS) began offering incentive payments to eligible providers for use of an ePrescribing system in the treatment of Medicare patients. The NCMS reminds physicians and practices that in 2012 this incentive program could become a penalty for many physicians and physician assistants.

The penalty for not successfully participating in the Medicare ePrescribing incentive program or not filing for a hardship exemption is a one percent payment reduction for all Medicare claims based on the 2012 fee schedule amounts for the year.

Individual eligible physicians and physician assistants may be subject to the reduction in 2012 unless they:

• are successful ePrescribers during the reporting period, meaning 10 unique ePrescribing events for patients in eRx measures denominator;
• were not a physician or physician assistant as of June 30, 2011; and
• do not have at least 100 cases containing an encounter code in measure denominator.

Eligible professionals and group practices can submit an application for a hardship exemption to the ePrescribing penalty, but must do so no later than November 1, 2011.  Learn more about how to file for a hardship exemption by visiting the CMS website here.