National

HHS Takes New Steps to Accelerate Adoption of Electronic Prescribing
Medicare Payments for Successful Electronic Prescribers, Reporting Quality Data are Important Steps Toward a Value-Driven Health Care System

Medicare is starting a new program to encourage physicians to adopt e-prescribing systems.  Incentive payments will be available beginning in 2009 for physicians who meet the requirements of the program.  The initiative is part of the Administration’s broader efforts to accelerate the adoption of health IT and the establishment of a health care system based on value. 

Beginning in 2009, and during the next four years, Medicare will provide incentive payments to eligible professionals who are successful electronic prescribers.  Eligible professionals will receive a 2 percent incentive payment in 2009 and 2010; a 1 percent incentive payment in 2011 and 2012; and a one half percent incentive payment in 2013. 

Beginning in 2012, eligible professionals who are not successful electronic prescribers will receive a reduction in payment. Eligible professionals may be exempted from the reduction in payment, on a case-by-case basis if it is determined that compliance with requirement for being a successful prescriber would result in significant hardship.

To read more, see the entire HHS Fact Sheet at http://www.hhs.gov/news/facts/eprescribing.html

For information related to the 2010 eRx Incentive Program, go to:
http://www.cms.gov/erxincentive/

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On January 1, 2006, the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) created Medicare Part D, a comprehensive voluntary prescription drug benefit for Medicare recipients.  

Prescription drug plans participating as Medicare Part D Plans are required to participate in e-prescribing but participation is optional for physicians and pharmacies. On November 1, 2005 the US Department of Health & Human Services adopted electronic prescribing standards for Medicare Part D Plans. The standards cover:

• Transactions between prescribers (who write prescriptions) and dispensers (who fill prescriptions) for new prescriptions; refill requests and responses; prescription change requests and responses; prescription cancellation, request and response; and related messaging and administrative transactions;
• Eligibility and benefits queries and responses between prescribers and Part D sponsors; and
• Eligibility queries between dispensers and Part D sponsors.

To test these standards the Centers for Medicare & Medicaid (CMS) awarded grants to five pilot sites to test the developed standards. A final e-prescribing rule was issued on April 7, 2008.

E-Prescribing Final Rule on foundation standards
E-Rx Report to Congress [PDF, 311KB]
Evaluation of E-Prescribing Standards
http://www.cms.hhs.gov/EPrescribing/