MINNEAPOLIS, December 1, 2008—The Medicare Improvements for Patients & Providers Act of 2008 (MIPPA) provides that, starting in 2009, physicians will be eligible for incentive payments when they e-prescribe for Medicare patients seen in their offices.

Physicians who are eligible for the incentive payments but fail to adopt e-prescribing will face penalties, beginning in 2012.

Physicians with e-prescribing systems that comply with CMS standards, and for whom office visits, consultations, eye exams, psychotherapy and certain other services represent at least 10 percent of their Medicare charges, are eligible for the new incentive payments.

An analysis by the American Medical Association suggests nearly all physicians who have an office practice will meet this 10 percent threshold. The incentive payment for eligible professionals who successfully e-prescribe medications in 2009 and 2010 will be equal to 2 percent of their total Medicare payments for the year, payable as a lump sump several months into the subsequent year.

Eligible physicians must report one of three e-prescribing G codes for at least 50 percent of all of their Medicare office visits, consultations, and certain other services.

A new frequently asked questions document on Medicare’s new e-prescribing program will available on the AMA web site shortly. Additional information, including a CMS guide to the e-prescribing incentive program, is available at the CMS website.